CEA Creation and SDO Formation Improving are Key Issues of the Defense Industry Reform

In the military-industrial environment and in expert circles the problem of creating a Central Executive authority (CEA) as a structure to implement the defence industrial policy and the problem of perfection the system of formation and execution of the State Defense Order (SDO) are debated for a long time, which directly affects the Defence capability of Ukraine and on rates of the State Defence Forces rearmament.

In particular, experts since 2013 (system calls have been issued since the 2013 parliamentary hearings) insist on the need to create a new CEA and improve the situation around SDO, referring to the one adopted in the summer of 2018 Law of Ukraine “On National Security”. In addition, the comments relate to the strengthening of Ukraine’s potential in attracting investment and obtaining new defense technologies, and would also protect the Defense Industry of Ukraine from alternative domestic imports of weapons and military hardware (WMH). Until this time, Ukraine was criticized by Western experts for “manual control” of the Defense Industry.

In order to further study the problems and ways to solve them, CACDS has initiated a meeting of the Expert Council and invited experts in this field, as well as current managers. The meeting was attended by the deputies of the Verkhovna Rada, the State Enterprise “Ukroboronprom”, the National Strategic Studies Institute, the Center for Army, Conversion and Disarmament Studies, Information and Consulting Company “Defense Express”, SU “League of Defense Companies of Ukraine”, Ukrainian Public Human Rights Movement “Force of Law,” SU “All-Ukrainian Public Centre of National Security,” Independent Anti-Corruption Committee on Defence, SU “Ukrainian Strategic Initiative”, Fund “Free Ukraine” and individual experts.

Experts point out that the transfer of decision-making center  in the Executive branch and end of defence enterprises “manual control” in Ukraine  would determine politically responsible for the Defense Industry in the country to implement the reform of the Defense Industry and improve the investment climate, and to improve approaches to such matters as coordination of the work of Defense Industry Enterprises in order to accelerate and improve the pace and quality of modernization.

In connection with the above, the Expert Council considered the optimal conditions for  CEA creating and SDO improving.