Ministry of Defense unveils number of state-owned enterprises meant to be reorganized, liquidated and privatized

At least 42 state-owned enterprises of the Ministry of Defense will be reorganized, 5 will be transferred for privatization to the State Property Fund, and another 44 state-owned enterprises are to be liquidated by 2022, the Defense Ministry reports.

“The Ministry of Defense took into account the remarks and results of the analysis of the performance of subordinate state-owned enterprises conducted by public organizations, and also studied foreign experience in managing military enterprises. In addition, the forecast of the future security environment was taken into account, ensuring the functioning and development of those state-owned enterprises that will meet both modern needs and challenges of the future,” the ministry said.

Thus, enterprises planned for reorganization are important for the defense department, because they are able to economically, efficiently and efficiently work for the needs of the Armed Forces of Ukraine.

“The sector employs thousands of highly qualified narrow-profile specialists. The task of the leadership of the Ministry of Defense is to load state-owned enterprises with orders in the interests of the Armed Forces of Ukraine in time and to ensure their proper funding in order to keep up with the times in terms of technical equipment, professional development of workers and software solutions. The same state-owned enterprises, whose activities are not directly related to the upcoming needs of the defense sector, are planned to be transferred for privatization to the State Property Fund,” the Defense Ministry said, recalling that 15 defense enterprises are located in the temporarily occupied territory in Crimea.

Now the Ministry of Defense of Ukraine has issued an order developed by the Reform Committee, regulating aspects of reforming state-owned enterprises of the defense department. The perspective list of state property entities involved in the performance of the most important functions within the framework of reforming the defense sector was approved.

Also, the department has officially formalized a promising scheme for the functional management of state property objects that belong to the sphere of management of the Ministry of Defense. It is planned that by 2022, 42 state-owned enterprises will remain in the management of the Ministry of Defense, of which 40 are in the functional management of the Main Directorate of Property and Resources, and 2 – in the Main Intelligence Directorate of the Ministry of Defense.