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The Cabinet has approved amendments to the Law of Ukraine "On State Budget of Ukraine 2013." The Ministry of Economic Development and Trade said the state will have the capability to provide security for obligations of the participating enterprises of the State Concern Ukroboronprom and the joint stock companies under its control, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
Military analysts say government support for arms manufacturers is common. Promoting production of modern weapons, the state supports national manufacturers, stimulates creation of new jobs, and provides revenue to the state budget. It also helps develop the scientific and technical potential of the country to attract investment in this sector and associated industries, as well as provide the Armed Forced of Ukraine with modern weapons.
Ministry experts say that the state security is a practical mechanism to support the Ukrainian defense industry.
This kind of State assistance to strategic companies is envisioned in the State Budget Code and the Law of Ukraine "On State Budget of Ukraine 2013." Also, the defense items are not manufactured directly by Ukroboronprom, but participating companies under its control.
It is necessary to amend the Law of Ukraine "On State Budget of Ukraine for 2013" in order to provide state securities precisely to those companies. In this regard, experts say Ukroboronprom controls 134 enterprises, including the State-owned Company Ukrspecexport and its subsidiaries.