Creating protected underground infrastructure for Ukraine’s defence industry and expanding incentives for Defence City residents will be among the key priorities of the Ministry of Defence of Ukraine, Deputy Defence Minister Anna Gvozdiar said in a Facebook post announcing her return to the ministry after serving as an adviser to the Defence Minister.
One of the ministry’s main priorities is to create the regulatory and technological framework needed to move defence production underground in response to continued Russian attacks. According to Gvozdiar, a comprehensive package of amendments to Cabinet of Ministers Resolution No. 1494 has already been prepared.
Under the proposed model, private investors and developers will be able to build protected facilities using their own or borrowed funds and subsequently transfer them to defence industry companies through ownership, use or lease arrangements. Some of these technological solutions could eventually be expanded beyond the defence industry.
At the same time, the government is expanding the special Defence City legal regime, designed to create favourable conditions for the development of Ukraine’s defence technology sector. So far, 51 defence companies have obtained Defence City resident status, with combined qualifying revenue exceeding UAH 93 billion.
Defence City residents already benefit from tax, customs and currency incentives, as well as simplified procedures for exempting employees from military mobilisation.
The Ministry of Defence is now working with lawmakers, government officials and economic experts on the next package of measures to expand opportunities for the sector and enable companies to scale up more rapidly.
