Today, the Government of Ukraine approved a package of decisions developed by the Ministry of Defense that are necessary to launch the Defence City initiative.

This was reported on the evening of December 17 by Ukraine’s Minister of Defense, Denys Shmyhal.

“This concerns comprehensive state support for Ukrainian arms manufacturers aimed at scaling up and modernizing production and generating innovation.

Upon the submission of the Ministry of Defense, the Government has provided for:

  • the procedure for maintaining the Defence City register
  • the methodology for calculating the share of defense income (qualified income)
  • the procedure for monitoring the use of profits exempt from taxation that are directed toward business development
  • the procedure for obtaining resident status and the procedure for annual confirmation of compliance with the regime’s requirements
  • protection of data of defense industry enterprises within Defence City through the submission of an application to the Ministry of Defense indicating which public registers or information the manufacturer seeks to restrict access to for security reasons
  • an algorithm for relocation and protection of production facilities
  • a mechanism for interaction between central and local authorities under the overall coordination of the Ministry of Defense.

The special legal regime for supporting the Ukrainian arms industry will be open to enterprises that are of strategic importance to Ukraine’s defense capability and meet the established standards and criteria”, — Denys Shmyhal noted.