“Ukroboronprom” Advances Defense Sector Reform by Corporatizing 10 Enterprises

by Roman Cheplyk
Monday, February 5, 2024
“Ukroboronprom” Advances Defense Sector Reform by Corporatizing 10 Enterprises

“Ukroboronprom,” Ukraine’s state defense conglomerate, has announced the transformation of ten of its state-owned defense enterprises into economic entities, marking a significant step in the reform of Ukraine’s defense-industrial complex

This move, approved by the company's supervisory board, aims to modernize the defense sector by transitioning eight enterprises into limited liability companies and two into joint-stock companies.

Herman Smetanin, General Director of JSC "Ukrainian Defense Industry," highlighted that this decision brings the total number of corporatized enterprises to 38, moving closer to the ultimate goal of transforming the state defense industry into a contemporary weapons company. This reform is expected to enhance technological development, production capabilities, attract investments, and establish joint ventures with both private and international partners, thereby increasing the industry's resistance to corruption.

David Lomzharia, head of "Ukroboronprom's" supervisory board, emphasized the company's commitment to executing transformational reforms, improving risk management, governance, and compliance systems, and enhancing accountability to meet the urgent demands and objectives set by the state leadership for the defense sector.

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