Ukroboronprom will cease to operate next year - Husev

Ukroboronprom will cease to operate next year - Husev

Ukrinform
Ukraine's state defense conglomerate Ukroboronprom will cease to operate next year, and holding companies working on the principle of corporate governance will be established instead.

According to an Ukrinform correspondent, the newly appointed director general of Ukroboronprom, Yuriy Husev, said this during his first press conference in this status.

"Ukroboronprom will cease to exist next year. New holding companies working on the principle of corporate governance will be created," he said.

According to Husev, a separate meeting of the National Security and Defense Council is to be held in the near future to consider the transformation and reform of the defense conglomerate.

"We discussed with the president of Ukraine the need and expediency of holding a separate meeting of the National Security and Defense Council with the proposal to consider the reform of Ukroboronprom and the defense industry sector as a whole, as well as to approve the appropriate measures that need to be taken by our team," Husev said.

According to him, the staff of the National Security and Defense Council, the Ministry of Strategic Industries, the concerned committee of the Verkhovna Rada of Ukraine and the Security Service of Ukraine will be involved in this work.

Husev stressed that today there are only preliminary plans on how such a transformation can be done.

"It is planned to create a holding company 'Defense Systems of Ukraine' that will include holding companies that will deal with aircraft repairs, armored vehicles, high-precision weapons, ammunition, special chemicals, rotary systems, and marine systems. Also, it is planned to create an aerospace holding company that will deal with aircraft construction, space components, space systems. This is a preliminary concept that requires further consideration, discussion and approval," Husev said

According to him, such an entity envisages the existence of a supervisory board. Of the 137 companies that are currently part of Ukroboronprom, the future holding company will include about 65.

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