Economy Ministry proposes law on public procurement not apply to 16 defense companies

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Aug. 23, 2012, 4:06 p.m. | Business — by Interfax-Ukraine

Minister of Economic Development and Trade of Ukraine Petro Poroshenko

The Ukrainian Economic Development and Trade Ministry has formed a list of 16 major defense companies, which it proposes withdrawing from the effect of the law on public procurement in line with the amendments adopted in June 2012 that envisage the cancellation of the procurement of goods, work and services by defense companies without tenders.

According to a draft resolution of the Cabinet of Ministers posted on the ministry's Web site on Wednesday, the list includes Antonov State Enterprise, Malyshev Plant, Zaporizhia-based Ivchenko-Progress Machine-Building Design Bureau, Kharkiv-based FED Machine-Building Plant, Kherson-based Pallada State Plant, Feodosia-based Morye Shipbuilding Company, Pivdenne Design Bureau and Pivdenmash.

The list prepared by the Economic Development and Trade Ministry also includes Sevastopol Aircraft Plant, Lviv Armored Tank Repair Plant, Zaporizhia Automobile Repair Plant, Lutsk Motor Repair Plant, Feodosia Ship and Mechanical Plant, Kommunar Association, Kyiv Petrovsky Automatics Plant and Pavlohrad Chemical Plant.

As reported, the application of the law on public procurement to defense companies has been criticized in the defense sector since it came into force in 2010. The execution of the law was accompanied by numerous collective and personal appeals from the directorate of the defense industry to legislative and executive government agencies with requests and demands on the introduction of amendments to the law.

The Ukrainian Defense Ministry said at the beginning of this year that Ukraine's state defense order in 2012 would amount to Hr 1.47 billion, which is four times more than in 2011.

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