The number of Defence City residents reaches 31, with combined armaments sales revenue approaching UAH 90 billion

A total of 31 Ukrainian defense manufacturers have already obtained Defence City resident status under a special legal framework that provides state support to defense industry enterprises. Among them are manufacturers of UAVs, missiles, and other types of armaments.

Defence City: Bringing together Ukraine’s defense industry

Following the addition of new defense manufacturers to Defence City, the residents’ combined qualifying revenue (i.e., revenue from armaments sales) reached UAH 89.7 billion.

Defence City residents receive a range of practical benefits that help them scale up defense production.

Defence City benefits

The state provides special conditions for defense manufacturers within Defence City, including: 

• Exemption from corporate income tax — provided that the funds made available by the exemption are directed toward the development of production capacity and technologies.
• Simplified customs procedures — through a dedicated customs regime covering the import of components, equipment, and production-related operations.
• Exemption from land and environmental taxes — aimed at reducing the operational burden on manufacturing facilities.
• Foreign exchange liberalization measures — supporting access to international financing and dedicated foreign exchange mechanisms for residents.
• Protection of sensitive company information — restricting access to registry records and minimizing the disclosure of data that could affect production security.
• Service and advisory support through the Ministry of Defence of Ukraine — assisting residents with the practical implementation of the regime, engagement with government authorities, and use of support mechanisms provided by law.
• Support for the relocation and enhanced protection of production facilities — through dedicated mechanisms for relocating and siting manufacturing operations.
• Simplified defense exports — allowing manufacturers to export military goods without obtaining special export authorization.
• Additional personnel reservation opportunities — Defence City resident status qualifies an enterprise for designation as critically important to the defense industry, allowing up to 100% of employees liable for military service to be reserved in accordance with the established procedure.

The Ministry of Defence has previously explained how defense manufacturers can obtain Defence City resident status and the key benefits of such status.