Zelenskyi put NSDC decision on aircraft construction development into effect

President of Ukraine Volodymyr Zelenskyi has put into effect the decision of the National Security and Defense Council of June 4 "On the development of the aircraft industry in Ukraine."

The relevant decree №68/2021 is posted on the President's website, Rubryka reports.

Control over implementing the decision of the National Security and Defense Council, enacted by this decree, is entrusted to the Secretary of the National Security and Defense Council Oleksii Danilov.

The decree comes into force from its publication.

On June 4, the National Security and Defense Council, considering the situation in Ukraine's aircraft industry, and to ensure national security, aircraft industry operation, the concentration of intellectual, technological, economic potential, and human resources, improving their use, entry of Ukrainian aircraft into international markets, considering the need to strengthen the role of national enterprises in the tasks of providing security and defense forces with new and modernized aircraft, instructed the Cabinet of Ministers to update the action plan for implementing the Strategy for the revival of domestic aircraft until 2030 within a month, approved by government decree of 10 May 2018 № 429-r, to secure:

• development of production, design, research and human resources, creation of production of competitive aircraft, in particular by concluding agreements on strategic cooperation with foreign partners in aircraft construction and taking other measures to promote national aircraft industry products in foreign markets;
• improvement of the organizational structure of the aircraft industry management;
• import substitution in the aircraft and helicopter industries.

Within a month, the Cabinet of Ministers is also instructed to approve:

• the State target scientific and technical program for developing the aviation industry for 2021-2030;
• a plan of anti-crisis measures for financial recovery and restoring effective operation of the Kharkiv State Aviation Production Enterprise, which provides the expansion of interaction between state and business and creation of conditions for public-private partnership in addressing the operation of the enterprise.

In addition, within a month, the government has to work on:

• opportunities for implementing long-term large-scale projects that can give impetus to aircraft industry development in Ukraine, such as "Air Launch" and "National Air Carrier";
• implementing mechanisms to stimulate operators of aircraft type An (leasing, compensation of the National Bank of Ukraine rate on loans, using the tax benefits, in particular in terms of exemption from value-added tax).

The government should also ensure the preparation of draft legislation to support the aircraft industry, in particular, aimed at:

• increasing the investment attractiveness of aircraft industry enterprises;
• introducing financial instruments of state support of aircraft construction enterprises;
• reducing costs for upgrading aircraft of domestic airlines on leasing operations;
• providing state support for the export of domestic aircraft products.

The Cabinet of Ministers is also instructed to accelerate the implementation of the corporate governance model by corporatizing state-owned enterprises in Ukraine's aircraft industry.

The Ministry of Defense should consider including tasks to upgrade the fleet of MoD aircraft and helicopters in the State Targeted Defense Program for armaments and military equipment development, including combat aircraft, helicopters, multi-purpose unmanned aerial vehicles, military transport aircraft An-74 and An-178.

The Ministry of Foreign Affairs together with the Ministry of Strategic Industries is entrusted with:

• assisting in the promotion of domestic aircraft industry products in foreign markets, as well as searching for potential partners to integrate Ukraine into the global aviation industry;
• taking measures under the established procedure for concluding agreements on strategic cooperation with foreign partners in aircraft construction in 2021, providing further support for international cooperation development under certain programs in compliance with national interests.

The Ministry of Strategic Industries of Ukraine together with the National Academy of Sciences of Ukraine should take measures to:

• create import substitution of aviation products, including special-purpose bearings, electronic components, in particular, within paragraph 4 of the decision of the National Security and Defense Council of Ukraine of March 11, 2021 "On the main indicators of the state defense order for 2021 and 2022, 2023" in effect by the Decree of the President of Ukraine of March 30, 2021, № 132;
• form national certification structures, tests, expert structures for detecting counterfeit products and determining conformity and interchangeability of components and materials of critical import, decision-making on including relevant tasks in the project of the State target scientific and technical program of aviation industry development for 2021-2030.