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Ukraine is moving toward a systemic renewal of the governance of defense companies. Starting January 1, the State Logistics Operator and the Defense Procurement Agency will be merged into a single enterprise with a new supervisory board.
This was reported by the Minister of Defense of Ukraine, Denys Shmyhal.
The Minister of Defense of Ukraine, Denys Shmyhal, stated that, in fulfillment of the President’s instructions, work is underway to update and form supervisory boards of state-owned defense enterprises. The key decision is the merger of the State Logistics Operator and the Defense Procurement Agency into a single structure as of January 1, which will have a newly established supervisory board.
In the near future, vacant positions on the supervisory board of Ukroboronprom JSC and several other enterprises in the defense sector are expected to be filled.
The Ministry of Defense continues the corporatization process of state-owned companies and their transfer to professional management. According to Denys Shmyhal, of the 90 enterprises that were under the ministry’s authority, 14 have already been transferred to the State Property Fund, and another 11 are in the process of being transferred. Additionally, four enterprises are being transferred to Ukroboronprom JSC.
The minister emphasized that these steps aim to increase transparency and efficiency in the defense industrial complex. Cooperation with private manufacturers also continues to expand to support the development of Ukraine’s defense industry and provide the Defense Forces with the necessary weapons and equipment.
