11:04 21.11.2017

Ukroboronprom makes Economy Ministry responsible for decision on future of 61 Communards Shipyard

2 min read
Ukroboronprom makes Economy Ministry responsible for decision on future of 61 Communards Shipyard

Ukroboronprom State Concern has placed the responsibility for the decision on the future of the 61 Communards Shipyard (Mykolaiv) on the Economic Development and Trade Ministry.

"The future of the Mykolaiv shipyard is in the hands of officials of the Ukrainian Economic Development and Trade Ministry as the manager of the state defense order," the state concern said in a statement on Monday, November 20.

According to the statement, the state concern expects certainty from the government regarding the future of the unfinished Ukraina missile cruiser, whether the completion of this military ship is expedient and possible as part of the state defense order, or the government should support the Defense Ministry's proposal on "demilitarization" of the cruiser.

According to the state concern, the state has not compensated for the shipyard's costs for the maintenance of the cruiser since February 2015, bringing the company's salary arrears to about UAH 60 million.

However, Ukroboronprom also does not consider it possible to repay the debt at the shipyard "because of legislative restrictions."

"According to Ukrainian legislation, every enterprise must be profitable. Every plant that is part of Ukroboronprom receives no money from the budget and counts only on its commercial activities," the statement reads.

As reported, in late October 2017, Ukroboronprom reported that the 61 Communards Shipyard was almost idle, as there was no government decision on resuming compensations for the company's expenses on the maintenance of the unfinished Ukraina missile cruiser.

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