Streamlined Process for Leasing State Assets
The Cabinet of Ministers of Ukraine has approved a new policy simplifying how defense industry companies can lease state property during martial law. Under this decision, arms manufacturers can now secure facilities and factories without going through mandatory public auctions. Prime Minister Yuliia Svyrydenko explained that the simplified leasing mechanism targets enterprises involved in producing missile systems and ammunition, manufacturing explosives and propellants, as well as developing, testing, and deploying advanced weapon prototypes and technologies.
Criteria for Prospective Lessees
The government has set two mandatory legal conditions for potential tenants:
- The company must hold an officially recognized status as a critically important enterprise for the economy and public welfare during special periods.
- The manufacturer must be formally listed by Ukraine’s Ministry of Defense in the closed registry of state contract executors (state defense orders).
Additionally, on May 21, the Cabinet simplified the process for Ukrainian defense firms to confirm eligibility for customs benefits when importing components for weapon production. Currently, over 900 state-owned and private companies in Ukraine supply the Defense Forces with arms, military equipment, and technology, employing more than 300,000 workers.
These measures aim to rapidly scale up production capacity for the Defense Forces. As Svyrydenko emphasized,
“This will allow us to launch new production sites faster and quickly increase output for the needs of the Defense Forces.”In response, President Volodymyr Zelenskyy convened a meeting with military leaders, diplomats, and government officials to discuss key topics, including strengthening air defense systems, launching new formats of defense cooperation with international partners, and preparing for closed diplomatic negotiations.
Simplifying the leasing of state property for defense enterprises marks a critical step toward improving production efficiency during wartime. It reduces bureaucratic hurdles and accelerates processes essential for meeting the needs of the Armed Forces of Ukraine. Given the ongoing war, the effectiveness of the defense industry is paramount, making such legislative adjustments potentially crucial for the country’s ability to counter external threats.
In a related development, the government has also taken steps to identify potential military recruits among those who have previously evaded conscription. This initiative aims to bolster the ranks of the armed forces during a critical time. For further details on this recruitment strategy, you can read more about it here.