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Shmyhal: Ukraine’s defense industry shows unprecedented growth from $1bn to $35bn
Over the past years, the capabilities of Ukraine’s defense-industrial complex have shown unprecedented growth, from $1 billion to $35 billion.
Ukraine’s Defense Minister Denys Shmyhal said this, Censor.NET reports.
What is known?
As noted, these figures were made possible by a systemic state policy, optimization of the regulatory and legal framework, attracting investment, and scaling up domestic production.
What has been done?
- Over the year, enterprises in the sector received loans on preferential terms totaling 5.6 billion hryvnias.
- In addition to extending lending programs, preferential leasing is launching, which will give arms manufacturers access to vehicles and equipment at a reduced rate—5% per year.
- In early January 2026, a special legal regime, Defence City, was launched, an instrument of state support for defense-industry enterprises. Its residents will receive tax incentives, simplified customs procedures, and more.
- At the initiative of the Ministry of Defense, last year the mechanism for financing state defense enterprises that came under enemy attacks was updated. Manufacturers have already received more than 1.5 billion hryvnias in budget support to ensure the restoration of their operations.
Immediate action plan
According to Shmyhal, the Ministry of Defense is developing a comprehensive immediate action plan to develop domestic defense-industry enterprises, which will become part of a new strategy for the development of the defense-industrial complex.
