РНБОУ National Security and Defense Council of Ukraine

Oleksandr Turchynov: Further reforming of the defense-industrial complex is impossible without the necessary legislative support

One of the main priorities of the NSDC of Ukraine is the reform of the defense-industrial complex, but it is impossible without the necessary legislative support.

This was stated by Secretary of the National Security and Defense Council of Ukraine Oleksandr Turchynov in his speech at the roundtable discussion "Legislative support for reforming Ukraine's defense-industrial complex and raising the level of transparency of the state defense order".

The event, chaired by the NSDC Secretary, gathered together the heads of the Verkhovna Rada of Ukraine Committee on National Security and Defense, the Ministry of Economic Development and Trade of Ukraine, the Ministry of Defense of Ukraine, the General Staff of the Armed Forces of Ukraine, the Ministry of Finance of Ukraine, the State Property Fund of Ukraine, the State Concern "Ukroboronprom", the "League of Defense Enterprises", the National Institute for Strategic Studies, Center for Army, Conversion and Disarmament Studies, "Defense Express" Media & Consulting Company, military experts and others.

According to Mr. Turchynov, without establishing conditions for attracting investments and introducing new technologies, "it is impossible to develop the defense-industrial complex and provide a decent level of state defense capacity". "Without this, it's impossible to create a new generation of weapons and military equipment, to secure place in the competition in international arms markets", - Mr. Turchynov emphasized adding that raising the level of transparency of procurement during the execution of the state defense order will significantly save budget funds and diminish corruption risks.

The NSDC Secretary reminded that strategic decisions on reforming the defense-industrial complex and raising the level of transparency of procurement during the execution of the state defense order were approved at the meeting of the NSDC of Ukraine and put into effect by the Decree of the President of Ukraine of March 6, 2019.

"Without due legislative support, these decisions cannot be fully implemented, therefore, the adoption by the Parliament of a package of legislative acts to ensure the transparency of the defense order, minimize corruption risks, establish conditions for the corporatization of defense enterprises and investment in the defense complex, is now a key issue for the creation of a modern system of management of the defense-industrial complex and its development", - Mr. Turchynov stressed.

During the round table, a package of laws was discussed, the adoption of which will contribute to the implementation of the NSDC decision, ensure the transparency, efficiency and competitiveness of the defense industry, the creation of a new effective system of operation, planning and management of the defense-industrial complex.

The experts supported the legislative acts that deprive "Ukroboronprom" of its uncommon functions of public administration, and ensure the creation of a central executive body in charge of the defense industry. Also, the package of discussed legislative initiatives envisages the promotion of competition in the defense-industrial complex and the rise of the level of transparency of procurement during the execution of the state defense order, allowing to disclose the SDO items, except those containing state secrets.

According to the Chairman of the Verkhovna Rada of Ukraine Committee on National Security and Defense Serhiy Pashynsky, the approved draft law will be submitted to the Ukrainian parliament next week.