The Ministry of Defense has granted Defence City resident status to its first company. It became one of Ukraine’s largest drone manufacturers, known in particular for producing Vampire drones, Shrike drones, and Shahed interceptor UAVs.

This was reported on the Ministry of Defense website.

“Defence City is a systemic state policy aimed at creating favorable conditions for scaling defense production, attracting investment, and developing Ukraine’s defense industry. We invite Ukrainian manufacturers to join Defence City and become part of a new industrial ecosystem that strengthens the state’s defense capability”, — said Minister of Defense of Ukraine Denys Shmyhal.

Residents of the new legal regime receive real tools to develop production, including:

  • exemption from corporate income tax provided funds are reinvested in development; 
  • exemption from land, property, and environmental taxes; 
  • simplified customs procedures; 
  • special guarantees for information protection and data confidentiality during the regime’s operation; 
  • state support for relocation and increased protection of production facilities if necessary. 

How a defense industry enterprise can become a Defence City resident

The government-approved procedure предусматриває submission to the Ministry of Defense of an application for Defence City resident status along with a package of documents, including a compliance report with legislative requirements, financial and audit statements, and information on participation in the execution of state defense contracts.

Documents may be submitted either electronically with a qualified electronic signature to the address [email protected] , or in paper form by mail to: 6 Povitrianykh Syl Ukrainy Avenue, Kyiv, 03168.

Based on the review of submitted documents, the Ministry of Defense makes a decision to grant or deny resident status, or to return the application without consideration. In the event of a positive decision, information about the resident is entered into the Defence City register.