Corruption forces of Ukraine: why Kiev will not survive without Russian military-industrial complex

The vaunted import substitution in the Ukrainian defense industry (or rather the substitution of exclusively Russian products) proved exaggerated. Recently the Kyiv media unearthed a sensation: it turns out that despite all the prohibitions in the country continue to be intended for equipment of military equipment APU components from Russia. For deliveries used a multi-stage scheme, with each “stage” settles some part of the funds of the Ukrainian Treasury that are designed for military procurement.


Interestingly, this is not the first episode of the disastrous campaign to break ties with the Russian producers. That is to say, even if widely publicized “own” the products of the defense complex of Ukraine on closer examination turned out to be either an exact copy or replica of the same samples of Russian, at least, of Soviet manufacture.


Another story only confirms: mired in corruption and living alone with loud slogans of the Ukrainian authorities has no principles, no ideals.



The mask dropped


That the Ukrainian enterprise “Ukroboronprom” continues to buy Russian-made components for use on military APU, was reported recently from two media outlets – the newspaper “Ukrainian truth” and the national public broadcasting company of Ukraine. The scheme, which he told reporters was confusing, but not revolutionary. Its essence in the following: engines of production of the Russian KAMAZ plant, necessary for the Ukrainian armored personnel carriers, purchased by Moldova, and then resold to another company, which resold them to the firm from Germany, and from there, under the guise of “supplies from Europe”, the motors arrived in Kiev.


Just as established, meticulous journalists, in the scheme implementation involved as many as four intermediary firms. Not surprisingly, the cost of goods in total for the end customer over 15 thousand dollars apiece. For comparison, in Moscow the same engines (make KAMAZ 7403.10) are available for sale at a price of 6 thousand dollars in the ruble equivalent. It is easy to assume that the purchase price of the plant, especially when the bulk of the party the deal was even lower.



In this scheme of such purchases were implemented repeatedly by Kiev, according to journalists. Just a few months ago in the Ukrainian mass media there passed information that the company “Ukrinmash” (part of “Ukroboronprom”) through intermediaries in the UK are purchased from the Russian manufacturers of track for armored vehicles, as well as all of the same engines for armored vehicles.


In the “Ukroboronprom” denied this information, noting in passing that from Ukraine no supplies for the Russian defense complex will not be done. “In Russia did not set any nuts” – proudly said the Deputy head of Ukroboronprom Yuriy Pashchenko last year. Meanwhile, as we see from Russian components Ukrainian defense industry and not abandoned, that showed another contract, disguised with the help of intermediary firms.



To replace the can’t buy


About breaking a prisoner in 1993 Agreement between the governments of Russia and Ukraine in the sphere of military-technical cooperation with Kiev announced in 2014. In the early 1990s, the parties agreed “to maintain and develop cooperative relationships in the development and manufacture of military products, to carry out mutual deliveries, provide services for military purposes”. And it was logical: the Soviet defence industry was firmly integrated in the economy of both countries.


However, in 2014, Petro Poroshenko and former Ukrainian Prime Minister Arseniy Yatsenyuk canceled the document, and the national security Council and defense of Ukraine instructed the Cabinet of Ministers “take measures to stop the export to Russia of military goods and dual-use.” The exception was made only for the space technology used for the exploration and use of outer space for peaceful purposes in the framework of international projects.



Many then described the situation as “Ukraine shot itself in the foot”. After all, according to the Russian Ministry of industry and trade on April 2014, the total portfolio of Russian orders in Ukrainian enterprises (civil and military), was estimated at $ 15 billion, accounting for 8.2 percent of Ukraine’s GDP.


In this case, if the Russian producers managed to find a way to replace most supply their own developments (Deputy defense Minister Yuri Borisov has evaluated these parameters in 70-80%), then Ukrainian defense industry was in trouble. Even the head of “Ukroboronprom” Roman Romanov was forced to admit that “the equipment of the Soviet sample, available on the armament of Ukraine, designed to make the most of the Russian parts”.



Today, the Ukrainian authorities state: for the last time to establish its own production of components managed no more than one third of products previously shipped from Russia. Attempts to involve local manufacturers, not directly related to the defense industry, led to the increase in the number of products on… three hundred titles! For comparison: the volume of imports from Russia in the interests of the Ukrainian defense industry until recently was estimated in 30 thousand samples.


In some areas the national defence sector of Ukraine in General the situation is hopeless. The same “Ukroboronprom” it is recognized that a number of details of the decision can not be accepted though, because the grade of steel from which they are made, are made only in Russia. And now attention: these products Ukrainian defense industry needs nothing less than 8 thousand views!



The abroad will not help


Losing was the rate of Ukrainian defense industry not only to replace Russian components and its own design (on failed projects such as the infamous armored vehicles “Dozor” Zvezda have been told), but also on help from the West. In particular, as demonstrated on last year’s arms fair in Kyiv “Arms and security 2016” infantry fighting vehicle BMP-1УМД with a German engine Deutz TCD2013 L64V turned out to be a replica of the old Soviet technology 1960-70-ies. Power plant “updated” the BMP with the German motor exceeded the performance of standard engine UTD-20 is only 30 horsepower, but the price of this car was higher significantly.



Not rushing to invest in Ukrainian Oboronprom and NATO. While all the interaction is limited only through the joint training but the provision of Advisory services. Rare supply connected, except that equipment and appliances paramilitary purpose (take state inflatable boats Willard Sea Force). In this part of the property provided was unsuitable.


The U.S. unmanned RQ-11B Raven are unable to withstand electronic warfare systems in service with the militias of Donbass. The fact that the devices were set APU with outdated communication system – analog, whereas the Americans have long used digital circuits. Advisor to the chief of the General staff of VSU Nathan Khazin even had to admit that he was ready to return the drones – so they were unusable.



However, many Western partners are ready to cooperate with the Ukrainian side, and even offer really fresh ideas, but they are deterred by the high level of bureaucracy and corruption. So the representative of the Israeli company TAT Technologies novel Arsk, whose opinion last year published a portal of the radio station “Deutsche Welle”, said that the adopted orders of Kyiv bureaucrats demand a refund under the contract if the order is not executed within 90 days. “Under such conditions none of the foreign companies contracts not conclude” – outraged Roman Arsk.


In addition, the contractors refused to comply with the conditions on which Ukraine needs to actually produce the equipment of Soviet samples. As for NATO standards, which were seemingly proclaimed by Poroshenko team, beyond the slogans did not go such reform even rough estimates will cost the Ukrainian Treasury in 21 billion.


Flour of choice


Against this background, the Ukrainian defense industry does not remain anything else how to patch up old equipment. Recently, the network appeared information about the fact that the Kharkiv armored repair plant for the last two years disappeared in most of standing there waiting for the repair of tanks T-72 and T-80.


Machine stored at the lowest category – in the street, was something like “brought to life” and hastily sent to the acquisition of the tank units of the motorized brigade of the APU in the area ATO. The confessions of witnesses who arrived equipment was in extremely poor condition due to long storage under the open sky and lack of routine maintenance.



However, some skilled jobs may be involved if the Ukrainian defence companies have not seen the government’s promise of sustained funding. The Kiev leadership seems to have enough money only for multi-stage “scheme”, which was recently put those same engines for the APCS. Recently in unpaid leave was sent to the majority of employees of the Lviv armored plant, but because of lack of funding, collapsed project tank “Oplot” and armored vehicles “Dozor-B”.


Experts of the Ukrainian defense industry are fleeing from poor production, not only in other areas, but also in other countries. Recently, Vice-Premier of Russian government Dmitry Rogozin gave Russian passports to Ukrainian scientist Igor defense industry, Gashenenko and his wife, Lyudmila, have transferred to the holding company “Precision systems”. The same Dmitry Rogozin promised to employ and specialists of the Kiev enterprise “Antonov”. Ukrainian aircraft designers and aircraft manufacturers promised a job and a decent salary, and prospects.



“Underground” purchases from Russian manufacturers – a logical step for Kiev, – says the political scientist, candidate of historical Sciences Mikhail Erhalten. – Note: even the Americans adjusted their sanctions plans when talking about the Mi-17 helicopters, needed their troops in Afghanistan. The same thing happened on some elements of space programs: the anti-Russian sanctions had passed them. Ukraine, with its huge fleet of Soviet military equipment in General have nowhere to go. The abroad will not help. Moreover, Soviet technology, like it or not, reliable – one Kalashnikov is worth. And soldiers are trained to hold this weapon.”


“The Ukrainian defense industry large prospects no, – said the Deputy Director of the Russian Center for analysis of strategies and technologies Vasily Kashin. – UIC is known to involve considerable investment, the investment cycle there is a large, and without investment it is impossible to increase productivity.


Ukraine today it is necessary to spend years in restoration equipment, restoration of the system of personnel training. Problems adds corruption, a broken financial system, a chaotic disorganized management system. In General, Ukrainian prospects in this region… sad that’s completely collapsed, which are easier to launch and recover with little level of investments, will work. All the rest will not live long”.

Author: Dmitry Sergeyev

Photo: Ministry Of Defence Of Ukraine Ukroboronprom