UKROBORONPROM IS INNOVATIONS AND DEVELOPMENT DRIVER OF UKRAINE’S MILITARY-INDUSTRIAL COMPLEX – DENYS GURAK

Over the past 2.5 years, the State Concern "Ukroboronprom" started promoting transparency and openness of defense-industrial sector. We began training and formation of our employeesthe modern outlook of our employees, expanded cooperation with Western partners and NATO manufacturers, prioritized innovations. This was stated by UOP Deputy Director General for Foreign Economic Activity Denys Gurak at Ukrainian defense and security forum 2017, held in Kyiv.

"Our goal, the goal of the team that took charge of "Ukroboronprom" in July 2014, is to create a powerful driving force for Ukrainian military-industrial complex. We launched transformation of the company and the industry – today we note progress in many areas"- said Denys Gurak.

He step by step described the UOP progress in recent years. He explained that in 2014 the Concern was promptly solving the immediate problems for the front needs, repaired and restored military equipment from the warehouses. In 2015 UOP paid more attention to modernization, including due to budget constraints Ukraine and by the end of the year has already begun preparing production capacity for the manufacture of new modern military equipment for our military. Besides, "Ukroboronprom" is headed for technological innovation – that’s why 2016 was the year of innovation. Last year represented the latest UOP developments, such as the AN-132 and UGV "Phantom" and represented a UOP reform and created the Aircraft cluster.

Creating Aircraft cluster – engaging not only UOP enterprises, but also private sector companies – is thus a manifestation and proof of UKROBORONPROM openness. "We are not monopolists, as many believe, and the data on the distribution of state defense order. In 2006 the Concern’s share in the state defense order amounted to half only, all the rest went to the private sector or other companies of Ukrainian defense industry. Each year, UOP proportion in state order keeps reducing,"- said Denys Gurak, adding that UKROBORONPROM is not a budgetary organization.

"In 2016 Concern has mastered only 4.5 billion UAH of state defense order and delivered to the military about 7,000 units of armaments and military equipment. These funds were paid to "Ukroboronprom" from the state budget, because the country was a customer. However, we have paid to the budget 4.6 billion hryvnia taxes "- said the deputy.

As for the reform and defense industry development, Denys Gurak said that the Concern has significantly expanded the geography of partner countries and deepened cooperation with NATO. UKROBORONPROM also pays special attention to combining science and industry – innovative development platform was created, providing rapid implementation of national engineers’ ideas.

“UkrOboronProm” developed reform strategy of the military-industrial complex of Ukraine, providing internal and external audit. It allows leading international experts to get an objective picture of the Concern, focusing on the effective use of resources, implementing international management standards and reporting system. This will attract new investors, offering them a clear principle for entering the capital, protecting investment and creating a unique market offer.

Other key areas of UOP defense reform strategy are: clustering, corporatization, technology protection and creating the innovation platform.