POST-RELEASE

First Investment Forum on Defense Industry of has been held in Kyiv

Kyiv February 22, 2016

“Ukrainian Defense & Security Forum ‘16” was held on February 18, 2016 in InterContinantal Kyiv hotel under the patronage of the Ministry of Defense of Ukraine and State Concern “UKROBORONPROM”. Forum is the first and the largest global platform in Ukraine focusing on investment opportunities of local defense and security market bringing together representatives of Ukrainian manufacturers and international investors.

The Forum was attended by , Secretary of National Security and Defense of Ukraine, Vasyl Hrytsak, Head of the Security Service of Ukraine, Stepan Poltorak, Minister of Defense of Ukraine, Roman Romanov, CEO of SC "Ukroboronprom", Ernest Herold, Deputy Assistant Secretary General for Defence investment, NATO, Mark Opgenorth, Deputy Director, NATO Liaison Office in Ukraine, Alan Merbaum, Principal, International Air and Missile Defense, Lockheed Martin Missiles & Fire Control, David Tevzadze, Minister of Defence of Georgia (1998-2004), Archil Tsintsadze, Project Manager, National Security and Defense of Ukraine Reform, National Reforms Council of Ukraine, Oleg Batyuk, Managing Partner, Dentons, Mikhail Gvozdov, President and General Designer, SC "Antonov", Sergiy Popov, Partner of KPMG Ukraine, Igor Krivtsun, Chairman of the Supervisory Board, Paton Corporation, Academician of the NASU of Ukraine, Andriy Kulykov, “Svoboda Slova” Anchor, ICTV, and others.

The Forum was attended by over 500 senior executives from 35 countries, including such companies as Boeing, Airbus, Thales International, DynCorp International, Microsoft Corp., PCO SA, Sagem Défense Sécurité, Elbit Systems, Caterpillar Inc, SigmaBleyzer, Worldwide Aeros Corp., Renault Trucks Defense, Honeywell Defense and Space Int., Orbital ATK, STC Delta and others. 50 representatives of foreign embassies in Ukraine also attended the Forum, including Ambassadors, military and commercial attachés of the US, Canada, UK, Japan, Germany, Australia, Korea, Estonia, Moldova, Belarus, Iraq, Georgia, Kazakhstan, Turkmenistan, Uzbekistan, Bulgaria, Romania, Serbia, Czech Republic and Pakistan.

Oleksandr Turchynov, Secretary of National Security and Defense of Ukraine, speaking at the opening of the Forum, said: "Building and strengthening national security and defense sector is the basis of the keeping Ukraine safe and securing the free democratic development of our country. Modern vector of the Armed Forces, the Security Service and the Interior Ministry reformation is due to, first of all, the absence of alternative to the choice of the European and Euro-Atlantic integration by the Ukrainian people. There are objectives that we are trying to implement, despite the fact that the enormous resources of the country were diverted to confront the aggressor. Namely these tasks are the transition to NATO standards and building security and defense sector according to the best examples of leading European countries and the Allies."

Geoffrey R. Pyatt, Extraordinary and Plenipotentiary Ambassador of the USA to Ukraine, in his speech said: "Today Ukraine has stronger and more powerful armed forces. Now Ukraine is trying to build a combat-ready armed forces to comply with NATO standards, and the US and Ukraine will remain partners. We made a multi- million dollar contribution to help. I expect this year to provide more than $ 300 million for education and training of the Armed Forces of Ukraine, which continues in Yavoriv and other places, as well as the equipment necessary for increasing Ukraine’s defense capacity. American business can invest and share technology with the Ukrainian defense industry only after the implementation of reforms and eradication of corruption in the country."

Stepan Poltorak, Minister of Defence of Ukraine, General of the Army, in his speech said: "We plan to complete the reform of the Armed Forces of Ukraine in five years. We value the cooperation with our partners, both internal and external. During the year we acquired over 4,700 units of new and modernized

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military vehicles and repaired 34 thousand vehicles. Ahead of serious work, we need to focus on new developments. Together we must build Armed Forces of Ukraine capable of guaranteeing our independence!”

Roman Romanov, CEO of SC "Ukroboronprom" during his speech at the forum said: "Ukroboronprom integrates into the world market and invites all international partners to mutually beneficial cooperation. Ukrainian defense complex now has capacities that far exceed the needs of both the domestic market and the export. In 2015, "Ukroboronprom" produced for the Armed Forces of Ukraine and other law enforcement agencies more than 2,000 vehicles, and total 2015 exports were worth of more than $ 1.3 billion. Revenues amounted to about 20 billion USD, 7 billion of which were MOD contracts. The expected net profit of State Concern enterprises in 2015 will be around 1.5 billion versus 350 million loss in 2014 ".

During the Forum, Deputy Director of the NATO Liaison Office in Ukraine Mark Opgenorth said: "We support Ukraine in developing its defense capabilities. And our support is focused mainly on long-term reform. Additional value that NATO brings to Ukraine is transparency and control in the defense system. We spent almost a year on making the analysis of Ukrainian logistics system and developing a "road map" with the new standards. We help Ukraine to develop a common framework for reform: strategy, military doctrine and others. Now Ukraine finalizes Concept of reforming the security and defense sector. A specific document on which we are working is called Strategic Defense Bulletin. This is the "White Paper" in the security sector with incremental reform action plan for the next 5 years. In order for Ukraine to succeed in systemic reforms and ensure continued coordination among stakeholders in the field of security, planning process will have to be more comprehensive and robust."

Ambassador of Canada to Ukraine Roman Waschuk said: "In addition to direct technical assistance to Ukraine Canada provides non-lethal equipment and training. An example is the Operation Unifier conducted at Yavoriv and Kamenetz-Podilsk training grounds, where about 200 troops from Canada provide military combat training for Ukrainians and teach how to use robotics for explosive ordinance disposal."

The feature of the Forum was "one-on-one" meetings between investors and representatives of Ukrainian companies on the second day of the Forum.

Forum organizer - A7 CONFERENCES. The Exclusive Legal Partner - Dentons. Innovation Partner - Microsoft Ukraine. Exhibition Partners - ICIPS and Housing Estate “Orange Park”. General Media Partner - Economic Pravda, General TV-partner - 5 Channel, General News Partner - Interfax-Ukraine. General Specialized Media- Partner - Defense Express, the Exclusive Media Partner - Liga Business Inform, Exclusive Business Media Partner - "Business" newspaper, Business TV-partner - First Business Channel, also among the media partners are Persha Shpalta, Ukrainian Week, Companion, DELO.ua, KyivPost, Apostrophe, Milnavigator, Industry in Focus, Defense Update, Military Informant, Defence Blog, Business Views. Forum was supported by the MBA International, ACC, KMBS. Avia Partner - AirLife. The next forum is scheduled for February 16, 2017.

Full record of online broadcast of the Forum is at our website: www.a7conf.com/defense

For more information please contact Oksana Kadochnikova, Public Relations Manager of A7 CONFERENCES, tel.: +38 044 227 27 77, +38 068 120 53 35, [email protected]

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