Ministry of Defence develops a comprehensive plan of urgent measures for the development of domestic defence industry enterprises: Denys Shmyhal

The capabilities of the Ukrainian defence industry have shown unprecedented growth in recent years: from USD 1 billion to USD 35 billion.

‘These figures were made possible by systematic state policy, optimisation of the regulatory framework, investment attraction and scaling up of domestic production,’’ said Defence Minister Denys Shmyhal.

In particular, during the year, enterprises in the industry received loans on preferential terms for a total amount of UAH 5.6 billion.

In addition to the continuation of credit programmes, preferential leasing will be launched, allowing arms manufacturers to access transport and equipment at a reduced rate of 5% per annum.

At the beginning of January 2026, a special legal regime called Defence City was introduced as a tool for state support of defence industry enterprises. Its residents will receive tax incentives, simplified customs procedures, etc.

Also, on the initiative of the Ministry of Defence, the mechanism for financing state-owned defence enterprises that have suffered enemy attacks was updated last year. Manufacturers have already received more than UAH 1.5 billion in budget support to ensure the resumption of their activities.

"The Ministry of Defence is developing a comprehensive plan of urgent measures for the development of domestic defence industry enterprises, becoming part of the new strategy for the development of the defence-industrial complex," concluded the Minister of Defence of Ukraine.