Defence City is expanding: the number of Ukrainian defence companies operating under the special regime has risen to 51, up from 45 at the end of July.

Ukraine’s Ministry of Defence reported this.

Several new defence companies have joined Defence City over the past few weeks. By comparison, at the end of July 45 companies of Ukraine’s defence industry held resident status.

What Defence City offers

Resident status gives companies access to a range of state support instruments.

These include tax and customs incentives, assistance with relocating and protecting production facilities, enhanced protection of sensitive information, and simplified procedures in certain areas of exports.

Defence City is thus gradually becoming one of the key systemic mechanisms for developing Ukraine’s defence industry. A growing number of residents means more manufacturers have the conditions to scale up production, attract investment and secure additional protection for their facilities.

“Defence City is becoming one of the systemic instruments for developing Ukraine’s defence industry. The growth in the number of residents means that more and more manufacturers are getting the conditions to scale up production, attract investment and protect their facilities,” said Hanna Hvozdiar, Adviser to Ukraine’s Minister of Defence.

The Ministry of Defence backs Defence City’s development

Defence City was established with the involvement of Ukraine’s Ministry of Defence as a special legal regime designed to support Ukrainian weapons manufacturers and create favourable conditions for scaling up defence production.

The growth in the number of residents from 45 at the end of July to 51 today points to the programme’s continued expansion and its reach across Ukraine’s defence industry.

As ArmyInform reported earlier, Ukrainian defence companies have already received 167 soft loans totalling more than UAH 10 billion under a state support programme run by the Ministry of Defence.