Transformation of Ukroboronprom concern involves creation of five branch scientific-production association holdings – head

The target model of the new defense holding, which is being created during the transformation of the Ukroboronprom state concern, is a small corporate center, into which the Ukroboronprom Concern and industry holdings in various areas will now turn, Director General Yuriy Husev has said.

"We plan that 63 enterprises will become the basis for five industry research and production associations – armored vehicles, aircraft repair, high-precision weapons and ammunition, radar systems, and maritime systems. And all this should be in a completely new format – in line with the principles of corporate governance of the OECD, NATO standards," he said in an interview with Interfax-Ukraine.

According to him, given the development of the direction of unmanned aircraft, it can become a separate holding and separate cooperation with private manufacturers that successfully implement their tasks.

Husev said that taking into account one new enterprise, there are now 119 companies in the group. "Three enterprises were transferred to the Ministry of Defense during the war, two of them temporarily. These are enterprises engaged in purchasing weapons in foreign markets," he added.

According to him, some enterprises will not be included in industry holdings (for example, special exporters) and will be directly subordinate to the corporate center.

The Director General of Ukroboronprom said that the model for transforming the concern into a modern defense company will be implemented within the framework of a separate law, which President Volodymyr Zelenskyy signed in October 2021 and within the framework of the decision of the Cabinet of Ministers dated March 21 this year on the creation of JSC Ukrainian Defense Industry by the transformation of the Ukroboronprom state concern.

"It is a management company owned by the state. Further, the corporate center owns industry holdings, and they, in turn, have stakes in manufacturing enterprises in the form of limited liability companies," Husev said.

He said that in a little over a year, Ukroboronprom had transformed 28 state-owned enterprises into LLCs.

The head of the company added that the form of a joint-stock company for the Ukrainian Defense Industry was chosen in order, on the one hand, to comply with corporate governance standards, and on the other hand, to become a partner for international companies with which Ukroboronprom began to actively cooperate even before the start of the full-scale war.

Source: www.en.interfax.com.ua