The programme development of the defence complex of Ukraine: billions of dollars in investment and new weapons

In the near future, the Cabinet may approve a new Program of reforming and development oboronno-an industrial complex (MIC) by 2021. According to those responsible for its development officials from MERT, the document has already been agreed with all ministries and submitted for consideration of the Cabinet. But guarantee that the program won’t fail, no, because the same only until 2020 last year and was not approved. And this document determines how to reform the defense industry, to offset the lost in the occupied territories power, and to control foreign investment, which will be spent on the development of new types of weapons. In the Rada promise to monitor the government to, finally, the adoption of the program was a success. In addition, the program should become the basis for the implementation of the Strategic defense Bulletin is sort of an action Plan for membership (map) of Ukraine in NATO – the plan to achieve NATO standards for our security structures to 2020. Last year at the NATO summit in Warsaw Bulletin, presented Petro Poroshenko. And Ukraine can not lose face in the dirt, once again, failing the approval of the program of development OPK.

On January 20, 2016 the government approved the Concept of the state target program of reforming and development of defense industry until 2020.

The document says that the volume of industrial production in 2014 fell by 10.1 percent in the first half of 2015 – 20.5% due to the reduction of economic indicators of enterprises of the military industrial complex. But in 2016, we partially compensated the losses by private companies. According to officials, about 50% of the defense order is realized at the expense of private traders.

“The material damage caused to the Russian Federation because of the destruction of the defense enterprises in Donetsk and Lugansk region, and also the “nationalization” of the illegal seizure of state property in Crimea and Sevastopol are among the important factors that did not allow the defense industry to provide APU and other military units with weapons and equipment” – as stated in the Concept.

Among other things, the document envisages in the first phase (2016-2017): provision of APU restored and modernized military equipment; the system reform of military enterprises; and preparation for serial production taken into service military equipment; restructuring and corporatization of enterprises of defense industry; to identify activities and mechanisms of import substitution.

In the second stage (2018-2020): the production of new samples of armament and military equipment; the complete reform of the defense sector; carrying out research and development work to develop new models and weapons complexes; the increase in volumes of own production are essential to the production of arms, the achievement of full independence from Russia in the production of weapons and military equipment.

All the points of this Concept was the basis of the Program of reforming and development of defense industry until 2020, which, according to the decree of the President and the NSDC decision of may 20, 2016, had to prepare and approve before the end of June last year. But the document never was initiated by the Cabinet and the national security Council, and officials focused on the development and adoption of the Strategic defense Bulletin. As previously wrote “Segodnia” document Petro Poroshenko was presented at last year’s NATO summit in Warsaw. It’s kind of a step by step plan of reforming of the Ukrainian army until 2021. Then the Deputy Minister of defence of Ukraine Igor Dolgov said “Segodnia” that this Bulletin can be considered as a kind of membership action plan in NATO. However, for its full implementation Ukraine lacks the accepted Program of development and reforming of the military-industrial complex.

“Today completed the interagency coordination program for the development of the defense complex until 2021 (the officials decided to shift the implementation of the programme for the year ahead – Ed.). And she will soon be submitted to the government for consideration (according to the “Segodnia” already submitted – Ed.). There we took into account almost all comments of Central Executive bodies”, – said “Segodnia” Deputy Minister of economic development and trade Yuri Brovchenko.

First, according to him, the Program envisages the attraction of investments in the defense industry
from 5 to 10 billion a year. The money mainly will be used for the modernization of defense enterprises, as well as creating new ones to close the loop of production of separate types of arms and equipment (soon the bill will be submitted to the Parliament). Since most of such enterprises in the power cooperation since the Soviet Union remained in Russia or in the Russian occupied Crimea and the Donbas. According to the chief scientific officer at military and military-economic policy of the National Institute for strategic studies Vitaliy Begma, in the occupied territories remained more than 40 such enterprises.

Recovery of lost enterprises and modernization of existing facilities would help Ukraine in the issue of import substitution. “Ukraine still has not got rid of the old principle, when the tip of the triangle was exactly the profits from the export of arms and military equipment, not the development of the APU. In particular, in the de facto war in Ukraine is the situation when some modern weapons and technology in the first place I go to export, and only then in the APU. For example, this situation arose with the supply of new tanks “Oplot”. And only in January 2017, the Cabinet adopted a decision to make on state guarantees (for the first time in the history of Ukraine) new planes, missiles and tanks “Oplot” in the interests of APU“–referred to in the report of Center for army, conversion and disarmament.

Officials immediately retort, they say, the export of defense products is the extra money in currency. According to Deputy Minister of economic development Yuri Brovchenko, if we put one tank for export, for the amount of sales we will be able to repair about 10 tanks for the APU. Besides, in the same report of Center for army, conversion and disarmament experts say that we are importing mainly something that was never made: the majority of munitions, small arms, most of the aviation guided weapons, unmanned aircraft systems, etc. But at the same time, officials did nothing to ensure that everything is produced in Ukraine.

However, according to Yuriy Brovchenko, for almost three years of undeclared war with Russia, Ukraine managed to reach a 80% substitution of armored vehicles. “Here is the main view where there is a very powerful import substitution. Localization of production in Ukraine is for certain types of equipment, including armored vehicles, up to 80%. A large percentage of in aircraft building is now behind the company “Antonov” – she is working on substitution of materials, which at the time was very tight cooperation. Including this for small arms. There we have almost all the modernization happening, I mean the caliber of 23 mm, to 80% made in Ukraine and the countries of the Warsaw Pact (Hungary, Germany, Romania, Bulgaria, Poland – Ed.) who else can supply us with equipment and parts that they have used a similar technique,” – said Yuri Brovchenko.

Officials from the Cabinet promised that this time the Program of reforming and development of defense industry will definitely be accepted. Besides, recently Petro Poroshenko once again reminded of the all-Ukrainian referendum on Ukraine’s accession to NATO. It is clear that before applying for membership, whereas the Alliance with unresolved territorial disputes do not take, but to reform the power structures according to NATO standards Ukraine no one bothers. But this, according to MPs, the same Concepts, Programs and Strategic bulletins will not help. The question must be approached comprehensively, and in the development and implementation of all of these documents should be provided, including the Parliament. According to members of the parliamentary Committee on national security and defence, in the last year on the Committee, the Cabinet presented the Program of reforming and development of military-industrial complex, but to some extent superficially and without taking into account the recommendations of the deputies.

“In order to approve the Concept and Program of reforming of the Ukrainian defense industry, it is necessary first, at least once 100% implemented annual programme in the framework of cooperation with NATO (and we don’t even have a permanent representative mission to NATO – Ed.). Why to us now are drawn to the mission of the NATO in Ukraine, urging them to reform the SBU (among other things, must undergo demilitarization of the organ – Ed.). The same requirements and structure of the Ministry of defense. Must be a new law on intelligence, should be fully provided special operations forces that have stalled. We almost waited a year for a new Strategic defense Bulletin. That is, before talking about the reform of the defense industry, should be the Concept and Program of reforming not only the APU, but for the entire defense spectrum,” said “Segodnia” member of the relevant Committee, MP from NF Andrew Levus.