2019

1. 2019 Activity of private defense enterprises of Ukraine for supplying Ukrainian AF with Armament and military equipment (AME) Reporter: leader of Association DzhalilovRuslanVolodumurovych

2. Supplying Ukrainian AF with AME • Fulfilled work for 5 years • Among delivered modern and national examples of AME, there are only: • A few modern battle and transport aircraft, radar and motor boat; • A limited number of AAS “Osa” and modern armored fighting vehicles such as 4E APC, APC – and Dozor -B; • Few different modifications of armored vehicles such as “Kozak -2,2m”,”Varta”,”Bars -8”and cargo vehicles such as KrAZ and “Bohdana” • Assault antitank weapon ”Stuhna”, “Korsar”, mortars, UAS, UA systems and sniper rifles with different calibers were best supplied; • Military and technical assistance: • HMMWV Hummer, UAS RQ-118 Raven;”PSRL-1”LAW grenade dispensers with 40 millimeters, assault antitank weapon “Javeline”, counter-battery radars AN/TPQ-36/49, signal device Harris with protective and tactical liaison, antisniper systems. • Elaboration: • Self-propelled gun with 155 mm based on KrAZ “Bohdana” is in the process of development; The automated command and control system “Obolon –A” is at the stage of test run; • Elaborated modern rocket missiles for multiple –launch system ; old rocket systems such as antiaircraft systems “Neptun” and “Kub”are being renovated and “Pechora ““C-125” is at the stage of getting results of test run of multifunctional missile system; • there is a manufacturing development of ammunition supplies with 152, 155, 82, and 60 mm; • Restoration: • Restoration of combat readiness of existed and recreated units were thanks to armament of Armed Forces andmaintenance enterprises of Ukraine.

3. Supplying Ukrainian AF with AME • UNFULFILLED WORK: • Modern aircrafts, helicopters, AAS, missile systems, BM “Oplot” and automatized FCS weren’t delivered to Ukrainian Armed Forces; • Decision on production set up and maintenance of over 15,000 supply only with ZRAU classification of Ukrainian AF was not accepted; SPTA sets (individual, class, maintenance) are almost absent and not replenished; • Mass batch production of new armament (supply at the platoon and company level); • Decision on factory building for production of ammunition to rifles and gunpowder etc.. • Maximally focus budget on creation of modern AME examples; • To take actions on deregulation of issues of AME establishing and producing which state and private institutions expected to get.

4. Problems with establishment and renovation of AME Absence of the one Central government body which forms military and technical policy in the country Imperfect rules and regulations Excessiveconfidentialityof issues on statement and completion of defense requirements Lack of strategic personnel policy The existing system of pricing is the deconstructive instrument which influences on the system of AME

5. Proposals Problem: Absence of the one Central government body which forms military and technical policy in the country Solution: To give the right to Defense Ministry of Ukraine in the person of Deputy minister of Defense in the sphere of logistics (armament) to manage AME and satisfy the needs of Ukrainian AF in a modern ,modernized and maintenance AME Problem : Imperfect rules and regulations Solution :To study National system of elaboration ( modernization) , reconstruction and supply of AME based on world’s major economies and which has to be compatible with NATO standards

6. Proposals Problem: Excessive confidentiality of issues on statement and completion of defense requirements; • Solution: • Use 2009/81/EC directives of the European Parliament and Council dated 13.07.2009 for buying goods and services in the defense sphere; • ‘’Prosoro” resource with specific restrictions is widely used for buying goods and services in the defense sphere; • Cancel register of executives of DOZ in Ministry of economic development and trade of Ukraine, selection of executives by market principles; • Remake HOSTy of the Soviet Union into orders of the Ministry of Defense in current economic and community relation.

7. Proposals Problem: The existing system of pricing is the deconstructive instrument which influences on the system of AME. • Solution: • Simplification of formation of calculated material or change into setting prices of products in accordance with the law on Public purchase, namely according to results of bidding procedure; • Prices are set in accordance with results of monitoring over prices on similar products (services) on internal and external markets of armament.

8. Proposals Problem: Lack of strategic personnel policy Solution: Completely demilitarize posts of the Ukrainian Ministry of Defence and implement public control through contest in order to choose the candidates for the positions on account of: • Reserve officers (experts) • Experts of other fields (to pass the positive working experience) • Develop criterions on recruitment and organization of its preparation • Join international experts Set up the system of the ongoing education for all- ranked officials.

9. ActivityofAssociation • Association is non-government, unprofitable public union, which has already existed for 2 years. • Fulfilled work for 2 years of activity • 85 private defense enterprises are united ( 13 enterprises were at the beginning ); • The initiated actions of the liberalization of foreign economic activity gave the right to export and import military goods and classified goods since 2017; • 42 firms were allowed to export military goods of own production and import military goods for their own production independently. • Ukroboronprom (UOP) was finally excluded from the number of controlling organizations and which had the status of economic agent market participant; after all it had the power to give other economic agent market participants the right to carry out a foreign economic activity (directive KMY№805 dated 29.08.2018); • 30 projects on development of modern and modernizing of the existed AME examples are completed, 26 projects are on the different stages of elaboration and test; • There was a military and technical cooperation, namely the memo on cooperation was signed with 30 partner countries. Participation in 7 international expositions of armament and military equipment; • The elaboration of directives of order implementation of Directive KMY№345 was initiated in front of MOU in the middle of 2017.

10. Activity of Association • Perspective tasks • To include the Association representors to interdepartmental committee on policy of military and technical cooperation and the export control; • To establish commercial institution ‘’Defensive enterprises of Ukraine” which is to be THE FIRST PRIVATE SPECIAL EXPORTER in Ukraine  • To continue supplying Ukrainian AF with modern AME examples: • To improve automation of management systems of forces (units) and AME examples at first hand. • To increase supply of units with UAS, namely multi-rotary and quadcopter systems for units (platoon-company-battalion); • To continue work on modernization and maintenance of the rest necessary AME nomenclature.

11. UAV systems

12. UAV systems

13. Robot ground system

14. Developing of modern and modernization of existed AME examples

15. Developing of modern and modernization of existed AME examples

16. Developing of modern and modernization of existed AME examples

17. Developing of ground robot system

18. Developing of modern and modernization of existed AME examples

19. Thank you for attention Association of Ukrainian Defense Manufacturers Асоціація виробників озброєння та військової техніки України 01054, м.Київ, вул. Януша Корчака, 12, office@audm.org.ua тел.: +38 (044) 591 15 75, моб: +38 (097) 842 10 05