The League of Defense Сompanies of Ukraine (hereinafter referred to as the League) is a non-governmental profile association of national private manufacturers of armaments and military equipment. Today it includes 71 leading domestic private companies – manufacturers of defense products in the following areas:
unmanned aerial vehicles;
means of radar surveillance and electronic warfare;
means of communication and information protection;
means of radiation, chemical and bacteriological protection;
military electronics and devices;
modernization of military equipment and armament of combat aircraft;
personal weapons and equipment;
simulators and simulators, etc.
participation of League members in effective and high-quality rearmament of the Armed Forces of Ukraine;
protection of the interests of member companies of the League and creation of attractive conditions for their activities;
improvement of public-private partnership in the defense-industrial sphere;
creation of equal conditions for domestic private and state enterprises in the market of armaments and military equipment of Ukraine;
promoting the sale of defense products of member companies of the League in Ukraine and in foreign markets.
History of creation and activity:
The League was established at the end of 2016 to protect the interests of the private defense industry in Ukraine and to represent member companies of the League, which cover various areas of defense production.
2017-2019 became the years of formation of the association, evidence of the need and effectiveness of its existence. In particular, in 2017, at the initiative of the League, the Committee on Defense at the CCI of Ukraine was established – a platform to discuss current issues in the industry and develop decisions that are sent on behalf of the leadership of the CCI to the heads of legislative and executive branches.
Since its inception, the leadership of the League has been conducting an active dialogue with the people’s deputies of Ukraine and the leadership of public authorities. The results of these meetings were the establishment of ties and interaction of the League with the Government and state customers.
Evidence of the recognition of the League at the state level is that the representatives of the Union are involved in the work of interdepartmental commissions and working groups to solve urgent problems of the defense industry, namely:
By the Decree of the President of Ukraine, the General Director of the League was included in the Interdepartmental Commission on Defense-Industrial Complex;
Representatives of the League are included in the composition of the Interdepartmental Coordination Commission on Import Substitution and the composition of the Interdepartmental Commission on Pricing of Military Products;
Liga is invited to lead the creation of an outreach working group for the export control industry;
Representatives of the League are involved in cooperation in working groups at NATO;
The League is involved in the creation of the Educational-Scientific-Innovative Center for Defense-Industrial Complex along with the Ministry of Defense, SC Ukroboronprom, NTUU “KPI named after Igor Sikorsky”.
The League initiates before the authorities the solution of a number of problematic issues of the domestic defense industry:
Problematic issues of financial and economic nature, which include such as:
imperfect pricing system for defense products;
the absence of a special regime for lending to enterprises executing the state defense order by state banking institutions;
inconsistency of the 3-year system of planning of the state defense order with the corresponding terms of financial (budgetary) planning in the state.
2. Problematic issues of regulatory nature:
imperfect regulatory framework for the development and production of defense products;
imperfect legislative and regulatory framework for copyright protection;
so far no attractive conditions have been created for attracting foreign investment in science, technology and innovation and technology;
the regulatory framework for public-private partnerships needs to be improved.
Problematic issues that occur in the implementation of the state’s defense-industrial and military-technical policy:
there are a number of problems associated with the implementation of import substitution measures;
needs to improve the activities of the Institute of General Designers in the areas and types of weapons and military equipment, updating its composition, creating under their leadership an extensive network of chief designers responsible for the components;
lack of available information base on army rearmament programs and technological re-equipment of the defense industry;
lack of a system in determining the priorities of scientific and technical and innovation and technological development.
As a result – the inconsistency of these issues with the areas of military-technical and defense-industrial policy, defined by the relevant documents of state defense planning;
lack of equal conditions between private and state enterprises during the implementation of production development measures;
there is almost no system of standardization and certification, no test and measurement base has been formed.
The Public Union “League of Defense Сompanies of Ukraine” is currently an effective tool for identifying ways to overcome existing obstacles, further improve public-private partnerships in the defense industry.