Reform of UkrOboronProm has not started due to absence of government resolution
The draft resolution was submitted to the government in June 2022
The transformation of the state concern UkrOboronProm into the Ukrainian Defence Industry Joint Stock Company has not yet begun due to the absence of a published resolution on the government's website.
This is reported by the Independent Anti-Corruption Commission.
The Secretariat of the Cabinet of Ministers confirmed that the resolution on the reform of the defence concern is not yet publicly available.
"At a government meeting on 21 March 2023, the Cabinet of Ministers adopted a resolution on the establishment of the Ukrainian Defence Industry Joint Stock Company. As of 11 April 2023, the said resolution is being drawn up in accordance with the regulatory requirements," reads a letter from the Secretariat of the Cabinet of Ministers, which is available to the commission.
The draft resolution was submitted to the Cabinet of Ministers in June 2022. Consequently, the government has been working on the document for over 9 months.
The Independent Anti-Corruption Commission emphasises that the transformation of UkrOboronProm cannot begin without the Cabinet of Ministers' resolution. Thus, the start of the corporate reform of the defence industry, which is intended to make the management system of state-owned arms manufacturers transparent and independent of political influence and open access to additional financial instruments, is once again postponed.
Background. On 6 October 2021, the Law of Ukraine No. 1630 "On Peculiarities of Reforming State-Owned Defence Industry Enterprises" came into force, which provides for a total reform of the domestic defence industry.
However, the law implemented the model of defence industry management generated in 2016-2017, when the struggle for the distribution of spheres of influence in public administration between the government, the National Security and Defence Council, the Parliamentary Committee on National Security and Defence, and the State Concern UkrOboronProm was intensifying.
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