More than 100 military units of Ukraine’s Defence Forces have already joined the initiative, having destroyed over 17,000 reconnaissance and…
The government has adopted a package of decisions to launch Defence City starting January 5, 2026.
Prime Minister of Ukraine Yuliia Svyrydenko announced this on the evening of December 17.
Already 50% of weapons for the Ukrainian Armed Forces are produced in Ukraine, and the government is working to increase these capabilities. It is precisely for this purpose that Defence City has been created — a special legal regime for the development of the defense ecosystem.
Yuliia Svyrydenko explained what exactly was approved today:
- Procedure for obtaining Defence City resident status: approval of the procedure for maintaining the register, submitting and reviewing applications for resident status, and the methodology for calculating the share of defense revenue (qualified income).
- Control mechanisms: establishment of procedures for monitoring the use of profit exempt from taxation. It must be directed toward business development, as well as the procedure for annual confirmation by residents of compliance with the regime’s requirements.
- Protection of sensitive information: a resident will be able to submit an application to the Ministry of Defense and determine which public registers/data should have restricted access for security reasons.
In addition, the procedure for relocation and increasing the protection of production facilities of Defence City residents was approved.
By government decision, methods of interaction between central and local authorities, financing, monitoring, and reporting were defined.
Regional military administrations must appoint responsible coordinators within one month; overall coordination is ensured by the Ministry of Defense.
Funding for these measures is provided for in the State Budget–2026. Fifty percent of personal income tax paid by residents is credited to a special fund of the community budget — for infrastructure and support of relocation or for measures to enhance the protection of production facilities.
“Manufacturers receive clear conditions for development and protection, and the state receives mechanisms of control and security. I thank the Ministry of Defense for its consistent work on improving conditions for Ukrainian weapons manufacturers”, — Yuliia Svyrydenko noted.
