Ukraine is consistently building a favourable environment for the development of the defence-industrial complex and for attracting investment into manufacturing and technologies. One of the key instruments of state policy in this area is the special legal regime Defence City, aimed at supporting enterprises operating in the defence industry.
Residents of Defence City are granted a comprehensive set of incentives to expand production, including tax preferences, simplified customs procedures, access to preferential lending opportunities, and support during the relocation of production facilities. Ukrainian companies that meet the established criteria regarding ownership structure, the share of sector-specific revenue, and capital transparency may obtain resident status.
At the same time, defence enterprises may also benefit from nationwide investment support mechanisms. These include incentive programmes for participants in industrial parks, as well as state support instruments for investment projects with significant volumes of capital investment.
An important focus of state policy is the acceleration of the introduction of new defence technologies. To this end, Ukraine has introduced fast-track procedures for putting weapons and equipment into operation, grant funding programmes, initiatives aimed at production localisation, and measures to align products with international standards. Innovative startups and technology companies may receive support through the Brave1 platform, while the Build in Ukraine and Build with Ukraine programmes contribute to scaling up production and attracting international partners.
Additional support for the sector is provided by professional associations of defence manufacturers, as well as by digital platforms that facilitate interaction between businesses and public institutions.
To strengthen investment security, Ukraine has also introduced mechanisms for insuring war and political risks with the participation of international financial institutions and export credit agencies, including the Export Credit Agency of Ukraine.
Taken together, these instruments are shaping a modern support ecosystem for the defence industry, opening up new opportunities for companies seeking to develop and scale defence technologies in Ukraine.
For a more detailed overview of the full range of incentives and available instruments, please refer to the section “Doing Business. Investing in the Defence Industry.” If you are interested in implementing defence-industrial investment projects in Dnipropetrovsk region, you may also rely on the support of the regional investment agency DIA. In accordance with the technical requirements of a project, the agency helps identify the most suitable investment site, provides advisory support at all stages of project preparation, and facilitates interaction with public authorities and other participants in the investment process.
