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Opponents of defense spending may cite the economic consequences of COVID-19 — huge deficits and ballooning national debt— in an effort to slash the Department of Defense's budget. If they succeed, American military supremacy will erode further, inviting aggression from adversaries and decisively undermining American security. By BRADLEY BOWMANon May 20, 2020 at 4:01 AM Even as many Americans huddle in their homes to avoid the coronavirus, our adversaries have continued to use military power to test and undermine the United States. Since the crisis began, Moscow has sent bombers to probe American air defenses near Alaska. China escalated its belligerent activity in the South China Sea. Iran has harassed U.S. naval vessels in international waters. North Korea launched a barrage of missiles. Hackers have pummeled defense networks and suppliers with cyberattacks. All the while, terrorists have continued attacking U.S. and partner forces in Iraq and Afghanistan. Authoritarians and terrorists apparently did not get the memo that they were supposed to play nice during the pandemic. They clearly still believe they can advance their interests and undermine ours with the employment of cyber and kinetic military power. Despite this, opponents of defense spending may cite the economic consequences of COVID-19 — huge deficits and ballooning national debt— in an effort to slash the Department of Defense's budget. If they succeed, American military supremacy will erode further, inviting aggression from adversaries and decisively undermining American security. To be clear, the United States did not find itself in this tenuous position overnight. America's military edge has been eroding for years. For many years after 9/11, Washington repeatedly failed to provide the Pentagon with the timely, predictable and sufficient funding necessary to maintain current readiness and modernize its forces. When confronted with this difficult choice, defense leaders were often forced to postpone vital weapon modernization research and development programs to resource and support the next units to deploy. Meanwhile, Beijing and Moscow studied how the United States fights wars and undertook comprehensive efforts to modernize their weapons and revamp their operational concepts. So, by 2018, the military balance of power had shifted so significantly that the National Defense Strategy (NDS) Commission — a group of bipartisan national security experts not prone to hyperbole — sounded the alarm. “The security and wellbeing of the United States are at greater risk than at any time in decades,” they warned. “America's military superiority—the hard-power backbone of its global influence and national security—has eroded to a dangerous degree.” Thankfully, the U.S. has now emerged from what the 2018 National Defense Strategy called a “period of strategic atrophy” and taken concerted action. With increased defense funding in the last few years and a focus on great power competition, the Department of Defense is undertaking the most significant U.S. military modernization effort in decades. In order to win the intense military technology competition with Beijing and others, the Pentagon is focusing its research and development on artificial intelligence, biotechnology, autonomy, cyber, directed energy, hypersonics, space and 5G. Simultaneously, the Pentagon and combatant commands are working to develop a new joint concept to employ these new weapons. Despite these positive efforts, U.S. military supremacy has continued to erode. Consider Indo-Pacific Command's report submitted in March warning that the military balance of power with China continues to become “more unfavorable.” The United States, it said, is accumulating “additional risk that may embolden our adversaries to attempt to unilaterally change the status quo before the U.S. could muster an effective response.” This is because America has not yet deployed most of the weapons and capabilities it has been developing and is still crafting its new joint warfighting concept. To be sure, each of the U.S. military services are sprinting to field key systems, weapons, and capabilities in the next few years. But the Chinese Communist Party and its People's Liberation Army are sprinting too, and there is no time to waste. The bipartisan experts on the NDS Commission recommended that “Congress increase the base defense budget at an average rate of three to five percent above inflation” in the coming years. If Congress ignores its own commission and slashes defense spending, U.S. military supremacy will continue to erode and could eventually disappear. The far left and libertarians often respond to such arguments by emphasizing the size of the U.S. defense budget. What they fail to mention is that U.S. defense spending, measured either as a percentage of gross domestic product or a percentage of federal outlays, is near post-World War II lows. That doesn't mean assertive congressional oversight is not needed; there is certainly room for improvement at the Pentagon. Indeed, defense leaders must continue to ruthlessly establish priorities, eliminate waste, and implement efficiencies—while credibly demonstrating tangible stewardship to Congress and taxpayers. One should not dismiss the severe economic impacts of the coronavirus. The Congressional Budget Office has highlighted the potentially dire consequences for the federal deficit and debt. But Medicare, Medicaid, and Social Security's mandatory spending — not discretionary defense spending — is the primary driver, by far, of fiscal unsustainability. If the American people and their representatives in Congress provide the Department of Defense sufficient resources over the next few years, the U.S. military will be able to complete and field vital modernization programs. This will ensure U.S. troops have what they need and will enable the United States to re-assert the military superiority that has been so beneficial to peace, prosperity, and security. The coronavirus has certainly demonstrated the need for better domestic health security programs and has delivered a body blow to the U.S. economy. But if political leaders respond by slashing the Department of Defense's budget, Washington risks making American military superiority yet another casualty of the coronavirus. Bradley Bowman, former advisor to Sens. Todd Young and Kelly Ayotte, is senior director of the Center on Military and Political Power at the Foundation for Defense of Democracies. https://breakingdefense.com/2020/05/dont-let-the-covid-deficit-hurt-defense-spending

DoD has "so many hundreds of programs that we really couldn't do a fair evaluation of each individual activity," Mark Lewis, director of modernization in the Research and Engineering office, said today. By THERESA HITCHENSon May 19, 2020 at 5:05 PM WASHINGTON: DoD's Research and Engineering (R&E) office has launched a new initiative to develop best practices for the many programs to design and build artificial intelligence (AI) applications, says Mark Lewis, director of modernization. AI is one of DoD's top research and development priorities, charged to the Director of R&E Mike Griffin. The standards initiative is the brain child of newly appointed AI technical director Jill Chrisman, Lewis told the virtual “Critical Issues in C4I Conference 2020,” sponsored by AFCEA and George Mason University. “When Jill first joined us just a couple of weeks ago, I asked her to give me a site view of all the efforts underway in AI across the department, and kind of give me an evaluation of where we stood,” Lewis explained today. However, he said, because DoD has “so many hundreds of programs that we really couldn't do a fair evaluation of each individual activity.” So, instead R&E has decided “to establish a series of standards, if you will, principles and practices that we consider to be good practices for artificial intelligence engineering,” he said. “I liken it to systems engineering.” A key goal of the new effort is to break down stovepipes in order to allow the various DoD AI efforts to share databases and applications. In addition, Lewis said, R&E is aiming to “figure out what are the artificial intelligence applications that will have the biggest impact on the warfighter.” This could involve moving out prototypes rapidly so that warfighters have an opportunity to “play with them, experiment with them, and figure out what makes their job more effective,” he added. At the same time, it would enable warfighters to quickly reject things that are not useful or overly complicated. Lewis said that developing autonomous systems is another top priority. That portfolio of effort is handled by assistant director Wayne Nickols, and is focused on development autonomous systems that can team seamlessly with humans. “We want autonomy systems that will operate in ways that put human life at lower risk,” he explained. “If we can if we can have a robotic system as a target, instead of a human being as a target, that's that's our preferred approach.” In his wide-ranging discussion, Lewis also expounded on DoD's research goals for quantum science — a focus area that he said is somewhat less well developed than others on DoD's high priority list. “There is a lot of hype associated with quantum science,” he said bluntly. “People are talking about quantum computers that will, in a few years, replace our fastest supercomputers, quantum communication technology, quantum key encryption techniques. And frankly, a lot of it is promising — but it's also very very far term.” That said, Lewis noted that there are two near-term opportunities for DoD in the field: enabling back-up positioning, navigation and timing capability in case GPS satellites are degraded in anyway; and future “exquisite sensors for a variety of applications.” https://breakingdefense.com/2020/05/dod-creating-standards-for-service-ai-programs/

May 19, 2020 - Falls Church, Va. – PAE (NASDAQ: PAE, PAEWW), a global leader in delivering smart solutions to the U.S. government and its allies, was awarded the National Aviation Maintenance and Logistics Services contract by U.S. Customs and Border Protection, an agency of the U.S. Department of Homeland Security. The contract has a one-year base period of performance with nine one-year options, a potential three-month extension and an estimated total value of more than $1.26 billion. PAE President and CEO John Heller said the award recognizes PAE's dependability and specialized expertise for aircraft maintenance. “With our long track record serving CBP's aircraft maintenance needs, PAE has proven to be a trusted partner in supporting U.S. national security,” Heller said. “We look forward to continuing our support to this critical national security customer as we apply our innovative solutions supporting the CBP mission and fleet of over 200 aircraft.” “This is truly a team win and a tribute to the more than 650 dedicated men and women on this program,” said PAE Vice President of CBP Program Management Rob Ulses. “These hard-working individuals have established a real partnership with CBP that allows us not only to support day-to-day operations, but to adapt and react to special missions.” PAE will continue to provide safe and ready aircraft to ensure the U.S. government meets operational commitments to safeguard America's borders. PAE will provide this essential support from aviation operational sites at military bases, civilian airfields and alternate locations across the United States. The broad scope of work extends from scheduled and unscheduled aircraft maintenance and repair to managing fueling, logistics and supplies. About PAE For 65 years, PAE has tackled the world's toughest challenges to deliver agile and steadfast solutions to the U.S. government and its allies. With a global workforce of about 20,000 on all seven continents and in approximately 60 countries, PAE delivers a broad range of operational support services to meet the critical needs of our clients. Our headquarters is in Falls Church, Virginia. Find us online at pae.com, on Facebook, Twitter and LinkedIn. Forward-Looking Statements This press release may contain a number of “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, but are not limited to, statements about PAE's possible or assumed future results of operations, financial results, backlog, estimation of resources for contracts, strategy for and management of growth, needs for additional capital, risks related to U.S. government contracting generally, including congressional approval of appropriations, and contract delays or cancellations caused by competitors' bid protests of contract awards received by us. These forward-looking statements are based on PAE's management's current expectations, estimates, projections and beliefs, as well as a number of assumptions concerning future events. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of known and unknown risks, uncertainties, assumptions and other important factors, many of which are outside PAE's management's control, that could cause actual results to differ materially from the results discussed in the forward-looking statements. Forward-looking statements included in this release speak only as of the date of this release. PAE does not undertake any obligation to update its forward-looking statements to reflect events or circumstances after the date of this release except as may be required by the federal securities laws. For media inquiries regarding PAE, contact: Terrence Nowlin Senior Communications Manager PAE 703-656-7423 terrence.nowlin@pae.com For investor inquiries regarding PAE, contact: Mark Zindler Vice President, Investor Relations PAE 703-717-6017 mark.zindler@pae.com View source version on PAE: https://www.pae.com/news/pae-awarded-ten-year-contract-provide-aircraft-maintenance-us-customs-and-border-protection

May 18, 2020 - Saab has signed a contract and received an order for the Airborne Early Warning and Control solution Saab 2000 Erieye AEW&C. The order value is 1.553 billion SEK. Deliveries will be made between 2020 and 2023. The industry's nature is such that due to circumstances concerning the product and customer, further information about the customer will not be announced. Saab 2000 Erieye AEW&C is a complete AEW&C system with multi-role and multi-mission capabilities for both military and civil needs. It is based on the Saab 2000 aircraft equipped with Saab's airborne radar Erieye and a range of other sensors. The solution gives the user detailed situational awareness and can be used for tasks including border surveillance and search-and-rescue operations. Saab will carry out the work in Gothenburg, Järfälla, Linköping, Luleå and Arboga, Sweden. For further information, please contact: Saab Press Centre, Ann Wolgers, Press Officer +46 (0)734 180 018, presscentre@saabgroup.com www.saabgroup.com www.saabgroup.com/YouTube Follow us on twitter: @saab Saab serves the global market with world-leading products, services and solutions within military defence and civil security. Saab has operations and employees on all continents around the world. Through innovative, collaborative and pragmatic thinking, Saab develops, adopts and improves new technology to meet customers' changing needs. The information is such that Saab AB is obliged to make public pursuant to the EU Market Abuse Regulation and the Securities Markets Act. The information was submitted for publication, through the agency of the contact person set out above, on 18 May 2020 at 11.00 (CET). View source version on Saab: https://saabgroup.com/media/news-press/news/2020-05/saab-receives-airborne-surveillance-order/

May 18, 2020 - The U.S. Navy's Naval Air Warfare Center Aircraft Division's (NAWCAD) Aircraft Prototyping Systems Division has awarded BAE Systems a prime position on a $26.7 million task order to install, integrate, and test the Department of the Navy (DoN) Large Aircraft Infrared Countermeasures (LAIRCM) system on KC-130J aerial transport and refueling aircraft. The DoN LAIRCM advanced missile warning system improves aircraft capability and survivability by countering advanced infrared missile system threats. This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20200518005382/en/ “We understand how vital the KC-130J is to the U.S. Navy and U.S. Marine Corps and the enhanced capability the DoN LAIRCM system brings to the fight,” said Pete Trainer, vice president and general manager of BAE Systems' Air Force Solutions. “With more than 40 years of experience managing complex aircraft modernization and sustainment programs, we're excited that NAWCAD has entrusted us to integrate this system onto their aircraft to ensure the safety of the aircrews and protect this vital capability.” The BAE Systems turnkey solution provides program management, inventory control, engineering support, installation, and system testing of the DoN LAIRCM upgrade. Aircraft maintenance and support activities will also be provided as required. This is the second task order awarded to BAE Systems under the Prototyping and Limited Production indefinite delivery indefinite quantity contract. The DoN LAIRCM installation will be performed on up to 19 KC-130J aircraft over the next five years; the work will take place in Crestview, Florida in partnership with Vertex Aerospace Aircraft Integration & Sustainment (AIS) Division. “The program office looks forward to working with BAE Systems on the DoN LAIRCM installations,” said CAPT Steven Nassau, program manager for Naval Air Systems Command's PMA-207. “This competitive award will allow the Marine Corps to move from government depot installation to industry without a gap in services. It is a great reflection on the dedication of the KC-130J Mission Systems Team and the contracts office. It also speaks to the flexibility of both the Navy and industry.” BAE Systems' Intelligence & Security sector has extensive experience in advanced aircraft engineering, fabrication, installation, modification, systems integration, and logistics support, and has performed more than 200 separate complex modification programs involving over 2,200 aircraft. The BAE Systems and Vertex AIS team have installed Directional Infrared Countermeasures and DoN LAIRCM systems for the U.S. Air Force and foreign military customers under previous contracts. View source version on businesswire.com: https://www.businesswire.com/news/home/20200518005382/en/

Cannes, May 18, 2020 – The European Space Agency (ESA) has awarded two contracts to Thales Alenia Space, the joint company between Thales (67%) and Leonardo (33%), concerning EGNOS (European Geostationary Navigation Overlay Service). These contracts, fully financed under the European Commission H2020 programme concern study phases on the system evolution. They will call on Thales Alenia Space's expertise as program prime contractor for over 25 years to study and develop upgrades for the EGNOS satellite navigation system. The first contract concerns possible upgrades for EGNOS aeronautical services, designed to improve performances in order to increase landing safety under limited visibility conditions (from current CAT-I to CAT-II), over the current EGNOS footprint, focused on Europe. The second contract will study changes required to extend its aeronautical services worldwide. Based on state-of-the-art technologies, this upgrade will call on the A-RAIM (Advanced Receiver Autonomous Integrity Monitoring) concept and the global coverage of the Galileo satnav constellation. RAIM is an already deployed technology that assesses the integrity of signals in the receivers that are part of a global positioning system, mainly GPS. Galileo will now be incorporated in the advanced version of this concept, A-RAIM, to provide enhanced horizontal guidance performance, not possible with RAIM using only GPS. The new concept would thus provide “safety of life” aeronautical services, including approaches with vertical guidance, thanks to inputs from GPS and Galileo via EGNOS. “Today's contracts are key for satellite navigation in Europe and bolster Thales Alenia Space's European leadership in state of art satellite navigation systems, including Safety of Life services”, said Benoit Broudy, head of the Navigation business at Thales Alenia Space in France. He added: “Our successes on export markets, as in South Korea, validate our innovative approach that allows us to offer increasingly powerful and agile solutions to meet the evolving requirements of customers from around the world.” About EGNOS EGNOS, a European Union flagship program, is a satellite navigation system designed to improve positioning signals delivered by GPS. Developed by Thales Alenia Space as prime contractor, EGNOS was first deployed in 2005, began operating in open service mode in 2009 and provided Safety of Life service starting in 2011. The GNSS R&D activities are financed by the European Commission H2020 programme. They are managed by the European Space Agency through a delegation agreement from the European Commission. Safety of Life service, a success in export markets The EGNOS Safety of Life service is used to carry out precision airport approaches, especially landings, without requiring ground guidance systems. Building on its expertise in this field, Thales Alenia Space won a contract in 2016 from the Korean space agency to supply the Korean Augmentation Satellite System (KASS). With its Safety of Life capability, KASS is a regional Korean navigation system that will initially be used for aviation. It will provide critical services at several points of each flight, especially landing, so that, airports no longer need ground landing aid facilities. Along the same lines, in early 2019 ASECNA, the air navigation safety agency for Africa and Madagascar, chose Thales Alenia Space to handle a Phase B project that will include the supply of a pre-operational service in 2020 for a Satellite Based Augmentation System (SBAS) in sub-Saharan Africa, to provide an optimized satellite-based solution to support the growing air traffic in this region. The project recently took a major step forward, with validation of the system's architecture and main performance characteristics. This study is being carried out jointly by ASECNA and Thales Alenia Space, with funding from the European Union, as part of an ambitious program to develop the aviation sector in Africa. Set for completion by the end of the year, it also includes the supply of a pre-operational service, along with demonstrations of how to use the service in conjunction with partner airlines. Thales Alenia Space has now completed acceptance testing of the demonstrator, which will subsequently be deployed at various sites. ABOUT THALES ALENIA SPACE Drawing on over 40 years of experience and a unique combination of skills, expertise and cultures, Thales Alenia Space delivers cost-effective solutions for telecommunications, navigation, Earth observation, environmental management, exploration, science and orbital infrastructures. Governments and private industry alike count on Thales Alenia Space to design satellite-based systems that provide anytime, anywhere connections and positioning, monitor our planet, enhance management of its resources, and explore our Solar System and beyond. Thales Alenia Space sees space as a new horizon, helping to build a better, more sustainable life on Earth. A joint venture between Thales (67%) and Leonardo (33%), Thales Alenia Space also teams up with Telespazio to form the parent companies' Space Alliance, which offers a complete range of services. Thales Alenia Space posted consolidated revenues of approximately 2.15 billion euros in 2019 and has around 7,700 employees in nine countries. www.thalesaleniaspace.com THALES ALENIA SPACE – PRESS CONTACTS Sandrine Bielecki Tel: +33 (0)4 92 92 70 94 sandrine.bielecki@thalesaleniaspace.com Catherine des Arcis Tel: +33 (0)4 92 92 72 82 catherine.desarcis@thalesaleniaspace.com Marija Kovac Tel: +39 (0)6 415 126 85 marija.kovacsomministrato@thalesaleniaspace.com View source version on Thales: https://www.thalesgroup.com/en/worldwide/space/press-release/thales-alenia-space-wins-two-contracts-esa-study-future-upgrades

Nathan Strout The U.S. Space Force has awarded Northrop Grumman a $2.375 billion contract for two Next Generation Overhead Persistent Infrared satellites that will help provide ballistic missile warning for the military. Next Gen OPIR is to replace the Space-Based Infrared System, a crucial part of the nation's missile defense architecture. Utilizing infrared sensors, the satellites will be able to detect and track ballistic missile threats while being more survivable than the legacy system. The Space and Missile Systems Center plans to have five satellites in the constellation: three geosynchronous satellites built by Lockheed Martin, and two polar satellites being built by Northrop Grumman. Northrop Grumman was initially awarded a $47 million contract for system and payload requirements analysis and risk reduction for the two polar vehicles in June 2018. The $2.4 billion contract modification issued May 18 provides for Phase One design and development, the procurement of critical flight hardware, and risk-reduction efforts leading to critical design review. At this time, $70.5 million is being released. Work is expected to be completed by December 2025. Meanwhile, Lockheed is developing the three geosynchronous Next Gen OPIR space vehicles. That company was awarded $2.9 billion in August 2018 to begin work on the satellites, leading to critical design review. In October 2019, the Space and Missile Systems Center announced the system had passed preliminary design review. The Air Force has accelerated the timeline for Next Gen OPIR to get the first satellite delivered in 2025. That's required more money up front than initially expected, which was provided through a series of reprogramming requests in 2019. That became a source of tension between competing versions of the annual defense budgets in the House and Senate last year, but SMC credited that reprogramming with keeping Next Gen OPIR on track. https://www.c4isrnet.com/battlefield-tech/space/2020/05/19/northrop-grumman-receives-24-billion-for-two-missile-defense-satellites

By: Martin Banks   BRUSSELS – A report predicts that Brexit will be “more harmful and long-lasting” for the British army and U.K.'s defense sector than for the European Union. The exhaustive study by the Warsaw Institute, a leading European think tank, warns that the U.K.'s exit from the EU means existing arrangements and defense cooperation agreements “will need to be reassessed, completely changing the defense landscape of Europe.” It says, however, that an extension to the current transition period, set to end on Dec. 31, would “mitigate damage” caused by the split. Conversely for the EU side, it suggests that the British departure may have a “healing result,” as both France and Germany will be able to pursue “more comprehensive” defense policies for the remaining member countries. Such moves, it adds, was often blocked by the UK, “which believed that NATO would be sufficient as European peacekeeper.” Publication of the report by the Polish Institute is timely as the 1 July deadline set by both the EU and U.K. for deciding if there will be an extension to the talks is fast approaching. The document paints a largely grim picture for the post-Brexit defense sector, pointing out that companies from across Europe buy or sell parts to various British companies. A no-deal Brexit, which, given the lack of progress in the ongoing trade talks, most analysts currently say is by far the most likely outcome at the end of the year, “would mean price hikes and possible delays in European projects relying on British parts or know-how.” Companies likely to be impacted include industry giants like Airbus and products as “complex and important” for European security as the Eurofighter Typhoon. The independent institute, which specializes in geopolitics and international affairs, notes, “The expected crisis can be averted either by a free trade agreement or, should this option not be possible, a bilateral trade agreement between UK and several if not all EU27 states abolishing tariffs and border checks. “Should these measures not be in place, many projects run by European companies may be hit with delays or even cancellations.” The predicted consequences of Brexit for the British army and U.K.'s defense sector are more harmful and long-lasting than those expected to be felt by the EU. This, the non-profit Institute argues, is because Brexit “will strip the U.K. from valuable training opportunities and will take away some of its international power-projection abilities.” “The U.K. will no longer be able to affect the policies that are agreed upon as the part of the Common Security and Defence Policy," or CSDP. But the “biggest downside” of the divorce will be that fewer resources will be available to make up the future peacekeeping and advisory operations run by the EU worldwide. “There will also be less finances available for these operations coming from the CSDP as there will be less contribution paid towards it.” The third round of talks between the two sides concluded last Friday with little progress being made. The UK government has ruled out an extension to the transition period. David McAllister, Chairman of the Committee on Foreign Affairs in the European Parliament, said, “From the very beginning, it was to be expected that the negotiations would not be easy. But we started them from a position of certainty, goodwill, shared interests and purpose.” The German MEP, also chair of the UK Coordination Group in the Parliament, added, “In my opinion, there is still a strong, shared interest of both the EU and the U.K. to sign an ambitious and comprehensive new partnership governing their future relations.” https://www.defensenews.com/global/europe/2020/05/19/study-sees-british-defense-sector-hurting-after-brexit

By: Aaron Mehta WASHINGTON — If Ukroboronprom is to continue as anything more than a local defense firm, the Ukrainian conglomerate will need to find industrial partners abroad, according to director general Aivaras Abromavicius. And attracting those foreign investors will be nearly impossible without a set of needed reforms to the government-owned company, Abromavicius warned Tuesday— reforms he acknowledged seem to be stalling out at the government level. “Western investors and Western companies are very sophisticated and they're very smart. You know, Ukroboronprom for years has had a tainted reputation,” Abromavicius said at an event hosted by the Atlantic Council. “So it is very clear that almost no Western company of any reputation and size is interested in directly acquiring any assets in the defense sector in Ukraine because of the reputational risks.” That is one of the many reasons Abromavicius is pushing reforms of the company, whose questionable reputation was further damaged by a massive scandal in 2019 involving executives receiving kickbacks on parts smuggled in from Russia. The scandal rocked Ukrainian politics, with some arguing it was a major factor in the loss of the presidency by Petro Poroshenko. President Volodymyr Zelenskiy, inaugurated in May 2019, launched an effort to clean up the mess, which included appointing Abromavicius, a former minister of economy and trade, to oversee a reorganization of the company. Abromavicius, who is pushing a full financial audit of the company alongside a potential reorg of its business units, stressed that “we need to raise governance standards to completely different levels,” factoring in increased transparency, if the company is to have any hope of working with nations abroad. And, he said, Ukroboronprom needs partnerships to survive as anything other than a local, small concern. “The way forward for us is to do joint ventures,” Abromavicius said. “Obviously the way forward is just to set up production facilities in Turkey, in India, you now, United Arab Emirates, whereby our [intellectual property] and their financial resources [combine] together to produce for the domestic and global needs.” While acknowledging that U.S. firms are reluctant to work with Ukroboronprom given its history, such a tie-up would be cheap for any of the major American defense companies, said the Atlantic Council's Michael Carpenter. And, he warned, the American government may soon have a major geopolitical incentive to try and push a Lockheed Martin or Raytheon to work with the Ukrainians. “With the economic chaos that's being wrought by the COVID-19 pandemic, I predict you will see China moving into a lot of countries in Eastern Europe and looking to buy up distressed assets at bargain prices, and it's going to be crucial that when Ukroboronprom looks for outside investors or looks for doing joint ventures, that U.S defense industry is poised to partner, and to invest,” Carpenter said. “It's going to be very important for, I think, the U.S. government also to push our defense industry a little bit to look at this as an opportunity,” continued Carpenter. “It's going to be important from a sort of strategic sense not to allow this industrial base to get snapped up by Chinese or other countries that are going to be, frankly, operating in a predatory manner in the months ahead, and that we allow for that matchmaking, not just with U.S. firms but with European firms as well to go forward.” While not directly tied to defense matters, Boeing is reportedly considering some sort of team up with Antonov on the cargo side, with the Ukranians pushing for a formal joint venture. Beijing, meanwhile, has attempted major inroads in Ukraine, with Chinese aerospace firm Skyrizon attempting to purchase a controlling stake in engine manufacturer Motor Sich and the Tianjiao Aviation Industry Investment Company attempting to purchase a chunk of the Antonov facility which produced the An-225 Mriya. China has emerged as a major economic trading partner with Ukraine in the years since Kyiv cut off relations with Russia. (Antonov falls under the Ukroboronprom umbrella.) Pentagon acquisition head Ellen Lord has warned several times since the COVID-19 pandemic began that the DoD needs to be keeping an eye on both the domestic and foreign defense industry, with the expectation China will attempt to use the economic downturn to its advantage. “Western allies took a backseat, ignored the Ukrainian defense sector, and you know, [the] Chinese stepped in and snapped up the best of the private companies in this sector in Ukraine,” said Abromavicius. “So I would urge, obviously, our allies to take a better look at the defense sector which is being reformed right now in Ukraine. And, you know, show us, show more interest in doing things together.” While Zelenskiy came into office promising major reforms to the country, activists have accused his government of stalling out on many of the promised efforts. Abromavicius “fully” acknowledged that the reorganization of Ukroboronprom has slowed recently, saying he hopes Western officials can “give it a kick” to get things moving again, but he expressed his hope that in the coming weeks there may be legislative action. “So it is a bit too early to say that we have a full support, because I say that everybody and their dog has its own view of what Ukroboronprom reform should look like,” he said. “And I think overall, the Defense and Security Committee is a strong supporter, Ministry of the Economy is a strong supporter, I believe that president's offices as well. And I hope that Ministry of Defense is on our side” soon, he said. https://www.defensenews.com/global/europe/2020/05/20/scandal-ridden-ukroboronprom-seeks-fresh-start-in-ties-with-western-arms-makers