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Government launches reform of Ukrainian defence concern

Shmyhal promises that "it's not just a change of sign".

Government launches reform of Ukrainian defence concern

The government has begun reforming the state-owned defence concern Ukroboronprom, Prime Minister Denys Shmyhal has announced at a meeting of the Cabinet of Ministers.

"Today, the government begins the transformation of the state concern Ukroboronprom into a joint-stock company Ukrainian Defence Industry. This is not just a change of sign, this is a reform that has been prepared for a long time even before the start of Russia's full-scale invasion," he said.

Shmyhal noted that a corporate management model should be introduced. It is also necessary to create conditions for attracting investment in the production of weapons, equipment and ammunition.

"We want to build in Ukraine one of the world's most powerful defence industry complexes. This is necessary primarily for our security, but it will also contribute to economic development," Shmyhal added.

Taras Melnychuk, the government's representative in parliament, said on Telegram that the Cabinet of Ministers had established the Ukrainian Defence Industry joint-stock company by transforming Ukroboronprom.

All 100% of its shares belong to the state. The authorized capital of the company was also set at UAH 237.071m, which is formed at the expense of Ukroboronprom's property.

After the war, Ukroboronprom plans to establish production of 125-mm shells in Ukraine. Currently, these shells are manufactured by Ukrainian specialists abroad for security reasons.

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