State concern “Ukroboronprom” intends to complete under the stated strategy of the reform of the defence sector of Ukraine the gradual restructuring, including audit, by 2020, according to the press service of the state concern with reference to the Deputy Director “Ukroboronprom” Denis Goraka.

“In the autumn “Ukroboronprom” began the process of international auditing. This is the first step to a global transformation of the group under the reform strategy of “Ukroboronprom” in accordance with the best international practices”, – stated in the message.

“The audit will consist of four stages: strategy development, financial audit, legal audit, the implementation of the restructuring and corporatisation”, – says D. Guruk.

According to him, during the reform plan to separate the non-core assets of enterprises of the state concern from the core . “The last corporatized and unite them in a joint holding company by type of activity in accordance with the distribution of five clusters of armored vehicles, aerospace, marine, precision weapons and ammunition, special instrumentation,” he explains.

“For this project, we aim to attract the best talent. “Ukroboronprom” has announced a tender for conducting the “international audit” on ProZorro,” recalls D. Guruk.

“It is expected that since the announcement of the winner (of the tender-if) the whole process will last two years. It is now establishing a project office, which will consist of 20-30 employees from among “ukroboronservice” and auditors-consultants… “Transparency International and a number of partner countries have supported this process and will be independent observers”, he added.

According to the Deputy head of the state concern, in two years, “Ukroboronprom” plans to have restructured the holding company is prepared to sell shares on the open market.

In this regard, D. gurak who also said that “privatization is not the primary purpose of the transformation process, but we understand that this is the logical path for the future.” “Now the government should determine what assets could be privatized, and which are not. We have already initiated before the Ministry of economic development and trade of the exclusion of the majority of the enterprises of “Ukroboronprom” from the list of those not subject to privatization”, – he explained.

“Without the legal and administrative mechanisms existing in the West, we will have very limited opportunities to attract investment”, – stated the Deputy head of “Ukroboronprom”, adding that “now, in many countries there is considerable interest in investing in production, to outsourcing, projects, to buy shares”.

“Taking a course on European integration and NATO membership, we must get rid of all the Soviet legislative issues, go until 2020 to NATO standards, to integrate into the Western political structure and the supply chain,” he concluded.

As earlier reported, Ukroboronprom has announced plans to transfer up to 2020 in full production of arms and military equipment (AME) to NATO standards, as well as plans to reform the defence industry. The main areas of reforms are: corporatisation of the industry, the audit with the involvement of international audit firms, clustering of defense companies, defense technologies, and the launch platform for the development of the defence innovation.

The composition was created in 2010 by decree of the President of “Ukroboronprom” today includes more than 130 enterprises of the Ukrainian MIC, including the state company “Ukrspecexport” and its subsidiaries. In accordance with BP in June 2011 the law of Ukraine, Ukroboronprom jointly with the government manages state objects in the defence industry.

Ukraine links the success of the reform process with the expansion of technological and manufacturing cooperation with the United States in the defence industry, but also counts on the help, including financial, of the American side in the reform of the defence industry in the context of a hybrid war.