Number of Defence City residents has risen to 31: their combined revenue from arms sales totals nearly 90 billion hryvnias, - Ministry of Defense
A total of 31 Ukrainian defense manufacturers have now been granted resident status in Defence City—a special legal framework providing state support to defense industry enterprises. Among them are manufacturers of UAVs, missiles, and other equipment.
This was reported by the Ministry of Defense of Ukraine, according to Censor.NET.
Details
As noted, following the addition of new arms manufacturers to Defence City, the total qualified revenue (i.e., revenue from arms sales) of its residents reached 89.7 billion hryvnia.
According to Anna Hvozdiar, an advisor to the Minister of Defense of Ukraine, the expansion of Defence City demonstrates the high demand among Ukrainian manufacturers for practical state support tools. This platform is becoming a hub for the consolidation of the Ukrainian defense industry, making the sector stronger and its prospects for development and export more ambitious.
Residents of Defence City receive a range of practical benefits designed to help them scale up their defense production.
Defence City Preferences
The government is creating special conditions for weapons manufacturers in Defence City, including:
- Exempts from income tax—provided that the funds saved are directed toward the development of production and technology.
- Simplifies customs procedures—establishes a separate customs administration regime for the import of components, equipment, and production operations.
- Exempts from land and environmental taxes—to reduce the operational burden on production sites.
- Creates conditions for currency liberalization—supports the attraction of international financing and specific currency mechanisms for residents.
- Protects sensitive information about enterprises—restricts access to registry data and minimizes the disclosure of information that could affect production safety.
- Provides service and consulting support through the Ministry of Defense of Ukraine—offering assistance to residents on matters related to the application of the regime, interaction with government agencies, and the implementation of support mechanisms provided for by law.
- Supports the relocation and enhanced security of production facilities—creates specific mechanisms for the relocation and re-establishment of production.
- Simplifies the export of defense products—enables manufacturers to export military goods without obtaining separate export licenses.
- Provides additional opportunities for reserving personnel—Defense City resident status serves as grounds for designating a company as critical to the defense industry, allowing it to reserve up to 100% of its employees subject to military service in accordance with established procedures.
