Ukrainian defense industry capabilities have grown from $1 billion to $35 billion in recent years, Defense Minister Denys Shmyhal said on January 9.

“This was made possible by systematic state policy, regulatory optimization, investment, and scaling domestic production”, — he said.

Enterprises received 5.6 billion UAH in preferential loans last year. Preferential leasing for equipment and transport at 5% annual interest was also launched. A special legal regime “Defence City” started in January 2026, providing tax incentives and simplified customs for residents. Over 1.5 billion UAH in budget support has already been provided to restore operations after enemy attacks.