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18 December, 2019
Cabinet of Ministers Decided to Introduce OECD Standards at Ukroboronprom
On 18 December 2019 Ukraine’s Cabinet of Ministers decided to introduce OECD standards Ukroboronprom, alongside with other 9 big state enterprises.  
It means that OECD model statute which corresponds to the high standards of this organization should be applied to the mentioned enterprises. For example, this statute stipulates reinforcement of the Supervisory Board powers which signifies more independence from the government. So far, Ukrobornonprom has been the big conglomerate of defence member companies which has never implemented the principles of corporate governance. It is governed not by the rules general for state enterprises but by a special law which basically serves as its statute. The key requirements to the state enterprises stipulated by this decision of the Cabinet of Ministers align with NAKO’s main recommendations to Ukroboronprom. Over the last three years we have regularly addressed the need to increase transparency and accountability in the state defence enterprise. Namely, insisted on the effective and independent Supervisory Board.
In parallel to this development, the management of Ukroboronprom has announced the plans for corporatization in 2020. Company’s CEO Aivaras Abromavicius said, ‘We paid special attention to the reform of the enterprise itself and now are heading towards its corporatization. Finally we have all the necessary conditions to implement important reforms. Here I mean effective coordination and full support from the Parliament and the field-specific industries’.