The Government of Ukraine has increased the maximum amount of a preferential loan for defense industry companies fivefold, from UAH 100 million to UAH 500 million. The changes are intended to expand weapons manufacturers’ access to working capital and create additional opportunities to scale up production.

Companies performing state defense contracts will be able to raise up to UAH 500 million in working capital at an interest rate of 5–10% per annum. The specific interest rate will depend on the loan amount.

In addition, the program provides for investment loans to expand production capacity. Companies will be able to obtain such loans at a rate of 5% per annum, which is expected to ensure financing for long-term projects to develop defense production.

The expansion of the program will be financed through the National Development Institution within the funds already provided for in the state budget. No additional budget funding is required to increase the loan limit.

The change in the program’s terms is aimed at expanding defense companies’ access to financing, scaling up production and increasing the output of Ukrainian weapons for the front.

The defense industry’s need for additional financing is linked, in particular, to companies’ limited ability to finance their production plans on their own. Earlier, Oleksandr Kamyshin, Adviser to the President on Strategic Affairs and former Minister for Strategic Industries, stated that in 2026 Ukraine is capable of producing weapons worth around $50 billion, but that the industry has been facing financial constraints since 2024.

At the same time, the State is expanding other instruments for financing the defense industry. In particular, Ukrainian defense industry companies have already begun using the preferential financial leasing program. Under this program, the first 26 agreements totaling UAH 91.2 million have been concluded.

Source: https://inventure.com.ua