The Cabinet of Ministers of Ukraine has approved an initiative by the Ministry of Defence of Ukraine to attract private investment in the construction of protected production infrastructure for defence industry enterprises.
The amendments to Government Resolution No. 1494 of 19 November 2025 expand opportunities to establish, relocate and scale up production capacities within Ukraine’s defence industry.
Private Investment in Protected Production Facilities
Under the new rules, not only defence industry enterprises but also other legal entities, including private investors and developers, can act as clients for the construction of underground production facilities. They will be able to finance construction using their own or borrowed funds and, upon completion, transfer the facilities or parts thereof to defence manufacturers through ownership, lease or other legally permitted forms of use.
“Ukrainian defence enterprises must not only increase production but also protect their facilities from enemy attacks. To achieve this, we are opening up opportunities for private capital to invest in the construction of underground infrastructure. Defence enterprises will gain access to protected production facilities, investors will have a new investment opportunity, and the state will gain additional capacity to ensure uninterrupted production of weapons and military equipment without placing an additional burden on the budget,” stated Anna Gvozdiar, Deputy Minister of Defence of Ukraine.
The new mechanism covers underground production workshops and other infrastructure facilities, as well as associated above-ground structures necessary for their operation, protection and maintenance. Eligible enterprises include Defence City residents, companies listed in the register of state contract contractors, and manufacturers designated by the Ministry of Defence of Ukraine as critically important for meeting the needs of Ukraine’s Defence Forces.
How the New Construction Mechanism Will Work
Construction will be carried out under an agreement between the investor and the defence industry enterprise, concluded before construction begins. The agreement will specify financing arrangements, construction timelines, procedures for transferring the facility and the terms of its subsequent use for defence production.
The resolution establishes specific requirements for such projects:
- At least 25% of the total area — if only part of a completed facility is transferred to a defence enterprise, it must account for at least one-quarter of the facility’s total area and be suitable for production activities.
- At least one year — the minimum term for a lease or other fixed-term right of use. The enterprise will have the right to request an extension until the end of martial law.
- Five working days — the period within which the Ministry of Defence of Ukraine will review the draft agreement and the investor’s documents for compliance with the established requirements.
The Ministry of Defence of Ukraine continues to create conditions for the development of Ukraine’s defence industry, the attraction of private investment and the expansion of production capacities. The new mechanism is part of the state’s systematic efforts to strengthen the defence industry, improve the protection of production infrastructure and ensure the uninterrupted manufacture of weapons and military equipment for the needs of Ukraine’s Defence Forces.