Military Industrial Complex in Ukraine

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Ukrainian tanks, Kharkiv plant im. Malysheva

Military Industrial complex of Ukraine (Ukraine MIC) or also called Defense complex (Oboronno-promyshlenniy kompleks, OPK) is a set of research, testing organizations and industrial enterprises that perform the development, production and accepting to army machinery, aircrafts, and special equipment, ammunition for both the Ukrainian armed forces and for export. And we will now talk about former pride and achievements of Ukrainian MIC and will estimate its available modern potential and ways of developing referring to current difficult situation in the world.

If we appeal to history, we will se how important role plays Ukrainian MIC in total defense network of military companies of USSR. It seems that government of Soviet Union payed most scrupulous attention to Ukrainian Republic bothered of utilization of its military potential more than of other republics of Union.

Prehistory

Ukraine has a powerful defense industry, which is capable of producing a large range of high-tech products. At the time of independence of Ukraine the Ukrainian defense included more than 3,500 enterprises, employing about 3 million people. On Ukrainian territory was concentrated around 40-60% MIC of USSR(!). In purely military production were involved in 700 companies, including 205 production units and 139 research and production associations with a total of 1.45 million people employed. Ukraine inherited almost a third of the space industry in the former USSR (FSU). In activities related to space was directly involved 140 enterprises and institutions that provided employment to 200 thousand people. Among twenty types of intercontinental ballistic missiles of FSU twelve had been developed and manufactured in Ukraine. You`ll agree, that`s huge possibilities.

Ukrainian military industrial potential

Earlier in the factories of Ukraine annually manufacture up to 350 aircraft. In Ukraine placed 11 aircraft repair plants that serve all types of aircraft and helicopters produced in the former USSR. Ukrainian Research Institute were related to 17 of 21 "critical technologies" that developed in the former USSR. Among them the entire set of problems for electronics and cybernetics, stealth detection purposes radar stations, laser equipment, new production technologies. There are more than 50 research and production associations, which engaged not only in the development of new technology, but also modernization of outdated located in Ukraine. And from late 70th engaging to Defense complex in USSR had been increasing.

But with obtaining of independence, Ukraine is systematically losing its positions and just using old legacy. MIC of modern Ukraine is oriented for maintenance of self military engineering mostly. Since 1991 there were open a nary of Defense complex enterprise.

Ukrainian tanks, Kharkiv plant im. Malysheva

The Stockholm International Peace Research Institute (SIPRI) in the report for 2012 identified Ukraine as a country of 4 place in the world largest supplier of arms. According to SIPRI, Ukraine last year put on arms exports to $ 1.3 billion Despite the fact that our country occupies a significant position in this field according to experts share of weapons that were designed and produced for years of independence does not exceed 20%. All the rest deliveries are made from old Soviet stockpiles. In particular, it was supplying parts components and assemblies that make up the lion's share of Ukrainian exports of military products. Ukrainian plants produce many samples of military equipment, successfully competing with foreign producers. For example, GKKB "Ray" produces high-precision weapons, SJSHC "Artem" produces aircraft missiles "air-to-air" type, CDB "Arsenal" produces the head for homing missiles. A "Telecard-device" and NGO "Aerotekhnika" famous modern means of communication and radar systems. estimated Ukrainian experts MIC is able to bring into the coffers of more than 2 billion dollars a year.

Perspectives of Military Industrial complex

Decrees of the President of Ukraine № 1085/2010 and number 1245/2010, Cabinet of Ministers of Ukraine of 29.12.2010 № 1221 and № 1 993 dated 31.08.2011 was established the State Concern "Ukroboronprom". This step of pr. Yanukovich was intended to centralize and to simplify the further governmental investments and support of MIC. But this good initiative hasn`t been completed till now.

April 6, 2011 the Cabinet of Ministers of Ukraine in the decree № 374 "On Amendments to the Cabinet of Ministers of Ukraine № 1221 dated December 29, 2010," approved the list of state-owned enterprises, which became part of the State Concern "Ukroboronprom." 

The composition of the State Concern "Ukroboronprom" includes 134 state-owned enterprises (125 and state government, as well as nine public companies, management of corporate rights which were transferred to the "Ukroboronprom"). Also included in the State Concern State Company for export and import of products and services for military purposes "Ukrspecexport" and its subsidiaries.

To optimize the operation of state concern June 16, 2011 the Verkhovna Rada of Ukraine adopted the Law of Ukraine "On peculiarities of state property management in the military-industrial complex".

As we can see, some real legislative work was established. But for real reforms and modernozation of full complex there was a lack of money. The attraction of investitions is the most acute problem by now as it up to 80% of manufacturing base of Ukrainian MIC is worn out and produce a sufficient percent of spoilage.

Another delicate moment is relatedness between Ukrainian and Russian MICs. Not only Russians import sufficient percent of our production (real numbers are secret) but also we have too big shares in mutual military projects. Russian MIC without details from Ukraine can produce only 20% of total potential. And this situation woun`t be changed cardinally till 2018. Our planes of Antonov plant also depends up to 60% from production of Russian companies. And it would be total collapse to Ukrainian MIC. Because it would lose the only source of money earning and topmost partner. Ukraine has no their own state order and without it there is no way to produce and realize its military production for the moment. Such giants as Zaporozhye "Motor Sich", Kharkov machine-building plant FED, Kiev serial plant "Antonov" and Dnepropetrovsk plant "Pivdenmash" will become unclaimed without cooperation with Russia.

Military industrial perspectives of Ukraine in modern terms
But the first step to suicide is taken. June 16, 2014 the President of Ukraine Petro Poroshenko forbade any cooperation with Russia in the sphere of military-industrial complex. Voila, under the screen of Russian military aggression Poroshenko aiming to reorient Ukrainian Defense complex to Western market and partnership. This is very dangerous and imprudent step which can totally eliminate our MIC. This is or absolutely non-pragmatic and clueless activity from Ukrainian "president", or part of a very dangerous screenplay for Poroshenko as a Western puppet. I just name possible variants, and you to decide what`s happening.

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