On 17 July 2025, the Verkhovna Rada of Ukraine appointed Denys Shmyhal as Minister of Defence. Shmyhal had previously served as Prime Minister from 2020 to 2025. He replaces Rustem Umerov, who had led the Ministry of Defence since 2023. This change is part of a complete reshuffle of the Cabinet of Ministers.
Addressing the Verkhovna Rada, Denys Shmyhal outlined his key priorities as Defence Minister: providing high-quality support to the military, increasing domestic arms production and improving the Ministry of Defence's decision-making processes to make them faster and more flexible.
The Independent Anti-Corruption Commission (NAKO) welcomes Denys Shmyhal’s appointment and wishes him success in his new role. NAKO will continue to monitor the ministry's activities, particularly with regard to reforming the security and defence sector.
Initially, former Minister Rustem Umerov was considered for the post of Ambassador to the United States. However, according to media reports, the current candidate for this position is Olha Stefanishyna, the former Deputy Prime Minister for European Integration. Umerov is now expected to be appointed Secretary of the National Security and Defence Council.
As part of the government restructuring, the Ministry for Strategic Industries has been merged with the Ministry of Defence. Herman Smetanin, who previously led the Ministry for Strategic Industries, is expected to return to his position as Director General of the Ukrainian Defence Industry.
The Ministry of Strategic Industries was established in 2020. At that time, NAKO analysed the feasibility of creating a separate ministry responsible for managing the defence-industrial complex. Drawing on NATO, EU and Ukrainian experience, NAKO criticised the idea due to the risk of excessive power concentration, duplication of functions, the inefficient use of public funds and unfair competition in the defence sector.
At the time, NAKO noted that NATO and EU countries do not have separate ministries for defence industries. Instead, their focus is on strengthening cooperation between the public and private sectors and developing high-tech, innovative solutions.
Therefore, meaningful reform of Ukraine’s defence industry does not require the establishment of a separate ministry. It is crucial, however, to implement corporate governance standards that align with international best practices, focusing strongly on transparency and competition.
'NAKO previously warned against establishing the Ministry for Strategic Industries, as the state simply could not afford it amid the prolonged crisis and war since 2014. We emphasised that Ukraine’s defence industry could be transformed without a new ministry. What matters is making the right decisions, drawing up the right documents and engaging competent experts. In any case, we will continue our work,' said NAKO Executive Director Olena Tregub.
