Ukroboronprom corporate reform stalled over govt’s decision

14.06.2023, 14:06
Ukroboronprom corporate reform stalled over govt’s decision - Photo

The reform of Ukroboronprom, Ukraine’s state defence company, is stalled because the government is yet to appoint an official to register the new Ukrainian defence industry joint stock company.

Both Ukraine’s strategic industries ministry and Ukroboronprom itself have confirmed that in the letters sent to StateWatch, a think tank.

In December 2021, the government appointed Ukroboronprom’s CEO Yurii Husiev as the chairman of the commission for reorganising the enterprise.

His powers, however, are limited to applying for Ukroboronprom’s liquidation, and the government is to appoint another person to establish a new company.

The respective government decree "does not specify either the person authorised to submit documents for state registration of the company's establishment or the person appointed to the position of the company's director," Ukroboronprom said in a statement.

"This circumstance makes it impossible to complete the process of transforming [Ukroboronprom] into a joint stock company."

Per the reform, which was adopted back in 2021, Ukroboronprom is to be transformed into a joint-stock company fully owned by the government.

The company will also act as a corporate centre responsible for transforming its member companies and attracting investment.

The formal decision to enact Ukroboronprom’s reform by the government was adopted only this March, and made public six weeks later following LIGA.net’s report the reform had started in name only.

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