Over UAH 10 billion in concessional loans for the defence industry: Ministry of Defence expands support for Ukrainian manufacturers
The Ministry of Defence of Ukraine continues to develop financial instruments to help scale up domestic defence production.
Ukrainian defence industry companies have already received 167 concessional loans worth more than UAH 10 billion (~$222.6 million) under the government support programme administered by the Ministry of Defence.
Of the total number of loans issued, 12 have already been repaid in full.
Financing the development of weapons production
The concessional lending programme provides Ukrainian defence manufacturers with access to additional financing to develop and scale up their production.
Defence industry companies may obtain:
- up to UAH 500 million (~$11.1 million) for a term of up to five years to implement investment projects;
- up to UAH 100 million (~$2.23 million) for a term of up to three years to replenish working capital.
The funds may be used for the development, manufacture, repair, modernisation and disposal of weapons, military and specialised equipment, ammunition and their components.
Such measures enable Ukrainian manufacturers to grow, invest in their own capabilities and plan their future development with confidence. A strong, technologically advanced and resilient defence industry is one of the foundations of Ukraine’s long-term security.
Through this programme, the state is consistently establishing concessional lending as one of the core mechanisms supporting the development of Ukraine’s defence industry.
Systematic support for Ukrainian defence manufacturers
Under the programme, the interest rate for defence industry companies is set at 5% per annum. The state compensates the remaining financing costs.
Concessional lending forms part of the Ministry of Defence’s comprehensive policy to support Ukrainian defence manufacturers. The policy also includes concessional financial leasing, the special Defence City legal regime and other support mechanisms.
The Ministry of Defence continues to develop financial instruments that help companies scale up production, increase the supply of Ukrainian-made weapons and strengthen the country’s defence resilience.
The Ministry of Defence previously provided detailed guidance on how defence industry companies can obtain a concessional loan to develop their production.