Parliament Approves Defence City: What Benefits Will Ukrainian Defence Industry Receive

Parliament has supported the draft laws on Defence City – a special legal regime aimed at supporting domestic enterprises of the defense industry. According to the Ministry of Defense, the goal of this special regime is to increase the production of Ukrainian weapons and military equipment, develop technologies, attract investments, and enhance the capabilities of the Defense Forces.

'Our key goal is to fully equip the Defense Forces, develop our own weapons and equipment, and ensure the security of the state through a strong, capable army,' said Ukraine's Minister of Defense Denys Shmyhal.

Participation in Defence City can be taken by defense industry enterprises that are strategically important for the country's defense capability, meet transparency requirements and other criteria, and have no ties with the aggressor state. The main rule is that a significant portion of the enterprise's income must be related to defense production.

Advantages for Defence City Residents

Residents of Defence City will have advantages such as exemption from profit tax until 2036, land and property tax, environmental tax, simplified customs procedures during martial law and for one year after its end, simplified regime for international transfer of defense products, and others.

The state begins a special legal regime of Defence City to support domestic enterprises of the defense industry. The initiative aims to increase the production of Ukrainian weapons and equipment, develop technologies, and enhance the country's defense capabilities, which will be an important step in strengthening national security.