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Open letter to the President on the first steps of the Ukroboronprom reform

TO THE PRESIDENT OF UKRAINE

Volodymyr ZELENSKYI

Dear Mr. President,

The critical situation that has developed in the defense industry of Ukraine requires urgent resolution and your personal intervention. Lack of transparency, lack of professional corporate governance and corruption, which many well-known journalists wrote about in their investigations, call for urgent actions.

We, military experts, economists and public figures, discussed the aforementioned issues at the round table “What’s Wrong with Ukroboronprom?” Goals and Reforms” organized by the International Centre for Defence and Security, StateWatch, Independent Defence Anti-Corruption Committee (NAKO). As a result of the relevant discussion, we offer you the following plan of priority actions:

  1. Improve corporate governance by business entities of the defense industry in terms of introducing the creation of a supervisory board at the state enterprises through the introduction of appropriate amendments to the Law of Ukraine “On the Peculiarities of Management of State-Owned Property in the Defense Industrial Complex”, the Commercial Code of Ukraine, the Law of Ukraine “On the Management of State-Owned Property” and other normative-legal acts.
  2. Appoint a new Director General and completely renew the composition of the Supervisory Board of “Ukroboronprom” engaging highly reputable and professional people who will perform their functions until the appointment of a supervisory board mostly consisting of independent members.
  3. Conduct an international audit commissioned by the Supervisory Board to audit the “Ukroboronprom” enterprises.
  4. Introduce changes to the defense industry development strategy, which should be considered and approved by the relevant decisions of the National Security and Defense Council of Ukraine.
  5. In cooperation with anti-corruption institutions and specialized experts, develop and approve a new anti-corruption program at “Ukroboronprom” enterprises.
  6. Submit Draft Laws of Ukraine to the Verkhovna Rada of Ukraine: “On Public-Private Partnership in the National Security and Defense Sector of Ukraine” and “On Military-Technical Cooperation”. introduction of amendments to the Laws of Ukraine “On Foreign Economic Activity” and “On State Control over International Transfers of Military and Dual-Use Goods”.

These are just the first steps that must be taken to overcome corruption and enhance performance of “Ukroboronprom” and the entire defense industry in Ukraine. We are ready to assist in their implementation and support you in the issues of reforming such an important sector of the Ukrainian economy as the defense industry.

Best regards,

Initiative Group “For the Defense Industry Reform”

SIGNATORIES

Former Deputy Minister of Defense Yurii Husiev

Statewatch Founder Oleksandr Liemienov

Founder of the Marlin Project Hlib Kanievskyi

Former Deputy Minister of Economic Development and Trade Ruslan Korzh

Secretary General of the Independent Defence Anti-Corruption Committee (NAKO) Olena Trehub

Analyst of the Independent Defence Anti-Corruption Committee (NAKO) Yemchura Taras

Head of Content Policy of the Independent Defence Anti-Corruption Committee (NAKO) Lada Roslytska

Military expert, owner of a private production defense industry enterprise Oleksandr Nosov

Former President of the Association of Weapons and Military Equipment Manufacturers of Ukraine Vadym Kodachyhov

Executive Director of the Investment Company Kostiantyn Lisnychyi

Former Deputy General Director of “Ukroboronprom” Concern Denys Hurak

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