Oleg Vysotsky, Chairman of the Board of Directors of the RPA «Practika»: Defense industrial complex is the engine of the state’s development, which needs to be filled with big money.

In order for our army to be combat capable and able to respond adequately to modern threats, it is necessary to provide it with modern weapons. And new developments and the development of production require constant investment of funds that are not enough for the public sector of “defense”, nor for private campaigns. This is during the round table “Transformation of the Ukrainian troops. The potential of hidden opportunities “, organized by the League of Defense Enterprises of Ukraine, said Chairman of the Board of Directors of RPA “Practika”, a member of the board of the League Oleg Vysotsky.

According to him, the state of funds, which is depressing in the public and private sectors. The intellectual component of the process of creating new models of equipment and weapons is also not at the highest level, since nobody has made serious investments in the development of domestic science and technologies for the last twenty years. “Therefore, we can not offer new armies today. When there was enthusiasm after the war began, the public sector, which had accumulated money from exports, and private individuals – due to their previous developments – could invest in the development of our products. Today the resources have run out “, – stated Oleg Vysotsky.

The reason for this situation, in the opinion of the head of one of the most successful private company, working for the defense industry of Ukraine, lies in the impossibility for producers to make profits on the sale of their products.
As explained by Oleg Vysotsky, after the repayment of existing mandatory payments (income tax, interest on a bank loan, inflation), during the execution of the contract, losses equal to the planned profit occur. “As a result, we completed contracts, provided the army with decent weapons and equipment, paid workers salaries, but we have not a single penny for developing and investing,” said the head of the RPA “Practika”, one of the main reasons for the unfulfilled capabilities of the Ukrainian Defense Forces .

Oleg Vysotsky also told about the successful initiatives of the League of Defense Companies of Ukraine to improve the situation. At the same time, he emphasized the fact that a certain positive combination of private developers and manufacturers achieved with the state Ukroboronprom. “Through joint actions, we got to the authorities and stated – we need to change something in our defense industry. And Gladkovsky (Gladkovsky Oleg Vladimirovich, First Deputy Secretary of the Council for National Security and Defense of Ukraine, chairman of the Interdepartmental Commission for Military-Technical Cooperation and Export Control Policy – ed.) – the only one who not only heard us, but also reacted to one hundred percent ” – said the member of the Board of the League of Defense Companies of Ukraine Oleg Vysotsky.
A painful question of pricing and a low percentage of profits for private companies involved in the defense and industrial sector was recently considered by the Interdepartmental Commission under the National Security and Defense Council. As Oleg Vysotsky informed, in July a working group should be convened on this issue, the first one is expected in August, and in September the final decision is expected.

During the round table, the representative of the League called on all those involved in the defense industry, officials and people’s deputies to take an active part in making a decision on adjusting the structure of pricing for the products of private companies.
IA “OPK”

07.07.2017