Who could have thought that just another bureaucratic monster coming from the very depths of a corrupt post-Soviet system would inevitably stand against vital reforms in Ukraine?
On Nov. 18, the defense production giant UkrOboronProm finally admitted something known to everyone in the country’s defense community.
The Ministry of Strategic Industries headed by Oleh Urusky is actively sabotaging reforms. In an eyebrow-raising move, this ministry was launched in July to shape policies for key industries, such as arms, aircraft, spacecraft manufacturing.
Creating yet another super ministry possessing highly-centralized control contradicts what defense sector reform is supposed to achieve: a competitive pool of modern arms production companies.
New Ukrainian defense corporations were supposed to be able to act on their own without asking permission from a big guy at the ministry.
UkrOboronProm, the living symbol of apocalyptic corruption and obsolescence, was to be buried and forgotten forever.
This was the plan advocated by the UkrOboronProm management team created by Aivaras Abromavicius and currently led by his former deputy Ihor Fomenko. Unlike previous leadership, this team has managed to stay free of any corruption scandals. They finally launched many severely overdue solutions, such as a complete financial audit.
But then Uruskiy and this new Soviet-style, obscure ministry hit the stage. Soon, progressives such as former Space Agency head Volodymyr Usov, were sacked abruptly behind closed doors with no explanations.
The change puts Urusky’s ministry in control of key enterprises such as the Antonov aircraft manufacture.
UkrOboronProm responded by accusing the new super ministry of sabotage and malign interference with business activities of defense enterprises. According to the outcry, Urusky pressured the team to appoint his people to lead key defense enterprises, notably special export companies enjoying exclusive rights on foreign arms deals.
The next day, the ministry issued a vague response, accusing UkrOboronProm of incompetence and ignorance. Facing specific accusations, it fought back feebly because it has nothing to say credibly.
As Hlib Kanievskiy, the head of anti-graft watchdog State Watch said, the super ministry is moving in the wrong direction on many fronts.
It changed regulations to favor steel factories owned by Rinat Akhmetov, the richest billionaire oligarch. It lobbied amendments to the Prozorro e-procurement system, none of which are likely to increase transparency and competitiveness of state purchases. As one of its first public procurement tenders, it tried to purchase three luxury cars for Urusky and his deputies.
Bottom line: We don’t need this shadowy Soviet-style albatross claiming concentrated power. We don’t want officials making shadowy deals behind closed doors and appointing their yes-men to the most lucrative businesses.
We don’t need more entangled bureaucracy, more control, more KGB-style secrecy behind which our defense enterprises denigrated into rusty ruins as former directors bought mansions and elite cars.
Ukraine’s defense industry has been brought to the brink of collapse before.
Urusky must be sacked immediately, and his ministry annihilated.
President Volodymyr Zelensky, who seems clearly outmatched by the Kremlin, oligarchs and corruptionists, scored a lot of political points with voters because of the perception that he wants to do the right thing.
But so many events are tarnishing this reputation.
If Urusky isn’t gone soon, it means Ukraine does not have a wartime president willing or capable of building the nation’s defenses.
