Ukraine implements reorganization of defence industry

By Defence Industry Europe

Ukrainian President Volodymyr Zelenskyy appointed Herman Smetanin as the successor to Yuriy Husiev, who was dismissed from his position as the head of Ukroboronprom. Smetanin was previously the director of the Malyshev Factory in Kharkiv, known for producing armored equipment.

The reason behind Husiev’s dismissal, according to reports, was the failure to achieve the missile systems program’s objectives. It was anticipated that by May 2023, the production scale of Sapsan/Grom-2 missiles would allow for mass combat use against targets deep within Russian territory.

Furthermore, on June 28, the state-owned Ukroboronprom was formally dissolved, and in its place, the joint-stock company Ukrainian Defence Industry was established, with the state retaining 100% of the shares.


Ukrainian President Volodymy Zelenskyy has tasked Smetanin with three objectives: boosting arms production, curbing corruption within the defence sector, and completing the defence industry reform.

There are also plans to reduce the maintenance costs of the corporation, including trimming the workforce of the management staff.

The establishment of Ukrainian Defence Industry as a joint-stock company should be seen as confirmation of the dismantling of Ukraine’s post-Soviet armaments industry and a further move towards aligning it with Western standards. Paradoxically, Russian aggression has played a role in this process, as the post-Soviet giants of the arms industry have suffered significant damage, and a portion of the engineering and labor force has migrated to enterprises in countries that provide military support to Ukraine (primarily in the Czech Republic, Poland, and Slovakia), where they are gaining experience in new technologies and procedures.



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