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Economy Ministry plans to cut defense industry mobilization exemption quota from 100% to 85% – Ukrainian Council of Defence Industry

mobilization exemption

The Ministry of Economy proposes reducing the mobilization exemption quota for defense industry employees from 100% to 85%. The Ukrainian Council of Defence Industry opposes the move and calls for retaining the option to grant exemptions to up to 100% of employees liable for military service at companies in the sector.

This was stated on the Ukrainian Council of Defence Industry’s Facebook page.

What the ministry proposes

The Economy Ministry has submitted a draft Cabinet of Ministers resolution for approval that would limit mobilization exemptions to 85% of employees at defense industry companies designated by the Defense Ministry as critically important to the functioning of the economy.

The Ukrainian Council of Defence Industry believes the proposed reduction does not take the staffing needs of defense manufacturing into account.

Retaining production teams directly affects supplies to the military, as production volumes, delivery schedules, new product development and the ability to respond quickly to frontline needs depend on the availability of skilled workers.

"Ukraine’s defense industry continues to grow: new production facilities are opening, companies are expanding capacity and adopting new technologies. Increasing the share of Ukrainian weapons and equipment in the Defense Forces, localizing component production and reducing dependence on imports require additional specialists," the Council noted.

The statement emphasizes that building such teams takes years. Companies invest in recruiting and training employees who master specialized technologies and production processes. Retaining these specialists enables manufacturers to plan production expansion and undertake new commitments to the military.

The Ukrainian Council of Defence Industry stresses that lowering the deferment quota will create additional uncertainty for companies at a time when they are expected to increase weapons production. The consequences could affect both manufacturers and military units awaiting their products.

"We call on the Economy Ministry to abandon the proposed reduction of the mobilization exemption quota to 85%, and on the Defense Ministry and the Cabinet of Ministers to support retaining the option to grant deferments to up to 100% of employees liable for military service at defense industry companies that meet the established requirements," the statement reads.

The Council says it is ready to help develop a solution together with manufacturers and government bodies, provide information on the sector’s staffing needs and assess the impact of the proposed changes on the fulfillment of defense orders.

The Ukrainian Council of Defence Industry  emphasizes that mobilization exemption rules must take into account the defense industry’s development needs and the need to increase domestic weapons production in Ukraine.

As previously reported, around 1.4 million people in Ukraine have mobilization exemptions through their employers. Following a review of critically important companies’ status over the summer, approximately 15% of them were unable to confirm their status, although the figure subsequently rebounded quickly.