Ukroboronprom expects coordinated policy on reforming defense sector from new government

The State-run Ukroboronprom Concern expects that the government formed this week will pursue a coordinated policy in implementing the strategy for structural reform of the domestic defense industry.

"The implementation of the plans to reform the defense industry requires a systematic and coordinated public policy, and the state concern expects that the new government will be able to avoid controversy in approaches to its content and implementation," a source in Ukroboronprom told Interfax-Ukraine when commenting on the tasks announced by the president at a recent meeting of the Council of Regions for the deep modernization of the defense industry in 2013.

He recalled that the strategy for structural reforms of the industry approved by the state concern earlier envisages the corporatization of the industry by the end of 2014. The government is currently preparing proposals to restructure enterprises of tank and armored vehicles construction," he said.

"Together with the Defense Ministry the company started the work to conduct the financial and economic analysis of the defense industry enterprises, as well as the existing contracts, primarily export ones. The work on the evaluation of assets will continue," the source said recalling the laws passed by the parliament in fall ordering restructuring of debts of Ukroboronprom.

According to the source, the issue of the further privatization of the defense industry is currently being discussed. They believe that the privatization will help get investments for renovation of basic production assets of the industry and the development of technology, he said.

Meanwhile, the formation of an adequate defense order remains one of the key tasks for the development of the defense industry and the Armed Forces of Ukraine, the source said.

The agency's interlocutor found it difficult to forecast the changes in the management of the defense sector in connection with the restoration of the Industrial Policy Ministry of Ukraine.

Earlier this week, the president replaced Dmytro Salamatin with Pavlo Lebedev in the post of the defense minister.

The newly appointed Deputy Prime Minister Yuriy Boiko should name the candidate for the post of the industrial policy minister.