On 14 July 2026, Herman Smetanin announced that he was stepping down as Chief Executive Officer of JSC Ukrainian Defense Industry (UDI).
Smetanin has worked in Ukraine’s defence industrial sector since 2014, progressing from an engineer to one of its top executives. During this period, he held positions at the Kharkiv Morozov Machine Building Design Bureau, the Lviv Armored Plant, and twice at the Malyshev Plant.
In June 2023, following the corporatization of the state-owned Ukroboronprom concern, Smetanin was appointed as the first CEO of the newly established Joint Stock Company Ukrainian Defense Industry. However, in September 2024, he left the position to become Ukraine’s Minister for Strategic Industries.
His ministerial tenure ended in July 2025 after the ministry was dissolved and its functions transferred to the Ministry of Defence. He then returned to lead Ukrainian Defense Industry for a second time, serving as CEO for exactly one year until 14 July 2026.
Achievements: Billions in Investment and Increased Production
Smetanin’s leadership, both as Minister and as CEO of UDI, coincided with significant growth in Ukraine’s defence industry and expanded international cooperation.
As Minister for Strategic Industries (2024 – first half of 2025)
- The ZBROYARI initiative mobilized more than USD 1.5 billion for the procurement of Ukrainian-made weapons in 2024, including over USD 500 million through the “Danish model.”
- During the first half of 2025, total funding exceeded USD 2.5 billion.
- Twenty-five major international defence companies launched production localization projects in Ukraine, including opening offices, establishing joint ventures, and licensing production.
As CEO of Ukrainian Defense Industry (2025 results)
- The value of weapons and military equipment produced by UDI enterprises increased by nearly 50%, rising from UAH 122 billion in 2024 to more than UAH 180 billion in 2025.
- The number of state defence contracts grew by more than 50%.
- UDI opened official representative offices in Washington and Berlin, while negotiations on opening an office in Copenhagen are ongoing.
Controversies: Defective Mortar Shells and the Vyshneve Tragedy
Despite these achievements, Smetanin’s tenure was also marked by several major crises and criminal investigations involving Ukraine’s state defence industry.
Defective Ammunition Case (November 2024)
Investigations by journalists Yurii Nikolov and Yurii Butusov revealed that more than 100,000 defective 120 mm mortar shells had been supplied to the Armed Forces of Ukraine. Following extensive media coverage, the Security Service of Ukraine (SBU) accelerated its investigation, which found that the state-owned Pavlohrad Chemical Plant had delivered more than 233,000 defective mortar shells.
Investigators also concluded that the plant’s management had falsified documents by submitting fabricated reports claiming production facilities had been damaged by Russian strikes in order to avoid contractual penalties. The case has since been referred to court.
Ammunition Depot Explosion in Vyshneve (July 2026)
The most tragic incident occurred just one week before Smetanin’s resignation. On 6 July, a Russian attack triggered explosions at an ammunition depot operated by one of UDI’s enterprises in the town of Vyshneve, Kyiv region.
Nine people were killed, while 280 residential buildings—including 253 private houses and 27 apartment buildings—were damaged.
According to the SBU, two managers of state-owned enterprises had authorized the storage of ammunition in violation of legal requirements and contrary to a decision of the Supreme Commander-in-Chief’s Staff. Criminal proceedings have been launched, the officials involved have been dismissed, and a comprehensive safety review of other defence facilities is underway.
What Comes Next?
While the Supervisory Board of Ukrainian Defense Industry conducts an open competition to appoint a permanent CEO, the company will be led on an interim basis by Serhii Boiev.
On 13 July, Boiev resigned from his position as Deputy Minister of Defence, where he oversaw European integration and international defence cooperation. His immediate task as acting CEO will be to stabilize UDI’s operations following the recent crises and ensure the continuity of the company’s activities.