On December 9, the government approved transforming Ukroboronprom into a joint-stock company and reorganizing 43 of its enterprises.
This means that, in the near future, the State Concern Ukroboronprom will cease to exist and a new joint-stock company will be formed in its place. Ukroboronprom’s enterprises will be reorganized into joint-stock companies or limited liability companies. All of them will be 100% state-owned.
As a result of the transformation and reorganization, Ukraine’s defence industry state-owned enterprises will be transformed into modern companies with a corporate governance model and in accordance with the best international standards.
However, much work remains to be done, as the future and success of the entire reform will depend on the quality of corporate governance in the new enterprises and the ability to minimize corruption risks during the transformation process.
NAKO, as a public oversight body, will closely monitor:
- the process of forming the Supervisory Board and governing bodies of the new JSC;
- fixing the standards of corporate governance in the charter of the new JSC;
- the movement of property and assets during corporatization.
We believe that high-quality implementation of the reform will strengthen the state defence industry on the international market and increase Ukraine’s defence capabilities.