Ukraine is updating its defense management: Defense Ministry prepares new supervisory boards and large-scale corporatization of state-owned enterprises
3 December 22:19
The Ministry of Defense has announced the next stage of defense sector reform – renewal of supervisory boards and further corporatization of state-owned enterprises. This was stated by Defense Minister Denys Shmyhal, reports "Komersant Ukrainian".
He outlined plans that will affect the management structure of some of Ukraine’s largest defense companies.
What will change in the near future
According to Shmyhal, it is planned to fill the vacant seats on the supervisory board of Ukroboronprom and a number of other defense companies in the coming weeks. In addition, after the merger of the State Logistics Operator and the Defense Procurement Agency, a new enterprise will appear on January 1 with a newly created supervisory board.
This merger is to be part of the defense procurement reform, which the government positions as a way to make the system more transparent and manageable.
Corporatization and transfer of state assets
The government is committed to strengthening corporate governance. The Minister reported that 14 out of 90 state-owned enterprises that were under the control of the Ministry of Defense have already been transferred to the State Property Fund, and another 11 are in the process of being transferred. Four enterprises are being transferred to Ukroboronprom.
This means a significant reformatting of the MoD’s role as an owner, with an emphasis on separating political and managerial influence.
A wave of renewal of supervisory boards in state-owned companies
The reform comes amid broader changes in the public sector. President Volodymyr Zelenskyy previously announced that a large part of the supervisory boards of large energy companies, including Centrenergo, the GTS Operator, and others, would be terminated in December.
In November, the government approved a plan to renew the governing bodies of fuel and energy companies, with clear deadlines for each institution. This was a continuation of the policy of reassembling key state-owned assets.
Reshuffle at Ukroboronprom
Among the latest personnel decisions is the resignation of Tymofiy Mylovanov, a former member of the supervisory board of Energoatom and former advisor to the head of the Defense Ministry Andriy Yermak, from the supervisory board of Ukroboronprom.
What it means for the defense sector
Ukraine is accelerating defense governance reforms amid growing army needs and changes in wartime logistics approaches.
Key challenges remain efficiency, transparency of procurement, and the ability of state-owned companies to compete for investment and international support.
