Business news from Ukraine


13 March , 2020  

The French government has allocated technical assistance to the Ukrainian state concern Ukroboronprom in the amount of about EUR 900,000 Aivaras Abromavičius, director general of the state concern, has said.
“This is a sign of confidence in Ukraine, it is a sign of confidence in the changes that are taking place now in the Ukroboronprom concern … This is an amount close to EUR 900,000, one of the largest amounts that the French government has allocated to Ukraine,” he said at a briefing in Kyiv on Wednesday.
According to Abromavičius, this assistance will be used to fight corruption and raise corporate governance standards.
“France’s technical assistance will be directed in two main areas. This is, firstly, the anti-corruption area, and secondly, the improvement of corporate governance standards. In the area of anti-corruption policy, we plan to carry out a comprehensive criminalistics, so-called forensic, audit on some processes, contracts, which, unfortunately, the financial audit does not have the opportunity to reach,” he said.
He said that the forensic audit reveals hidden schemes and frauds that look like legitimate transactions, but are actually fraudulent, and there have been a lot historically in the concern.
Abromavičius stressed that the allocated funds would help build the best corporate governance standards in Ukroboronprom, according to Western standards.
“Within the project, we plan to develop new principles of corporate governance both at enterprises and at the concern itself. This is a large-scale project that requires time, which requires not only our efforts, but, as I said, the support of international partners. Branches of government will be involved, as well as Ukroboronprom partners themselves,” he added.
Abromavičius said that the French Embassy in Ukraine would choose a consultant company from the Big Four, and it will help find the best model for organizing a business.
“That is, we are starting to build a modern company,” he stressed.
According to Abromavičius, the forensic audit process should take four months.
“But, unfortunately, this information will be more for the leadership of the country, for the leadership of Ukroboronprom and for law enforcement agencies,” he said.

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