MoD approves criteria for designating defense industry enterprises as critical to the national economy

The Ministry of Defence of Ukraine has approved criteria for designating enterprises, institutions, and organizations operating in the defense industry, aircraft manufacturing sector, and space industry as critical to the national economy.

Accordingly, the Ministry of Defence has begun officially accepting applications from enterprises seeking this status. Submissions should be sent to [email protected] 

Previously, these functions were exercised by the Ministry of Strategic Industries of Ukraine.

The criteria approved by the Ministry of Defence retain the existing approach to the designation of such enterprises. Business entities that have already been granted the status of enterprises critical to the national economy and whose status remains in effect are not required to undertake any additional steps or make amendments to their documentation.

The criteria that enterprises within the defense industry must satisfy to obtain the status of being critical to the national economy, and consequently the right to reserve up to 100% of their employees subject to military service, are as follows:

1. Fulfilment of a state contract (agreement) in the defense sector, or participation in its execution under contracts (including international trade agreements), provided that defense-related production constitutes over 50% of the enterprise’s total output for the latest reporting period.
    
2. Receipt of state financial support in the form of grants in accordance with Cabinet of Ministers Resolution No. 262 of 8 March 2024, titled “Certain Issues of Ensuring the Development of Innovations and Technologies for Defense Needs.”
    
3. Execution of the functions of an authorized body responsible for managing state-owned assets, tasked with regulating, overseeing, and coordinating the activities of defense industry enterprises.

Enterprises, institutions, and organizations within the defense industry that do not meet the above criteria may be granted the status of being critical to the national economy if they fulfill at least three of the following requirements:

1. Execution of a state contract in the defense sector.
    
2. Engagement in fulfilling defense orders under agreements, including foreign trade contracts.
    
3. Inclusion in the electronic register of participants in the selection process and the contractors executing state defense contracts.
    
4. Involvement in the implementation of state target programs in the aircraft manufacturing or space sectors.
    
5. Participation in defense industry development programs, the implementation of new technologies, or the expansion of production capacities.
    
6. Production of goods, performance of work, or provision of services used by defense industry enterprises in the manufacturing of defense products.