19 March 2021

On Friday, March 26, at 10:30, the Independent Defence Anti-Corruption Committee (NAKO) will present its analytical brief “The implementation of corporate governance principles in Ukraine’s defence industry: from initiative to realization”. The brief includes assessment of the current state of affairs and NAKO’s recommendations for the practical implementation of corporate governance standards at state-owned enterprises in Ukraine’s defence industry. The press-conference will take place at UNIAN news agency (Kyiv, 4, Khreschatyk St.) and online.

More than 100 state-owned enterprises, factories and design bureaus, 6 special exporters with a total number of employees of more than 67 thousand people – that’s how flagship of Ukraine’s defence industry Ukroboronprom, looks like now. State defence conglomerate has accumulated a lot of resources which are not always used effectively, transparently and accountably.

To strengthen the capabilities of Ukraine’s defence industry, increase its global competitiveness and build more efficient enterprises that will be able to supply the Ukrainian army with high-quality equipment,  it is necessary to corporatize Ukroboronprom and implement the international corporate governance principles. This reform is crucial for the national security of Ukraine, Ukraine’s ability to protect its democracy and to move towards the Euro-Atlantic integration.

The need to transform Ukraine’s state-owned enterprises has been widely discussed for almost 30 years so far. However, state-owned enterprises in the defence sector have been excluded from this discourse. Only a few years ago the government moved ahead towards the corporatization of these SOEs.

At the end of 2020, Ukroboronprom started to prepare for the corporatization reform and implementation of the corporate governance principles. In January 2021, Verkhovna Rada supported the draft law #3822 on Ukroboronprom’s transformation. Currently, MPs are actively working on the draft law before the second reading.

During the presentation of the brief, the key aspects of Ukroboronprom’s corporate governance reform will be discussed, including:

  • The role of the state as the Owner, the Regulator and the Policymaker: how to avoid the conflict of interest?

  • The Supervisory Board: how to protect it from political pressures and corruption risks?

  • Introducing the new transparency standards: what are defence enterprises lacking to gain more trust from the society and the international market?

  • Anti-corruption policy and compliance system: what is needed to prevent corruption more effectively?

Participants: 

  • Kristina Kvien, US Chargé d’Affaires ai in Ukraine (online);

  • James Roed-Moor, First Secretary for Political Affairs, British Embassy in Ukraine (online);

  • Olexander Zavitnevych, Head of the Parliamentary Committee on National Security, Defence and Intelligence;

  • Svitlana Panaiotidi, Deputy Minister of Economic Development and Trade (online);

  • Yuriy Gusev, General Director of Ukroboronprom (online, TBC) or Mustafa Nayem, Deputy Head for Asset Management of Ukroboronprom;

  • Olena Tregub, NAKO’s Executive Director;

  • Hlib Kanevsky, Chairman of the expert organization StateWatch;

  • Oleksandr Lysenko, Independent Corporate Governance Consultant.

Moderator: Brian Bonner, Chief Editor of Kyiv Post newspaper.

You can join the event offline or online. To confirm participation, please kindly register following this link.