The Ministry of Defence of Ukraine continues to develop financial instruments to support domestic defence manufacturers. Since the launch of the preferential financial leasing programme, 54 agreements have been signed for a total of UAH 244.53 million.
The state support mechanism was introduced by a resolution of the Cabinet of Ministers of Ukraine in late 2025.
Preferential Leasing Helps Defence Manufacturers Expand Production Capacity
The programme enables defence industry enterprises to acquire essential equipment, machinery and other fixed assets without having to pay their full cost upfront. This helps reduce the financial burden on manufacturers, spread costs over time and allocate part of their own funds to other production needs.
“The ability of Ukraine’s defence industry to rapidly scale up production directly affects the supply of essential weapons and equipment to the Defence Forces. Preferential leasing helps manufacturers invest in equipment and modernise their production facilities while preserving resources needed to fulfil production commitments. Our task is to develop financial instruments that provide Ukrainian manufacturers with greater opportunities to grow and strengthen the country’s defence capabilities,” stated Anna Gvozdiar, Deputy Minister of Defence of Ukraine.
The programme provides financing for the acquisition of technological equipment, machinery, vehicles, automation systems and other assets required for the production, repair and modernisation of weapons, military and specialised equipment, ammunition and their components.
How Preferential Leasing Works
Under the programme, state support reduces the effective cost of leasing for participating enterprises to 5% per annum. The government covers the difference between the lessor’s standard remuneration rate and the subsidised rate.
The maximum financing amount under a single agreement is UAH 500 million, with a leasing term of up to five years. The programme is available to defence industry enterprises designated as critically important to the functioning of the economy during a special period within the defence industry sector.
To participate, an enterprise must apply to an authorised lessor, which verifies its defence industry status, assesses its financial capacity and determines whether the asset to be leased meets the programme’s requirements.
The Ministry of Defence of Ukraine continues to work on expanding access to state-backed financial instruments for defence industry enterprises. These mechanisms help Ukrainian manufacturers upgrade equipment, develop production capacity and increase the output of weapons and military equipment to meet the needs of the Defence Forces of Ukraine.