President Zelenskyy signs law on reforming Ukroboronprom

President of Ukraine Volodymyr Zelensky has signed the law on reforming Ukroboronprom, which will complete a long and difficult process of drafting a new legislative framework for the development of the Ukrainian defense industry.

Yuriy Husyev, Director General of Ukroboronprom, posted  this on his Facebook page.

"President of Ukraine Volodymyr Zelensky signed the Law on reforming the State Concern Ukroboronprom. This event completes a long and difficult process of drafting a new legislative framework for the development of the state defense industry of Ukraine. At the same time, this event is a new starting point for the Ukrainian defense," Husyev wrote.

According to him, the signed law will strengthen Ukraine's defense capabilities by structurally resetting 118 separate enterprises of Ukroboronprom, 21 of which are still in the temporarily occupied territories. It will also allow introducing modern approaches to corporate governance, which will protect them from corruption risks, conflicts of interest and direct political influence, allow creating joint ventures with domestic and foreign partners.

In addition, the reform will allow carrying out technology transfer and attracting direct (including foreign) investments in order to manufacture modern models of weapons and military equipment primarily for the needs of the Armed Forces of Ukraine.

As reported, on June 13, the Verkhovna Rada of Ukraine approved bill No.3822 on reforming the defense industrial complex of Ukraine. A total of 256 MPs voted for the draft law.

The document provides for transforming Ukroboronprom into a joint stock company, the sole shareholder of which will be the state represented by the Cabinet of Ministers of Ukraine. At the same time, industry, research and production facilities will be reorganized into economic entities that will be under the corporate management of Ukroboronprom.