Government approves new benefits for defense procurement contractors

Following the submission of the Ministry of Defence of Ukraine, the Government has introduced additional opportunities for defense procurement contractors.

Currently, components intended for defense purposes are imported into Ukraine exempt from customs duties and value-added tax (VAT), provided they are used for their designated purpose. 

Now, if imported goods are destroyed by the enemy, the supplier is entitled to import an equivalent quantity of components for defense purposes under preferential conditions.

Defense procurement contractors shall submit to the customer a complete set of documents substantiating the occurrence of force majeure circumstances. The benefits shall apply in cases where the loss of components takes place prior to the expiry of the state contract.

“In this way, we are establishing the most favorable conditions to guarantee the continuous production of weapons in Ukraine and to ensure that weapons manufacturers face no shortages of any necessary resources,” stressed Denys Shmyhal, Minister of Defence of Ukraine.