Denys Shmyhal: The Ministry of Defence is preparing a comprehensive urgent action plan to develop domestic defense industry enterprises

In recent years, Ukraine’s defense industry capabilities have seen unprecedented growth, expanding from $1 billion to $35 billion.

“These results have been achieved through a consistent state policy, the optimization of the regulatory framework, the attraction of investment, and the scaling of domestic production,” stated Denys Shmyhal, Minister of Defence of Ukraine.

Over the year, defense industry enterprises received UAH 5.6 billion in loans on preferential terms.

Alongside the continuation of credit programs, a preferential leasing program is being introduced, allowing defense manufacturers to access transport and equipment at a concessional annual rate of 5%.

In early January 2026, the dedicated legal framework Defence City was launched as a state support instrument for defense industry enterprises. Residents of the Defence City framework will be eligible for tax incentives, streamlined customs procedures, and other support measures.

Furthermore, at the initiative of the Ministry of Defence, the financing mechanism for state-owned defense enterprises damaged by enemy attacks was revised last year, and manufacturers have already received over UAH 1.5 billion in budgetary support to restore their operations.

“The Ministry of Defence is developing a comprehensive urgent action plan to develop domestic defense industry enterprises, which will form part of a new strategy for the development of the defense industry,” concluded Denys Shmyhal.