Anti-corruption strategy of the JSC "Ukrainian Defense Industry" publicly presented

Publication date: 01.09.2023

The Joint Stock Company "Ukrainian Defense Industry" (UDI), together with the Ministry for Strategic Industries of Ukraine and the National Agency on Corruption Prevention(NACP), publicly presented the Strategy for Prevention, Detection, and Counteraction of Corruption for 2023-2024, approved by the order dated August 26, 2023. And this is the next fundamental step to developing an anti-corruption infrastructure in the Company. The discussion of the document took place among experts and media representatives.

"Building an anti-corruption infrastructure is one of the three key tasks of the UDI's team — along with increasing the production capacity and transformation of the defense corporation. However, neither the second nor the third is possible without an effective, effective system of combating corruption", - emphasized Minister for Strategic Industries of Ukraine Oleksandr Kamyshin.


It is currently a short-term strategy designed for 2023-2024. It envisages the first steps of UDI, reformed into the Joint Stock Company "Ukrainian Defense Industry." Among them is forming a culture of zero-tolerance of corruption, ensuring inevitable responsibility for it, and building a system of whistleblowing channels that will report on misconduct.

"Real steps have already been taken. First, to ensure a transparent selection of company managers, a commission for selecting candidates for management positions at subsidiary companies has been developed and is starting to work. It includes representatives of the UDI, public organizations, and partner countries. Secondly, we are returning procurement to Prozorro and already have a successful case of centralized electricity procurement with almost UAH 50 million in savings. And thirdly, we are updating the Property management policy of defense industry enterprises", - notes General Director of UDI Herman Smetanin.

The Strategy was developed considering the requirements of Ukraine's legislation, per the United Nations Convention against Corruption, OECD recommendations, and the NATO Building Integrity Policy, etc. It also considers reports from NACP, NGO "Together Against Corruption," and NGO "StateWatch".

"According to the legislation, during the war, the development of the Strategy is not mandatory for UDI's enterprises. However, its management, with the support of the Minister for Strategic Industries, decided to take this important step on the way to the introduction of

international standards of corporate governance and developing integrity. Thus, more than 100 enterprises of the UDI will work in conditions of zero tolerance for corruption. These systemic institutional reforms will ultimately change public consciousness, make the industry highly productive, and contribute to our victory. NACP participated in developing the Strategy, and thanks for the openness and fruitful collaboration", said Head of NACP, Oleksandr Novikov.

Next is the step-by-step implementation of the Strategy, reporting to society and practical contribution to the success, reliability, and integrity of the defense-industrial complex of our state. This is daily work for every enterprise and every employee of UDI without any exception. Only by acting legally, under conditions of integrity and transparency, will we be able to be competitive and attract partners and investors in joint projects.