Ukrainian defense industry in anticipation of a huge deribana

Ukrainian defense industry in anticipation of the "big deribana"
Ukrainian main battle tank produced by "Bulat". Photos from the official website of the Ministry of Defense of Ukraine

All manufacturers of arms and military equipment in the same concern.

In the near future in the Ukrainian military-industrial complex (MIC), weird things are happening. Making steps in the reform of the country's defense industry, which can be considered fairly useful and even necessary, Ukrainian control immediately shows very specific awareness of this sector.

A dream come true gunsmith

That is, as you know, after coming to power in Ukraine Viktor Yanukovych the new management of the country immediately did what under Leonid Kuchma and Viktor Yushchenko remained in dreams or gunsmiths produced only on paper — made a single structure in the face of state concern "Ukroboronprom" that connects the backbone voedinyzhdy defense, coordinates the activities of companies and is responsible for the centralized sale of their products.

Step right impartially, given that the long years of independence Ukrainian defense industry was a certain set of companies and companies united only release of military or dual-use and scattered subordination to different departments. Namely, at the time of the arrival to power of Viktor Yanukovych to the Ukrainian defense industry field applied 161 enterprise, of which in the later disbanded Minprompolitiki included 76 companies, the Ministry of Defense — 44, the State Property Fund — 14, Municipal Space Agency — 13, SC "Ukrspecexport" — 6, the State Service special connection and disk imaging — 4 SBU — 3 and MIA — 1.

The activities of these companies are de facto no coordinated, and the question of survival, they solved without the help of others, without the special help of the country. However, trying to correct the situation, when he was the President of Ukraine Viktor Yushchenko struggled to organize the National Agency for the defense industry and even signed the appropriate order (based on them was not even a decision of the Council of State Security and Defence of 20 July 2007 on the development of the agency). But this initiative, as well as many other impulses Yushchenko, has remained at the level of declarations.

In general, to create a similar structure Yushchenko was not only and not so much a matter of defense, as an attempt to solve a very special issue of the financial flows that go through the defense (which is about 1 billion. Dollars a year). After all, the management of these flows in the Ukrainian defense industry produced immediately by presidential decrees and resolutions of the Cabinet, with all this legislation contained a huge amount of white space that allows you to manipulate money.

Dilemma, which unsuccessfully fought over Yushchenko, swiftly and perfectly decided to Yanukovych, creating a state concern "Ukroboronprom", which included 125 companies. Many Ukrainian experts saw it as a step demonstrated by today's Ukrainian authorities in other areas irrepressible zeal to control all cash flows in the Ukrainian economy. But it's hard to deny the fact that the ordinary, seemingly harsh step was a breakthrough in the development of the Ukrainian defense industry.

STRANGENESS new management style

Together so perplexed style of the new appointed Yanukovych administration CMO. Namely, all exhibited a desire to remove various foreign intermediaries, without going into details of specific contracts. First light scandal (he did not call the severe resonance in the country, of course, only so far as Ukraine is not the essence of it all figured) touched became too famous "Iraqi" agreement for the supply of armored vehicles. If you believe the Ukrainian media reports, the new management tried to remove the defense of the treaty South American intermediary company. Taking into account the fact that the financing agreement in the context of the overall process of upgrading the Iraqi army made the United States, the requirements of Kiev to remove this intermediary initially looked sheepish.

Second oddity is that, fulfilling contracts concluded predecessors, the management of the defense industry's most criticized predecessors everywhere and critics say, under the previous government did not do it, then we provide a real breakthrough in the trade of weapons and military equipment. In fact the biggest arms contracts (namely, for the supply of armored vehicles in Iraq and Thailand) have been concluded under Yushchenko. But today's leaders of Ukrainian defense so far as annoying though it may sound, can not brag comparable in terms of their agreements.

But, like any event, rocked gunsmiths new rules of the game in which the defense — namely, the larger producers of arms and military equipment in the country — has managed a single point. Conviction has added Dmitry Salamatina removal from the chapter "Ukroboronproma" and the purpose of his Minister of Defence of Ukraine, after all the hard defense procurement — a long-standing dream of Ukrainian manufacturers of guns. Previously, he was not superior to $ 200 million in year, in this case the Ministry of Defence has sought to settle or an old technique, or even go into debt. Striking example — the story of 10-ka supply of new Ukrainian T-84 tanks, which were adopted by the sun Ukraine. On the tenth anniversary of Ukraine's independence in 2001, they were held in a stunning military parade in Kiev. Later, this same tank company on new tanks a couple of years served as decoration 72th separate mechanized brigade in white church. And later cars still come back to the manufacturer, because the Defense Ministry has not been able to pay for them.

SMELL huge funds

Some progress and in fact went. As reported Dmitry Salamatin in 2012 on the development of weapons and military equipment, the defense budget is foreseen 2343000000. hryvnia ($ 293 million), with all this 1480000000. hryvnia ($ 185 million) will be allocated to the municipal defense order. But only a portion of these funds are allocated to the general fund of Defense, in other words from the state budget, and some — is on the special fund, in other words, the funds that the army must make for itself. So makarom what specific amount by the end of the year the Ministry of Defense will be able to allocate the purchase of arms and military equipment — still a big question.

Here, the order of the day or got second issue — the privatization of Ukrainian defense industry. This discrepancy in Ukraine has long discussions are, but before all ends just like the story of the State Agency for the defense: if Yushchenko's future privatization read Defense Minister (then — Anatoly Gritsenko), this question ascended to the parliamentary committee meetings, working on his research analysts from the Council of State Security and Defense Council (NSDC). But discussions on the case and decayed.

When the current government on the privatization of the defense industry said first Prime Minister Mykola Azarov, in August last year during visits to GP "Zaporozhye Machine-Building Design Bureau" Progress "to indicate that the privatization of Ukraine's defense industry companies probable, but its criteria are verbovanie strategic investor and preservation of scientific and production potential . "With the influx of investments in this branch of privatization — it necessary … Let us look the companies that went out and brought the average investor who invest great resources in modernization ", — he singled out. At the same time, Azarov said that if the company has a strategic importance for the economy of Ukraine, the Government will consider with special attention the need for privatization.

OLIGARCHS pay the price

It is in this context that Ukraine took at the end of June this year, the head of the mission "Ukroboronproma" Sergei Gromov, former executive director of the Bulgarian rental company Promet Steel, part of the holding "Metinvest" which is controlled by Ukrainian oligarch Rinat Akhmetov. According to the views of Ukrainian professionals, as well as on disk imaging of the sources included in the "Ukroboronprom" companies, the move was made just ahead of a future privatization.

And immediately after the head of the mission Gromov "Ukroboronproma", July 6, 2012, the Verkhovna Rada of Ukraine adopted as a framework law governing debt and development companies in this state concern. That law, "Ukroboronproma", and more precisely — with its companies to write off all the debts for natural gas, electronic and thermal energy, water supply and drainage, also payable to the Pension Fund and the municipal social funds totaling 819 million hryvnia. We agree, it is hard not to link this surfaced in parliament to debate the law on privatization.

In fact, most privatization Ukrainian Defense needs a long time. Although, as international experience shows, a single holding company for the production and sale of guns being in private hands, will focus on the export of arms to the detriment of their production in the interests of national defense. Also — and this is important — it is not clear what specific defense of the companies to be privatized, which will be public-private, and which will go well in your private hands. On reason giants such as members of the "Ukroboronprom" monsters like SE "Malyshev Plant name" or a state-owned enterprise "Kharkiv Machine Building Design Bureau named after Morozov," should belong to the state, and small enterprises (here it is worth recalling, for example, repair works of curving the Defense Ministry, of which the last two years is derived "from the wings" of the military department) and can be privatized.

But almost Ukrainian oligarchs, such as Akhmetov, for example, particularly interested in the "defense detail". Taking into account just as famously in the interests of oligarchs is now working Ukrainian parliament, there is a severe threat that privatization is preparing to reincarnate in a "big deriban" Ukrainian defense industry.

Like this post? Please share to your friends: