Defence City: what benefits will Ukrainian weapons manufacturers receive.

Favorable conditions for Ukrainian weapons manufacturers

According to inkorr.com: Defense Minister Denys Shmyhal announced that new advantageous conditions are being introduced for local weapons manufacturers in Ukraine. The President signed legislation that provides for the launch of a special legal regime called Defence City.

• exemption from profit tax (provided reinvestment);
• exemption from land and property tax (if used in production);
• exemption from environmental tax;
• simplification of customs procedures;
• simplified regime for international transfer of defense products;
• state support in relocation and protection of production capacities.

Defense industry manufacturers, who are strategically important for the country's defense capability and meet transparency criteria, will have the opportunity to join Defence City. The Defense Minister emphasized: 'We are creating even more favorable conditions for Ukrainian arms manufacturers. We are acting quickly and encouraging our producers to do the same. Our weapons are our smart power.'

State bodies are working to support national weapons manufacturers by offering them tax benefits and simplifying customs processes. This is intended to be a boost for the development of the defense sector in Ukraine, enhance its defense capability, and make Ukrainian weapons more competitive in the global market.

The initiatives laid out under Defence City may not only contribute to the growth of production but also attract investments in this sector. Transparency and support from the state must become important factors for the development of the Ukrainian defense industry in the face of current challenges.