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Ukraine's Cabinet has approved the Concept of State Target Program for Reform and Development of Military-Industrial Complex of Ukraine till 2017, the Information-Analytical Bulletin of the Cabinet of Ministers of Ukraine informs.
One of the most important government functions is ensuring national security, sovereignty, and territorial integrity. Provision of Armed Forces, other military formations, and law enforcement agencies with new armaments, military and special equipment is an important task that helps the government perform this function.
According to military experts, these tasks will be solved by the country's Military-Industrial Complex (MIC).
MIC includes state-owned enterprises, organizations, and institutions – parties to State Concern "Ukroboronprom" – and other economic entities (all forms of ownership) involved in development, production, sale, repair, upgrade, and disposal of military equipment and other items of military and dual use. Also, MIC sector includes central executive bodies managing the above business entities and ensuring formation and implementation of state military-industrial and military-technical policy.
In recent years, capabilities of local MIC enterprises to supply the Armed Forces, other military formations, and law enforcement agencies with modern armaments are reduced, thus jeopardizing the national defense and security.
Experts say this situation is caused by imbalance of MIC structure and incomplete use of equipment by appropriate enterprises. In fact, the major part of MIC fixed assets is morally and technically outdated. The number of state defense orders remains extremely low. This, in turn, leads to critical financial-economic status of MIC enterprises and massive outflow of qualified personnel.