Defence City in Ukraine: what benefits will weapons manufacturers receive

Creating favorable conditions for Ukrainian arms manufacturers

According to hvylya.net: Defense Minister Denys Shmyhal reported that more favorable conditions are being actively created for domestic arms manufacturers in Ukraine. The President of the country has signed laws to launch a special legal regime called Defence City.

• exemption from profit tax (subject to reinvestment);
• exemption from land and property taxes (if used in production);
• exemption from environmental tax;
• simplification of customs procedures;
• simplified regime for international transfer of defense products;
• features of relocation and implementation of measures to enhance the protection of production capacities are supported by the state.

Manufacturers of the defense industry, which are of strategic importance for the state's defense capability and meet transparency requirements, will be able to openly join Defence City. The Defense Minister emphasized: 'We are creating even more favorable conditions for Ukrainian arms manufacturers. We act quickly and encourage our manufacturers to do the same. Our weapons are our smart power.'

The Ukrainian authorities are taking steps to support domestic weapons manufacturers by providing them with tax exemptions and simplifying customs procedures. This will contribute to the development of defense production in the country, enhance its defense capability, and make Ukrainian weapons even more competitive in the international market.