MoD supports the defense industry by allocating UAH 1 billion to partially compensate interest on concessional loans and leasing

In 2026, the Ministry of Defence of Ukraine will continue providing support to domestic defense industry enterprises, with UAH 1 billion available for partial compensation of interest on concessional loans and leasing.

“This decision enables defense manufacturers to scale up production, invest in modern equipment, and move more quickly from development to the serial production of weapons. Strengthening the defense industry is the foundation of a resilient defense economy and reliable supply of Ukrainian-made weapons to our service members,” said Ukraine’s Minister of Defence Denys Shmyhal.

According to Deputy Minister of Defence of Ukraine Anna Gvozdiar, the concessional lending program allows defense manufacturers to access up to UAH 100 million in working capital for up to three years and up to UAH 500 million for investment projects for up to five years. The interest rate for defense industry enterprises is set at 5% per year, with the state covering the remaining financing costs.

Furthermore, following a proposal by the Ministry of Defence of Ukraine, the Government has recently launched a concessional financial leasing program for defense industry enterprises. Within this framework, manufacturers may acquire vehicles, equipment, and other fixed assets under financial leasing arrangements at an effective annual rate of 5%. As with the lending program, the state covers the remaining financing costs. Support is delivered by reducing leasing payments through authorized leasing providers that meet defined criteria.

“The concessional lending and leasing programs will enhance the defense industry’s production capabilities and broaden the capacity to supply Ukrainian weapons to the military,” Anna Gvozdiar emphasized.