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UKROBORONPROM in 2017: Import Substitution – 21 Region and 447 Enterprises

01/15/2018
UKROBORONPROM in 2017: Import Substitution – 21 Region and 447 Enterprises

In the framework of the large-scale program, engaging Ukraine’s regions in import substitution program fulfillment – UKROBORONPROM (UOP) engaged 447 enterprises of various forms of ownership – especially small and medium-sized enterprises – to strengthen the state’s defense capability. 

Starting from 2014, UOP signed 21 memorandum with regional and city state administrations in the field of defense industry. And in the near future, the last four regions – Kyiv, Rivne, Chernivtsi and Donetsk will join the import substitution program fulfillment. 

Each of these memorandums allows to create a platform for continuous dialogue between UOP enterprises, representatives of the Armed Forces of Ukraine and local manufacturers. The Ukrainian defense industry employs 447 enterprises, providing work for more than 200 thousand specialists. 

For example, in 2014, 45% of Russian, 45% -Ukrainian, and 10% of imported spares were used in the manufacture of the latest armored vehicle BTR-4. In 2015 – 0%Russian spares and 35% – imported from other countries, and in 2017 Ukraine independently produces 88% of all aggregates and units for BTR-4, importing 12% only. 

Ukrainian enterprises will receive orders from UOP enterprises-participants for production of components for armament, research and development works in the field of defense, manufacture of military and dual-use products. 

The range of products is constantly expanding; the enterprises mastered manufacturing of components for modern electronic fire control systems, weapons stabilization systems, transfer gear boxes, differentials and other products, requiring the use of high-tech production methods. 

In the import substitution program, UKROBORONPROM concentrated on cooperation with small and medium-sized enterprises; their share – in the total volume of cooperation – now reaches 65-70%. This choice was made due to high mobility of the capacities of small and medium-sized enterprises and their readiness to use modern production methods. That, combined with strict quality control at UOP enterprises and the conditions of open competition, allows Ukraine’s Armed Forces to receive the best Ukrainian products. 

At the same time, UKROBORONPROM sees its role as domestic defense industry integrator, creating common partnership rules, cooperation standards, launching information platform to support Ukrainian companies on the world market and project office for engaging domestic manufactures in innovative defense projects development. 

Signing of the memorandums of cooperation is only the first stage of the work, followed by continuous expansion of the circle of Ukrainian enterprises, involved in the work for defense industry and scaling up the results of this cooperation. 

For example, at the beginning of 2016, only 20 Kharkiv region enterprises were cooperating with UOP enterprises-participants, and now their number increased up to 132. Such dynamics is observed in practically every region of Ukraine. 

Thus, in 2017, UKROBORONPROM made a real breakthrough in the development of the defense industry of Ukraine, transferring hundreds of military equipment and armaments to Ukrainian defenders, completed factory programs for new armament development, deepened partnership with NATO and Alliance member countries, launched practical implementation of the defense complex reform and established new production facilities. 

Date: 
01/15/2018
Countries: 
Sources of Information: 

UkrOboronProm

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