100 days: from crisis management to systemic development
One hundred days is the time traditionally given to a new team to consolidate its work course, plan details and to demonstrate the first results.
To objectively assess all the work done in the Ministry of Defence, I suggest all those interested in to address to my speeches in the Verkhovna Rada of Ukraine during the assignment (November 4, 2021) and during the “question hour to the Government” on December 3, 2021. They can be used as a base for comparison.
So, without further ado, let me move on to what we have done in these 100 days:
• Effectively fulfilled a budget plan of 2021.
— Budget utilization rate — 99.7%. Although, you remember what the prognosis in November was.
• Provided funds for the State Defence Order.
— Rate of implementation — 99.75%. As of December 1, the rate was 85%. We have fill up current needs and invested in several perspective national developments that will provide advantages for our army in two or three years.
• Additional 2.5 billion hryvnas were added to the MoD budget for 2022.
— Today we have the largest budget of more than 133 billion hryvnas over the whole period of Independence.
— Including 29 billion hryvnas on weapons and military equipment.
— By implementing these 2.5 billion hryvnas we started programmes of gradual salary rise in the Armed Forces.
— Medics and pilots have already received the rise, the rise for snipers and SOF will come shortly, etc.
— And these are only the first steps. The proposals of the MoD for additional 11.8 billion hryvnas in 2022 to allocate for salary rise and priority needs have been sent to the members of parliament and registered as a draft change to the Ukraine’s National Budget for 2022.
• We resumed a rhythmic work with the Verkhovna Rada Committee on National Security, Defence and Intelligence. I want to thank a head of the Special Committee Oleksandr Zavitnevych and the members of the Committee on behalf of all fractions and groups for co-operation and support. There is a wide spectrum of results.
— The open part of an annual and a three-year defence procurement plan of the Ministry has been adopted. The closed part is thoroughly being worked on. The Committee did its part of a work on February 10. Now it is turn for the National Security and Defence Council and the Government.
— In December, an act of the Verkhovna Rada on the President’s decision on providing permission for foreign troops to take part in exercises was operatively conducted.
— In January, the Agreement with the Government of the Great Britain was ratified in the interests of the Ukrainian Navy, etc.
• We provided a full synergy in co-operation with the General Staff. We closely cooperate with the Commander-in-Chief of the Armed Forces of Ukraine, Lieutenant General Valerii Zaluzhnyi, Deputy Commander-in-Chief, Lieutenant General Yevhen Moisiuk, Chief of the General Staff, Lieutenant General Serhii Shaptala and their colleagues.
— We have repeatedly visited our soldiers in the JFO area, observed exercises, etc.
— If need arises, I am in direct contact with the commanders of units of the Armed Forces of Ukraine.
— The Ministry and the Army are beginning to act as a whole, understanding the common aims.
• We are developing synergy with the Ministry of Strategic Industries. More time is needed for the visible results because of the plans, production cycles, etc. More to be seen at the end of the year.
• Our military diplomacy has been notably reinvigorated. We make our propositions as reasonable and transparent as possible for our partners. We explain the logic behind our actions and requests. And it works.
— During the foreign visits to Kyiv, I personally met with the United States Secretary of Defence Lloyd Austin III, Minister of Defence of the Great Britain Ben Wallace, Minister of Defence of Israel Benny Gantz, Minister of Defence of Sweden Peter Hultqvist, Minister of Defence of Denmark Trine Bramsen, Minister of Defence of Hungary Tibor Benko, Minister of Defence of Canada Anita Anand, Minister of Defence of Turkey Hulusi Akar.
— I had a phone conversation with a Polish colleague Mariusz Blaszczak. I am in correspondence with Minister of Defence of Germany Christine Lambrecht, and we have agreed a phone conversation and a personal meeting.
— We keep contact with everyone we have spoken to.
— I had several meetings with delegations of the American congressmen and senators, deputies of the European Parliament. There was an unprecedented meeting with the representatives of the more than 30 leading companies of the American defence industry complex.
— As a result, a number of important documents were signed, for example, with Sweden, Turkey; the process on a credit agreement with the Great Britain was worked out, etc.
— Also, everyone can see a regular arrival of military aid. We have received more than 1500 tons of modern weapons and ammunition during the month. And there will be more. President of Ukraine Volodymyr Zelenskyi, Prime Minister Denys Shmygal, our diplomats led by Dmytro Kuleba were working towards this result. In particular, we have received some part of equipment that we were talking about in November during my visit to Washington and during the dialogue with the British colleagues. The equipment that Ukraine has only dreamed of will arrive soon. And we will not lose momentum.
• We started a digital transformation process in several direction.
— In the Armed Forces management sphere, the process of implementing of the automated units control system is gaining momentum, including the one of the strategic level.
— In the service digitalization sphere, the automated working places are being deployed, a testing of the system of remote change of registration place without going to the military commissariat is taking place. Also, we launched a pilot project of replacing the old military commissariats with the modern “MilitaryCDAS” and comfortable recruiting centres.
— In the sphere of the Ministry assets management, the development of the geographic information system has been started. It will show all the assets: land, buildings, rights. Together with the State Service of Ukraine on Geodesic, Cartography and Cadaster we have already joined efforts to organize the defence lands, ensure their protection and transparent use.
• I have given tasks to launch a complex reform of the Ministry of Defence assets management. Among the first steps there is a transformation of the Main Directorate of Property and Resources, which became an obscure monster, into a system of the transparent structures with explicit functions that will deal with policies in the spheres of building, corporate rights, defence land management, etc.
— The Ministry has developed a transparent model of the defence land usage. The draft, existence of which is provided by law, will soon be submitted to the Cabinet of Ministers of Ukraine. There will be no more “shadows”.
• “Legal troop” are gaining momentum.
— During January, they returned 3,117 hectares of the defence land to the Ministry.
• In addition, as I promised, a complex inspection of work of the MoD by the specialists of the State Audit Office has been started.
• The principles of zero tolerance for corruption is being implemented in practice. I appeal to the business representatives and those who can be proposed by some dishonest men to sort something out in the MoD. Please inform the Ministry about these dishonest persons and send relevant application to law enforcement agencies.
• We have already developed algorithms for solving some difficult tasks that are in public focus.
— For example, a process has been launched to rapidly replenish the stock of helmets and body armour en masse. As part of this process, we a striving to move to a higher level of protection, that is 4th by NATO standards. Three types of sources of armour will be combined. First, it is help from partners. And deliveries have already taken place on this track. Secondly, we will purchase certified samples of protection on international sites. Third, the technical task for Ukrainian manufacturers has been improved so that domestic products meet the best standards. Manufacturers will be able to prepare for these requirements and participate in tenders. We are interested in a lively competition, monopoly is excluded.
— We are taking the necessary steps to demonopolize food services. This process is not easy, but predictable. Beneficiaries of existing schemes use well-known tactics of delaying tenders through appeals in court. It will be a difficult path, but we will pass it.
— We have developed a number of legal formulas that will allow us to build arsenals for the army. It is also a very difficult process, because a lot of money is involved, the resistance is terrible, but we are moving. In general, I believe that decisions should be made, no matter of their difficult, and not evade responsibility.
• There are still a number of processes that are running. For example, the demilitarization of offices that do not require military training.
• We are now focused on the implementation of the law “On the Foundations of National Resistance”, particularly, in the deployment of the Territorial Defence Forces of the Armed Forces of Ukraine. The peacetime staff has already been manned by more than 60%, and a systematic work will begin in March on the formation of a special period staff of 130 thousand people. In parallel, the SOF perform their tasks of forming the resistance movement.
At this moment we are gradually moving to the next stage: from the crisis management to the management of strategic development.
I have presented to the President of Ukraine the main positions of our work plan for 2022, which is a part of a set of measures for the next four years.
New threats emerged last year. Russia has annexed Belarus and is gathering a significant number of troops around Ukraine’s border for the second time and openly threatens to escalate the situations.
Since this method of pressure has already been applied, we must assume that its probability will always exist. The Kremlin can withdraw troops, then withdraw them again, or deploy them permanently around our borders.
We must act considering this threat as a constant one. And we must be ready to fight back at any moment.
It is this willingness that can avert negative scenarios.
Today we receive unprecedented help from the partners. But in forming a systematic response to threats, we must rely on two components: the Ukrainian people and the Ukrainian economy. These are the source of our security.
The team
Before saying what we are going to do, a few words about, so to speak, with whom and what we will work.
In 100 days, the backbone of the team has been formed that will create and implement defense policies under my leadership.
It is an honor for me that Ivan Rusnak is the first deputy in the team. This is not just a huge experience, it is a real wisdom and strategic vision, which are very necessary in difficult times for the country. I appreciate the opportunity to work together.
Oleksandr Polishchuk is responsible for the international course. A general, a military diplomat, with whom we are well acquainted since the time we worked together in the TCG.
The information front is held by Hanna Maliar. Now it is perhaps the hottest area of the confrontation.
The very important direction — the provision of weapons and equipment — was headed by General Volodymyr Gavrylov. He has vast and successful experience as a military attaché in strategic partner countries.
Viacheslav Shapovalov is in charge of the army supply, logistics, assets management — the direction where it is necessary to change, complete, find, correct many things.
The “legal troops” led by my adviser Serhii Laputko will help him the most.
Oleg Haiduk is responsible for a set of tasks on digital transformation in the field of defense. He has a great manager experience.
Maxim Litvinov, my advisor, will strengthen the “digital” direction, due to the growing importance of the cybersphere in the context of defence. The Ministry of Defence has professionals for the cyber community.
About structural innovations. The budget of the Ministry of Defence is almost 5 billion dollars. And it will grow. It needs to be managed effectively. This requires appropriate analysis and planning tools that need to be created and configured. I have decided to single out a functional vertical that will deal with the Ministry’s financial management and control. This new vertical is headed by Rostyslav Zamlynskii.
Secretary of State Kostiantyn Vashchenko maintains the organizational coherence of all processes and executive discipline in the Ministry of Defense.
In my work I continue to rely on a group of my reliable advisors and assistants, with whom I have been working for many years.
The formation of a vertical responsible for personnel policy is currently underway. Our team will be even stronger.
We are moving to strengthening the level of heads of units, strengthening project teams, which should provide the Ministry of Defense with a new quality of work.
And to achieve the goal I set — to turn the Defense Ministry into one of the best corporations in Ukraine.
The main plans for 2022
They are based on the five strategic goals for the Defence Force Development as defined in the Strategic Defence Bulletin.
The first goal is to ensure effective defence management
This area will include:
— introduction of a new structure of the Ministry of Defence of Ukraine. In particular, the establishment of the above-mentioned vertical management of resources and human potential in the management of individual deputy ministers, the creation of a separate unit in the vicinity of NATO, the establishment of an internal security system and other;
— formation by with the recommendations of the strategic advisers of the horizontal system of co-operation — committees based on NATO principles;
— committees will include representatives of the Ministry of Defence of Ukraine, the Armed Forces of Ukraine, people’s deputies and other specialists needed to prepare quality decisions;
— synchronization of the MoD and the AFU structures;
— comprehensive auditing of the MoD activities by the State Audit Service of Ukraine and the Accounting Chamber and the Interagency Task Force in accordance with protocol resolution of the National Security and Defence Council of Ukraine;
— inventory procedures, automating the assets of MoD and AFU, and moving assets into a “real-time” mode;
— the concentration of resources on launching sites aimed at improving defence capabilities;
— a shift to planning exclusively in the form of State targeted programmes, while at the same time ensuring budgetary funding for the MoD at a level not less than 3 per cent of GDP;
— establishing and launching a centralized procurement organization such as the NSPA with transparent principles and procedures.
The digital transformation of the defence sector is of special attention, in particular:
— adoption of strategic and tactical automatic control systems;
— developing, implementing and scaling-up resource management systems based on the ERP model.
The second goal is the formation of quality human capital
In particular, ensuring the transition to a professional army and creating the necessary reserve. This block will include:
— gradual rise of the minimum salary to twice the minimum level during 2022;
— creation of an enhanced motivation system for those who will conclude long-term contracts from January 1, 2023;
— development and adoption of a new law on the financial support of servicemen, which will be linked to the system of training and personal development;
— introduction of a transparent system of military career management, in particular, the introduction of a system of rating promotion on a career ladder;
— implementation of the “develop or go” system;
— launch of a fundamentally new accumulative housing system;
— directing all internal resources (investment construction, exchange agreements, etc.) into the provision of the service-provided accommodation with a simultaneous revision of the standards of dormitories and improved dormitories for a soldier under contract;
— introduction of an intensive military training model (3–4 months) to abolish conscription from January 1, 2024.
Third goal. Achieving a high level of capability through the rearmament and development of military equipment will include:
— implementation of a three-year procurement plan system;
— opening a part of defence procurements to create a competitive market and attract international capital;
— clarification of the powers of the MoD and the specialized committee of the Verkhovna Rada in the decision-making process on prices and terminology, and establishment of a procedure for emergency procurement;
— comprehensive testing of all research and development work (R&D), closing all inefficient R&D, ensuring the concentration of resources on certain R&D (primarily EW, automatization and robotics), etc.;
— approval of the State Target Defensive Development Programme of armament and military equipment of the Armed Forces until 2026;
— approval of the State Programme for the Development of the Armed Forces of Ukraine until 2026;
— approval of the State Missile-Development Programs until 2031;
— systematic development of the capabilities of the Navy;
— creation of the effective Anti-aircraft and Missile defence system;
— development of the UAV component by purchasing foreign and investing in the production of domestic systems;
— selection of a unified truck platform and subsequent localization of production in Ukraine;
— selection of a unified platform of an off-road passenger car as the main passenger car;
— intensification of International Military Technical Co-operation.
The 4th strategic goal is to improve military infrastructure, logistics, reserves, and others.
The first stage in this direction is the construction of two military bases in Mariupol and Berehovo in Zakarpattia and two sea bases in Berdyansk and Ochakiv, the development of the infrastructure of healthcare facilities of the Armed Forces, solving the problem of arms depot, and others.
We have received additional impulse, which, on the one hand, relates to the deployment of the Territorial Defence Forces of the Armed Forces of Ukraine. It is 176 military units in 155 locations. This work continues around the clock.
On the other hand, it is a systemic initiative of Ukrainian President Volodymyr Zelenskyy to increase the size of the Armed Forces by 100,000 people over four years. It is to be implemented by adopting the law by the Verkhovna Rada of Ukraine. Therefore, we will be ready to start a practical work after the relevant decisions of the Parliament and the Government.
The 5th strategic goal is to integrate the defence forces` operational (combat and special) capabilities to achieve a de facto level of compliance with the NATO requirements. It will include:
— the ability to act unpredictably, innovatively and asymmetrically to offset the numerical and technological advantage of the enemy;
— increasing the capabilities of the Special Operation Forces and a Resistance Forces, the Territorial Defence Forces of the Armed Forces
— of Ukraine, the State Special Transport Service and code command system (forces);
— improvement of doctrinal documents on the preparation and use of forces and equipment;
— implementation of the specific NATO Standards;
— development of training missions of the NATO member states in the sphere of training of defence forces.
We view this plan as a foundation and a start-up phase of transformation, which in 5–7 years should provide Ukraine with qualitatively higher capabilities in the sphere of defence. So that our nation, with its people and its economy, can confront any aggressor.
I will use the example of the Presidential Decree of February 1, 2022.
The team and I take it as a sign of support for our vision of defence sector reform, with a four-year horizon for addressing the President’s challenges, so it is a result in itself. But we take it as a credit of trust and a chance for the country to do what needs to be done.
This Decree concentrates the efforts of the Parliament, the Government, the Ministry of Defence on the preparation and implementation of decisions that will ensure:
— increase the minimum salary in the Armed Forces by 40 per cent during 2022 (from approximately UAH 10,000 to a minimum of UAH 14,400) with appropriate coefficients in the wage scale;
— minimum salary for the long-term contracts at the level of UAH 21,500 (about USD 750) during 2023;
— increase the budget of the Ministry of Defence from January 1, 2023, to at least 3% of GDP, approximately by 40–43 billion hryvnas. That is one-third of the indicators approved in 2021. The final figure will depend on GDP.
The defence sector will have more opportunities. We must optimize all processes during the year to eliminate of what can slow down this process. Launch personnel reform. Start the process of eliminating the accommodation waiting list. Switch to a comprehensive defence model and give a boost to our defence industry.
To make the Army the driver of the modernization of the whole country.
I am sure that this approach will make it easier for us to attract assistance to priority areas and form alliances.
Ukraine will become a donor to the security of all Europe. Many already understand this.
So, the plan is formed, the tasks are defined. I am not going to make any predictions or promises.
I would better report the results.
