Ministry of Strategic Industries creates special business regime for defence enterprises

The Ministry of Strategic Industries of Ukraine is working to implement a special business regime for enterprises within the defence-industrial complex, Deputy Minister Hanna Hvozdiar has announced. The initiative focuses primarily on new financing opportunities, conditions for testing products, and the reservation of employees.

To provide financial support for weapons manufacturers, the Ministry is offering preferential loans, grants, and is preparing a leasing programme.

Weapons manufacturers can access preferential loans of up to UAH 500 million at 5% per annum. The funding can be used to scale up production, purchase equipment and components, develop new products, and launch mass production. Applications are accepted by banks that operate regime-secret facilities — currently Oschadbank, Ukreximbank, and FUIB. The list of eligible banks is expected to grow.

The Made for Victory grant programme is available to component manufacturers. Grants of up to UAH 8 million can be used to purchase, deliver, install, and commission equipment, including the implementation of new software. The grant is repaid through the creation of new jobs and the payment of taxes. Applications can be submitted via the Diia portal.

The Ministry is also preparing to launch a leasing programme for defence industry enterprises, which will cover production facilities, machinery, and equipment.

Additional services available to weapons manufacturers include:

• Iron Polygon – a platform enabling manufacturers to test products in collaboration with Defence Forces representatives, receive direct feedback, and refine products to meet real operational needs.
• Employee reservation – enterprises recognised as critically important to the defence industry may reserve 100% of their workforce, ensuring uninterrupted operations during periods of heightened national security.
• Component Library – a secure digital platform for verified weapons manufacturers. Ukrainian companies can find reliable partners, foster collaboration, and expand local production, thereby reducing dependence on imports.

Meanwhile, draft legislation is currently under consideration in Parliament to ease the tax burden for manufacturers of fibre optic drones.