Ukroboronprom being transformed into JSC Ukrainian Defense Industry - PM

MOSCOW. March 22 (Interfax) - The Ukrainian government is starting to transform the Ukroboronprom state-owned defense company into JSC Ukrainian Defense Industry, Prime Minister Denis Shmygal said.

"This is not just a change of the signboard, it is a reform that has been prepared for a long time. Today, we more than ever need efficiency in the defense industry. We need to introduce a corporate governance model. We need to create conditions to attract investment in the production of weapons, equipment and ammunition," Ukrainian media quoted Shmygal as saying at a government meeting on Tuesday.

These changes will also allow Ukraine to strengthen cooperation with Western partners, he said.

"In Ukraine, we want to build one of the most powerful defense industries in the world. This is necessary primarily for our security, but it will also contribute to the economic development and recovery of the Ukrainian economy," the prime minister said.

The government's representative to the Verkhovna Rada Taras Melnichuk, for his part, said on social media that JSC Ukrainian Defense Industry, which is 100% owned by the state, has been formed via the reorganization of Ukroboronprom. The new joint stock company's charter and the provision on its supervisory board have been endorsed.

The new company's charter capital, which consists of Ukroboronprom's assets, has been approved at 237.071 million hryvni.