11 Nov 2022 14:18

Ukrainian govt to set up JSC Ukrainian Defense Industry

MOSCOW. Nov 11 (Interfax) - The Ukrainian government has drawn up a draft resolution on establishing a new joint-stock company to be known as Ukrainian Defense Industry.

Ukraine's National Securities and Exchange Commission said on its website that it approved the plan at its meeting on Thursday.

Any other information is currently absent, but Ukrainian media outlets have said that the new company will replace the Ukroboronprom state-run company as a result of its reorganization, hence the similarity between the names of these two companies.

The Ukrainian government will control 100% shares of JSC Ukrainian Defense Industry.

As reported, the government decided in December 2021 to transform the Ukroboronprom state-controlled company into a joint-stock company and agreed to reorganize its 43 strategic subsidiaries into enterprises under complete state control.

Prior to that, in July, the bill on reform Ukroboronprom was adopted and was signed by the Ukrainian president into law. Ukroboronprom head Yury Gusev said in October 2021 that the planned measure would help reboot Ukroboronprom's 118 stand-alone enterprises, 21 of which were then in territories that were not controlled by Kiev.

The idea was to transform Ukroboronprom into two large holdings - Defense Systems of Ukraine and Aerospace Systems (provisional names, the second holding would be created jointly with enterprises from the State Space Agency of Ukraine). Meanwhile, six and three sub-holdings, respectively, were expected to appear inside these two holdings. The first holding would include 13 armored hardware enterprises, ten enterprises making radar systems, specialized chemicals and ammunition enterprises (7+1), enterprises making precision-guided weapons (15), and seven aircraft repair enterprises. Meanwhile, the second holding would consist of the Antonov enterprise, Aircraft Engine enterprise and Pivdenny Rocket and Space Center (provisional names).