Reforming Ukroboronprom: Key Takeaways from Ukraine’s Defense Industry Roundtable
On December 18, 2020, the Ukrainian Security Studies Institute hosted a significant roundtable discussion titled “Transformation of Ukroboronprom: The First Stage of Ukrainian Defense Industry Reform and the Expected Formats of the Ukrainian Defense Industry.” The event, held at IA Ukrinform, brought together notable experts and officials to discuss the critical reforms needed for Ukraine’s defense sector.
1. Overview of the Roundtable
Event Details
- Date: December 18, 2020
- Location: IA Ukrinform
- Hosts: Ukrainian Security Studies Institute
Key Participants
| Name | Position |
|---|---|
| Valentyn Badrak | USSI Board Member, Director of CACDS |
| Roman Bondar | First Deputy General Director of Ukroboronprom |
| Yuriy Gusev | General Director of Ukroboronprom |
| Roman Kostenko | Secretary of the Verkhovna Rada Committee on National Security, Defense and Intelligence |
| Yuriy Pashchenko | Director of the State Enterprise “Iskra” Research and Production Complex |
| Oleksiy Arestovich | Advisor to the Chairman of the President’s Office |
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2. Key Discussions and Insights
Reform Progress and Challenges
- Valentyn Badrak’s Remarks: Highlighted the positive progress towards fulfilling the State Defense Order and introduced the USSI’s joint research on Ukroboronprom. The research focused on the necessity of creating industry holdings within the defense sector.
- Yuriy Gusev and Roman Kostenko’s Debate: Discussed differing views on the proposed bill No. 3822, which aims to reform state-owned defense enterprises. The bill’s adoption is seen as crucial for establishing transparent holdings and modernizing corporate governance.
- Oleksiy Arestovich’s Perspective: Emphasized that the law’s adoption is essential for comprehensive reform. The Head of the Office and the President are committed to expediting the legislative process, though further discussions are anticipated.
Planned Reforms
- Ukroboronprom’s Future Structure: By 2021, Ukroboronprom will transition into six specialized holdings, focusing on armored vehicles, radar systems, marine systems, precision weapons, ammunition, and aircraft repair.
- Radar Systems Holding: Yuriy Pashchenko detailed the progress on creating the Radar Systems holding, which aims to centralize expertise in radar technologies and develop new capabilities in counter-battery and electronic warfare.
3. Strategic Goals and Future Outlook
Challenges Ahead
- Roman Bondar’s Insights: Discussed the complexity of transforming Ukroboronprom from a post-Soviet legacy into a modern defense holding. He stressed the importance of careful execution to avoid compromising defense capabilities.
- Financial Recovery: Addressed the need for financial restructuring and support from the state to alleviate the debt burden on defense enterprises. The goal is to achieve recovery similar to that of the space industry.
Technological Advancements
- Future Trends: Emphasized the need to invest in robotics, automated systems, and modern weaponry to keep pace with evolving threats, particularly from Russia. The focus will be on enhancing technological capabilities for future conflicts.
4. Conclusion
The roundtable highlighted the significant steps being taken towards reforming Ukroboronprom and modernizing Ukraine’s defense industry. The discussions underscored the importance of legislative support, strategic planning, and financial recovery in achieving a successful transformation.
