The Ministry of Defence of Ukraine continues to expand the number of Defence City residents. The special legal regime providing state support to the defence industry now brings together 63 Ukrainian enterprises.
Since the regime was launched, the number of its residents has doubled, from 31 at the end of May to 45 in July.
Defence City Strengthens Ukraine’s Defence Industry
The 63 residents have combined qualifying revenue of nearly UAH 111.3 billion, representing revenue from the sale of weapons.
“Defence City is a comprehensive instrument for developing Ukraine’s defence industry. We are creating conditions that enable manufacturers to invest in their own development, protect their teams and production facilities, scale up production more quickly, and expand international cooperation,” stated Anna Gvozdiar, Deputy Minister of Defence of Ukraine.
The expansion of Defence City is part of the Ministry of Defence’s systematic efforts to establish long-term, predictable conditions for Ukrainian manufacturers of weapons and military equipment. The regime is designed to help enterprises allocate more resources directly to developing production, advancing technologies and expanding their capabilities.
Special Conditions for Defence Manufacturing
Defence City is a special legal regime providing state support to defence industry enterprises. Its residents are eligible for tax and customs incentives, opportunities to relocate and improve the security of their production facilities, restrictions on public access to sensitive information in official registers, the lease of state-owned property without auctions, and simplified procedures for certain defence exports.
To obtain Defence City resident status, an enterprise must verify that it meets the requirements established by law and submit an application and the required set of documents to the Ministry of Defence of Ukraine. The Ministry reviews applications within 10 working days. If the application is approved, the status is granted by an order of the Ministry of Defence of Ukraine, and the enterprise is entered in the Defence City register.
Detailed instructions and the list of required documents are available in the Ministry’s guidance.