Kiev. February 9th. INTERFAX-UKRAINE – The draft law on licensing economic activities in the development, production and sale of arms and military equipment (WME), submitted by the government in January to the Verkhovna Rada, will be finalized in terms of ensuring the interests of private defense companies and creating a transparent competitive environment in the Ukrainian defense market.

Valentin Badrak, director of the Center for the Study of the Army, Conversion and Disarmament (CIACR) Valentin Badrak, told Interfax-Ukraine that the decision was taken following the consideration of Bill No. 5698 “On Amending the Law of Ukraine on Licensing Species Economic activity “regarding the implementation of economic activities in the development, manufacture, sale, repair, modernization and utilization of weapons, military equipment, military weapons and combat Supplies to him “at a meeting of the Committee on Industrial Policy and Entrepreneurship held on Wednesday.

As V. Badrak noted, the committee took into account the analysis of the bill, carried out by CIACR and the League of Defense Enterprises, sounded during the meeting.

“The majority of participants in the meeting, including the head of the committee Victor Galasyuk, agreed with the need to simplify the mechanism for obtaining licenses in order to exclude the possibility of creating corrupt schemes when renewing the revoked in 2015, licenses for IWT,” the source said.

“The reality is that a license can be obtained for years,” he said. “In addition, and this was underlined by private defense companies, which now produce 2/3 of the annual volume of defense products, licensing, in fact, duplicates the existing system of state supervision in the defense industry: it works with the registration of a defense enterprise, with the organization of secrecy, in determining Responsibility for violation of the conditions of production and sale.Also, any transfer or sale of weapons and military equipment is impossible without passing the procedure for military acceptance and determining the results of departmental tests, “explained Director of CIACR.

As the expert emphasized, taking into account the long-term nature of the challenges of the country’s defense capability and the new geopolitical situation in the world, a legislative framework adequate to the new realities should be formed in Ukraine to ensure the effective operation of the national defense industry as one of the priorities of the security and defense sector, taking into account the interests of private defense companies And creating a transparent competitive environment in the Ukrainian defense market.

Following the meeting of the parliamentary committee, it was decided to establish a working group to finalize the bill N5698 with the participation of private enterprises of the OPK and independent experts, said V. Badrak.

As reported, Bill N5698, which provides for licensing of employment in the IWT field, was developed by the Ministry of Economic Development and Trade (MEDT) pursuant to the decision of the NSDC of May 20, 2016 “On Measures for the Development of the Defense Industry of Ukraine”, enacted by the presidential decree of August 2, 2016.

Created in late 2016, the non-governmental organization League of Defense Enterprises unites several dozens of private defense companies in Ukraine. The main direction of the work of the League is the participation of its members in the effective and qualitative rearmament of the APU.

According to the Ukrainian military department, in 2016, private defense companies accounted for more than 50% of the GOZ executors.