Journal of Security and Sustainability Issues

The article investigates the specifics of the military-industrial complex functioning in Ukraine. Theoretical analysis has shown that the development of the country’s defense industry and the state of enterprise`s financial security within this industry have a dual impact on various components of the national security system: is a realization tool of the national interests, which in turn creates opportunities for its strengthening, and it can also be a source of threats to the state`s economic security by its components due to the accumulation of internal negative elements on enterprises (insufficient development and low level of military products competitiveness, obsolescence of fixed assets at enterprises, etc), as well as due to the low ability of enterprises to respond adequately to the challenges arising from changes in external conditions and factors (disruption of sustainable cooperation, increased competition between different military products in domestic and foreign markets, etc). The activity legal framework, legal status and structure of the state concern “Ukroboronprom” have been defined. The strategic growth priorities of defense industry of Ukraine have been cleared up. The financial security of enterprises operating in the defense industry can be ensured not only by using passive mechanisms to resist internal and external destructive factors, but also by mechanisms of efficient interaction with the environment. This in turn allows the company to avoid the need to invest capital in sources of raw materials, production or creation of distribution channels. Access to certain technologies or knowledge, the advantages of narrow specialization and the possibility of increasing consumer value, these all are important reasons for establishing strategic cooperation between different companies.