The Ministry of Defence of Ukraine continues to implement its preferential lending programme for defence industry enterprises. Since the programme was launched, 211 loan agreements have been signed, totalling UAH 12,509.88 million.
Financing to Scale Up Production
Under the programme, defence industry enterprises can obtain loans of up to UAH 500 million for up to five years to finance investment projects and for up to three years to cover working capital needs.
“Preferential loans give manufacturers the opportunity to invest in their own capabilities, purchase the necessary equipment and components, and increase production volumes more quickly. Our task is to ensure that these instruments directly contribute to strengthening Ukraine’s defence industry and increasing the supply of weapons to the Defence Forces of Ukraine,” stated Anna Gvozdiar, Deputy Minister of Defence of Ukraine.
The interest rate for enterprises is 5% per annum, with the government covering the remainder of the financing cost.
Government Support for Defence Production
Loan funds can be used to develop, manufacture, repair, modernise and dispose of weapons, military and special equipment, ammunition and their components. The programme allows manufacturers to finance both the development of production capacity and day-to-day needs required to fulfil defence contracts.
The preferential lending programme for defence industry enterprises was launched in 2024. It is available to enterprises designated as critically important to the functioning of the economy during the special period in the defence industry sector.
For more information on how defence manufacturers can apply for a preferential loan.