The incompleteness of the law-making process in the field of military-technical and defense-industrial policy is hampering the rearmament and military-technical cooperation of Ukraine with foreign countries, “said Valentin Badrak, director of the Center for Army, Conversion and Disarmament Studies (CTA). In an interview with the information agency “Defense and Industrial Courier”, the expert noted that the analysis of specialists of the Central State Tax Administration of the regulatory framework of the military-technical and defense-industrial policy of the country testifies that the state bodies are not sufficiently consistent and systematically suited to its formation and development.

Drawing on the research of the CACDS, Badrak informed that the above spheres regulated more than 80 laws and by-laws, which since the time of Ukraine’s independence were adopted sporadically, mainly by “trial and error”, under the influence of the political and socio-economic conditions that developed In the country at the time of their putting into operation.

The expert gave examples of inconsistent development of the institutional policy of the state in the aforementioned spheres:

• Formation in 1996, liquidation in 1999 and the re-establishment of the State Export Control Service of Ukraine in 2001;
• Establishment in 1999 and liquidation in 2000 of the Commission on Export Control Policy and Military-Technical Cooperation with Foreign States under the President of Ukraine;
• Formation in 2000 and liquidation of the Committee on Policy of Military-Technical Cooperation and Export Control under the President of Ukraine in 2006;
• Establishment in 2006, but actual inactivity from March 2010 to September 2014, the Interdepartmental Commission for Military-Technical Cooperation Policy and Export Control at the National Security and Defense Council of Ukraine (the Commission’s meetings were not held during the mentioned period, its composition was not renewed);
• Formation in 1999 and liquidation in 2007 of the Commission of the Cabinet of Ministers of Ukraine on military-industrial policy issues;
• Formation in 2007 and liquidation in 2008 of the Commission on military-technical policy and defense-industrial complex under the Cabinet of Ministers of Ukraine;
• Formation in 2008 and liquidation in 2011 of the Agency for Defense and Industrial Complex under the Ministry of Industrial Policy of Ukraine;
• Formation in 2012 and actual liquidation in 2014 of the Committee for the Reform and Development of the Armed Forces of Ukraine and the defense industry complex.

Badrak believes that in the near future fundamental laws should be adopted that would allow for the introduction of systematized and co-ordinated rules for the regulation of the activities of all interested parties and the abolition of duplicate and outdated by-laws. In addition, according to him, regulatory and legal barriers that slow the attraction of investments into the development of enterprises of the defense industry are not eliminated.

In his opinion, the only exception is the scope of export control, which is regulated by the Law of Ukraine “On state control over international transfers of military and dual-use goods” and a number of by-laws adopted in the framework of its implementation, which create a complete, clear, transparent and efficient system. Control export (import) of weapons, military and special equipment.

The head of the CACDS noted that in the sphere of military-technical cooperation there is currently no special law, the need for adoption of which was determined by the Decree of the President of Ukraine dated April 22, 2009 No. 258 “On the decision of the National Security and Defense Council of Ukraine dated March 27, 2009” On the project Law of Ukraine “On military-technical cooperation with foreign states”. In addition, the expert noted, the draft Law of Ukraine “On the Establishment and Manufacture of Armaments, Military and Special Equipment” (registration No. 7520), which was prepared on April 1, was sent to the Verkhovna Rada of Ukraine for further elaboration in the stage of approval by the ministries and departments. Implementation of the Decision of the National Security and Defense Council of Ukraine dated July 20, 2007 “On the Progress of Implementation of the State Program for the Reform and Development of the Defense Company”.

“In 2011, the Law of Ukraine” On the peculiarities of management of state-owned objects in the defense-industrial complex “was adopted as a defensive-industrial law, which brought certain state defense enterprises from the management of central executive authorities and in fact determined that before The defense-industrial complex belong only to the State concern “Ukroboronprom” and state enterprises, organizations and institutions that are part of it “, – said the specialist. He added that the Laws of Ukraine “On Amendments to the Tax Code of Ukraine regarding taxation of enterprises of the defense industrial complex” and “On certain issues of indebtedness of enterprises of the defense industrial complex – participants of the State concern” Ukroboronprom “and ensuring their stable development “Granted privileges exclusively to defense companies that are part of the above mentioned state concern.

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