Non-governmental Association “League of defense enterprises of Ukraine” in favor of the soonest liberalization of the current system of military-technical cooperation and arms exports: a state monopoly in the system of arms exports, according to the Association, Ukraine loses more than $2 billion annually.
Data evaluation non-governmental Association has voiced in interview to Agency “Interfax-Ukraine” Executive Director “of the League of defense enterprises of Ukraine,” Valentyn Badrak, during the last Wednesday in Kiev, the presentation of products to the private segment of the Ukrainian defence industry military attache of foreign countries .
“The transition of Ukraine from a restraining to a notification, according to the world practice, – the system of arms exports and the creation of equal conditions for the free work on foreign arms markets, how to hospicecare and private defense companies, will allow Ukraine multiples to increase volume of export of arms and military equipment. According to our estimates, the potential export products of the Ukrainian defense industry taking into account the capacity of private defence companies, currently estimated to be more than $3 billion a year: this means that in connection with the state monopoly in the system, Ukraine is losing more than $2 billion annually,” – said the Agency interlocutor.
As explained Executive Director of the League, now numbering more than 150 enterprises in the private sector of the Ukrainian defense industry has a strong export potential, including in segments such as armored vehicles, precision weapons and means of fighting with such weapons, UAV, anti-UAV.
One of the destructive instruments of state monopoly in the military-technical cooperation V. Badrak called the pricing. “Today we have many cases when the promotion to the external market, primarily the new defense products, Rosoboronexport “intervene” in pricing policies: “output” we get uncompetitive, because of high prices, the products,” he said.
This V. Badrak drew that formed in different historical conditions, the state monopoly in the military-technical cooperation of Ukraine in the current conditions “stimulates” the outflow of capital and military technology and inhibits the development of weapons and the process of full re-equipment of the army.
“There are instances when enterprises endure serious production in a foreign country: they can’t trade. Thus, we lose both money and intellectual property,” he said.
Recalling that the current system of military-technical cooperation and arms exports Ukraine was formed immediately after the Budapest summit of 1994, the spokesman said: “Today there is a need to change this system. This is required and geopolitical changes, and the change of scenery around the state and a real military threat to Ukraine. And most importantly – the ability of the Ukrainian defence enterprises to develop and move on.”
Meet the modern realities of the new “rules of the game” in the system of military-technical cooperation and arms exports Ukraine must be fixed in the relevant regulatory framework: first, the impending laws on military-technical cooperation, the production of arms and military equipment, drew B. Badrak.
Created at the end of 2016 non-governmental Association “League of defense enterprises” includes several dozen private defence companies of Ukraine. The main focus of work of the League determined the involvement of its members in the efficient and qualitative re-equipment of the armed forces.
According to the Ukrainian defense Ministry in 2016 in the structure of the executors of the state defense order (SDO) more than 50% came from private defence companies.