Ukrainian defence companies secure over UAH 12.5 billion in concessional loans

Ukrainian defence enterprises have signed 211 concessional lending agreements totalling UAH 12.51 billion, the Ministry of Defence of Ukraine reported.

The programme has operated since November 2024 and is intended to help manufacturers finance capacity expansion and ongoing needs to fulfil defence orders.

Lending terms

Under the programme, a defence-industrial enterprise can borrow up to UAH 500 million:

• for investment projects — for a term of up to five years;
• for working capital — for a term of up to three years.

According to the Ministry of Defence, the enterprise pays 5% annual interest, while the state covers the remainder of the financing cost.

The loan funds may be used to develop, manufacture, repair, modernise, and dispose of weapons, military and special equipment, ammunition, and their components. The programme also allows companies to purchase equipment and components and finance ongoing production needs.

“Concessional loans enable manufacturers to invest in their own capabilities and purchase the necessary equipment and components,” Deputy Minister of Defence of Ukraine Hanna Hvozdiar said.

According to her, the financing should help enterprises increase production faster and expand weapons supplies to the Defence Forces.

Who is eligible for a loan

The programme is available to enterprises the Ministry of Defence has designated as critical to the economy’s functioning during a special period in the defence-industrial complex.

The Ministry of Defence has compiled detailed borrower requirements and application procedures in a separate guide for manufacturers.