Defence City expands: 63 defence industry companies with combined revenue of nearly UAH 111.3 billion – Defence Ministry
Ukraine’s Ministry of Defence continues to expand the number of Defence City residents. The special legal regime providing state support to defence industry companies now includes 63 domestic enterprises.
The Ministry of Defence of Ukraine reported this, according to Censor.NET.
Since the regime came into effect, the number of residents has more than doubled: there were 31 at the end of May and 45 in July.
Defence City’s impact on scaling up Ukraine’s defence industry
The combined qualifying revenue of the 63 residents, revenue from sales of weapons and military equipment, amounts to nearly UAH 111.3 billion.
"Defence City is a systemic tool for developing Ukraine’s defence industry. We are creating conditions that allow manufacturers to invest in their own development, protect their teams and production facilities, scale up production faster and develop international cooperation," said Hanna Hvozdiar, Deputy Minister of Defence of Ukraine.
The expansion of Defence City is part of the Defence Ministry’s systematic efforts to create long-term, predictable conditions for Ukrainian manufacturers of weapons and military equipment. The regime is designed to help companies direct more resources towards developing production and technology and increasing manufacturing capacity.
Benefits of residency for developing defence production
Defence City is a special legal regime providing state support to defence industry companies. Its residents are eligible for tax and customs incentives, opportunities to relocate and improve the protection of production facilities, restricted access to sensitive information in public registers, the leasing of state property without auctions, and simplified procedures for certain aspects of defence exports.
To obtain Defence City resident status, a company must check that it meets the requirements established by law and submit an application and the required supporting documents to the Ministry of Defence of Ukraine.
The ministry reviews applications within 10 working days. If approved, resident status is formalised by an order of the Ministry of Defence of Ukraine, and the company’s details are entered in the Defence City register.
The Defence Ministry previously published a detailed guide to obtaining Defence City resident status and a list of the required documents.
