The Center for the Study of Army, Conversion and Disarmament together with the Institute of Legislation of the Verkhovna Rada of Ukraine and the Geneva Center for the Democratic Control of the Armed Forces summed up the results of the International Conference “Legislative Provision of Parliamentary Control in the Defense Industrial Complex of Ukraine”, which was held on March 14, 2018 in Kyiv. As a result, an appeal was made to parliamentarians:

Concerning the further development of Ukraine’s defense industrial complex (defense industry)

On March 14, 2018, an international scientific and practical conference “Legislative Provision of Parliamentary Control in the Defense and Industrial Complex” was organized at the Institute of Legislation of the Verkhovna Rada of Ukraine, organized jointly with the Center for Army, Conversion and Disarmament Studies and the Geneva Center for the Democratic Control of Armed Forces. The conference was attended by heads of executive bodies, people’s deputies of Ukraine, well-known scholars, industrialists, representatives of foreign diplomatic missions, the public and mass media (see Voice of Ukraine, No. 51 dated March 20, 2018 and No. 59 dated March 29, 2018). )

During the discussion, its participants presented analytical materials and proposals aimed at further development of the defense industry and its adaptation to NATO standards, which are as follows.

Foreign economic activity

Withdrawal of the existing prohibition in the Ukrainian legislation for the creation of joint with foreign partners of the enterprises will ensure the entry of powerful investors into the Ukrainian market.
Providing enterprises of all forms of ownership the right to carry out foreign economic activity under the supervision of the state, but without the obligatory appeal to special exporters with the introduction of state certification of production.

The right to import weapons and military equipment on its own will reduce the actual costs by approximately 5-7%, which are deducted as commission special exporters.

The problem can be solved by introducing appropriate amendments to the Law of Ukraine “On State Control over International Transfers of Military and Dual-Use Goods” (No. 549-IV), as well as the Regulation on the Procedure for Granting the Power of Exercise of the Right to Export to the Subjects of Foreign Economic Activity, import of military goods and goods containing information constituting state secrets, approved by the Resolution of the Cabinet of Ministers of Ukraine No. 838 dated 08.06.1998.

Formation and execution of state defense orders (DOS)

Legislative support for attracting private entrepreneurs to the realization of the tasks of the defense industry and development of public-private partnership.
Provision by the state of financing the preparation of serial production of defense products at enterprises of all forms of ownership if included in the DOS.
The consideration of monetary rewards in the implementation of development, technologies in mass production (royalty payment) to enterprises – developers of weapons.
Improvement of the activity of military missions with their concentration on the quality control of products and the withdrawal from the functions of the military reception of the reconciliation of calculation and costing materials.

Development of defense technologies

Inclusion in the state defense order of scientific research aimed at the creation of new types of weapons.
Establishment of a government agency with a special status, such as the Office of Advanced Research Projects of the US Department of Defense (DARPA), in the structure of the Government, assigning to it a definition of promising developments in the field of security and defense and providing scientific and analytical substantiation of all issues of development of the defense industry, including certification and the transition to NATO standards.
The Cabinet of Ministers of Ukraine develops the principles of a national system for certifying weapons of mass destruction according to the standards of the North Atlantic Alliance and targets the establishment of a network of laboratories for testing domestic weapons manufactured according to NATO standards.

Directorate of defense industry
Establishment of a single government body for the management of the Defense Ministry (State Agency) – a central executive body subordinated to the Deputy Prime Minister, due to the presence of 16 customers in ministries and departments. This body is called to form and implement a state military-industrial policy, to dispose of budget funds and to identify legislative initiatives, as well as to form the general need of all law enforcement agencies, to be responsible for the introduction of new technologies, the creation of joint with foreign partners of productions, the unification and standardization of weapons, including the creation network of test laboratories.

Forming a Government Interdepartmental Commission on rearmament of the Armed Forces of Ukraine and other military units from entering their composition representatives of the Ministry of Economic Development and Trade of Ukraine, the General Staff of the Armed Forces, Ministry of Defense of Ukraine, Security Service of Ukraine, the State Border Service of Ukraine, the Foreign Intelligence Service of Ukraine defense intelligence of Ukraine, the State Space agency of Ukraine, SC “Ukroboronprom” and NGO “League of defense of Ukraine», NTU “in Kyiv Igor Sikorsky Institute of Liègechnics “.
Modernization Law of Ukraine “On the State Defense Order” and the Law “On the creation and production of ammunition, weapons, military and special equipment”, “On military-technical cooperation Ukraine and foreign countries”, “On Offset Agreement” (now the offset agreement excluded from the terms of contracts before the end of ATO, but legislative support for this issue requires the need for compliance with EU Directive 2009 and the world volumes offset agreements in 2016 amounted to 430 billion. to .) “On public-private partnership” (the latest version of the draft law “On guaranteeing the rights of investors and attract private investment on terms for a mechanism of public-private partnership in the defense-industrial complex”).

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