The Cabinet of Ministers of Ukraine approved the transformation of Ukroboronprom into a modern defense company

Publication date: 21.03.2023

Today, March 21, the Cabinet of Ministers of Ukraine at its meeting decided on the transformation of the State Concern "Ukroboronprom" into the Joint Stock Company "Ukrainian Defense Industry". This is the starting point of the transformation of Ukroboronprom into a modern high-tech defense company, where 100% of the shares belong to the state.

"This decision opens up new opportunities for the development of Defense Industry of Ukraine: technology transfer, implementation of OECD and NATO standards, investment attraction, repair, maintenance and creation of new types of weapon systems that will bring us closer to the Victory!" noted Director General of Ukroboronprom Yuriy Husyev.

As a reminder, on October 1, 2021, President of Ukraine Volodymyr Zelenskyy signed the Law of Ukraine No. 1630-IX "On the peculiarities of reforming the enterprises of the military-industrial complex of the state form of ownership", which entered into its force on October 6, 2021.

Currently, 27 member-enterprises of Ukroboronprom have already been transformed from state enterprises into business companies (LLC/JSC), another 29 are being still in a process of transformation.

In general, an implementation of a corporate model of management is the best world practice, which protects the sphere of the state defense industry from corruption risks and direct political influence, because a company becomes fully accountable to the state shareholder, open to investors and predictable to partners.

The transformation process of Ukroboronprom and its enterprises does not have an impact on a production of weapon systems for the needs of the Defense and Security Forces of Ukraine.

Read more about the reform here: