The Ministry of Defense has initiated the launch of a special legal regime, Defence City, a state support instrument for enterprises of the defense-industrial complex. The regime is expected to come into effect on January 5, 2026, following the adoption of the relevant decisions by the Cabinet of Ministers.

This was reported by Minister of Defense of Ukraine Denys Shmyhal.

According to him, the Ministry of Defense has submitted to the Government a package of regulatory acts necessary to launch Defence City. The initiative предусматривает tax support for defense industry enterprises in exchange for production development, modernization, the introduction of new technologies, and the conduct of research.

The Ministry of Defense emphasizes that Defence City is viewed as a modern model for developing the defense industry, capable of accelerating responses to frontline needs. The special regime is also expected to open opportunities for attracting international investment, creating joint ventures with partners, and facilitating technology transfer.

The Government is expected to consider the submitted documents at one of its upcoming meetings.