10:00 21.09.2020

Author SVITLANA PANAIOTIDI

Euro-Atlantic integration: a map of reforms for Ukraine

4 min read
Euro-Atlantic integration: a map of reforms for Ukraine

Svitlana Panaiotidi, Deputy Minister of Economic Development, Trade and Agriculture of Ukraine

 

Back in May this year, the President approved the Annual National Program for 2020 under the aegis of the NATO-Ukraine Commission. This document is aimed at the systematic implementation of the strategic course of Ukraine: the course of Euro-Atlantic integration under the Constitution. The big driver for the acceleration of this course is the Ministry of Economy: from the first review of the military-industrial complex for the first time since independence, to the usage of all possible tools for cooperation with NATO in order to find effective solutions in the field of economic security.

However, the main task as of today is to reform the security and defense sector, including the military-industrial complex. The review of the military-industrial complex has shown that state-owned defense companies need a radical transformation and support from the state, the transition to a corporate governance model, and the development of mechanisms to attract investment in the industry. Successful implementation of the Annual National Program under the aegis of the NATO-Ukraine Commission will help Ukraine meet the criteria for membership in the Alliance. So let's talk about the progress in this direction.

Technical reequipment and production capacities reconstruction of military-industrial complex's enterprises

The scientific potential of the country allows us to develop and maintain the production of modern pieces of armament and military equipment, for example, projects "Neptune" or "Vilkha". However, appropriate funding is needed to ensure production capacity. At present, technical reequipment is carried out in accord with the tasks and measures of two programs -- "State dedicated program of reform and development of the military-industrial complex for the period up to 2021" and "State dedicated program for creation and manufacturing of ammunition and special chemicals for the period up to 2021".

We at the Ministry of Economy are working on updating these programs for the period up to 2024, taking into account other tasks in this area, set by the President of Ukraine. In addition, we are preparing the proposals for the Strategy of military-technical cooperation project to begin mass production of the latest models of high-tech ammunition and military hardware. Moreover, we have prepared a project Strategy for the development of the military-industrial complex of Ukraine for 2021-2025, as after the approval of the National Security Strategy of Ukraine, all strategic documents must be updated.

Development of the corresponding bills

We are working to eliminate ineffective and burdensome norms of state regulation from the legislation in power. To implement the top-priority tasks of the ANP-2020, the Ministry has developed three important bills. They are aimed at abandoning the system of total burdensome control over all economic entities, improving the principles of state supervision, and unification of the procedure for state control. Also, they are meant to remove restrictions for members of Ukroboronprom to establish joint ventures with foreign participants in order to implement international projects (the latter has already been submitted to the Cabinet of Ministers of Ukraine).

Consultations with NATO

In the interests of the state, the Ministry of Economy is actively attracting advisory assistance from NATO. Towards this, a number of important events are to be held before the end of 2020. Initially, we planned to hold them offline, but the coronavirus situation has made its adjustments. Thus, in October 2020, an online seminar will be held to support the supply and registration of the military-industrial complex in the Catalog of Defense Products. In December the fifth annual seminar on the development of Ukraine’s defense industry with the participation of NATO experts is to take place in Kyiv.

The main tasks of such consultations are the discussion of the mechanisms for implementing the recommendations, based on the results of the Review of the Defense Industry of Ukraine, and taking into account current military-political threats and challenges; issues of life cycle management of ammunition, and military hardware; application of an integrated approach to the quality of military products at all stages of the life cycle; discussion of promising areas of cooperation of defense industry enterprises with various NATO structures; development of policy, that promotes mutually beneficial cooperation between the defense industry and the armed forces.

The annual national program is, first and foremost, our internal work on improvement and transformations.

 

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