The Ministry of Defence of Ukraine continues to provide state support to defence industry companies through the preferential financial leasing programme.
The programme enables Ukrainian manufacturers to obtain the assets needed to modernise production facilities and scale up production without paying their full cost upfront.
The mechanism covers assets required for the development, manufacture, repair, modernisation and disposal of weapons, military and special equipment, ammunition and their components, as well as other defence-related products.
What assets are available under the programme
Under the preferential financial leasing programme, defence industry companies can obtain:
- special-purpose and general-purpose equipment and machinery;
- mobile production platforms;
- dual-use equipment;
- technological equipment;
- automation systems;
- electronic communications and cybersecurity equipment;
- vehicles for commercial and production purposes;
- railway wagons and buses;
- non-residential real estate required for business operations.
Non-residential real estate acquired under the programme may not be transferred to third parties for use.
Terms of preferential financial leasing
The preferential financial leasing programme was introduced by the Cabinet of Ministers of Ukraine at the initiative of the Ministry of Defence.
The programme is available to companies designated as critically important for the functioning of the economy during the special period in the defence-industrial sector.
Eligible companies effectively pay 5% per annum under financial leasing agreements, while the state compensates the remaining financing costs.
The programme allows defence manufacturers to modernise production capacity and scale up operations without a significant one-off financial burden.
More information on the programme’s terms and participation procedure is available in the Ministry of Defence guidance on preferential financial leasing for defence industry companies.