International Companies Choose Ukraine
According to the Ministry of Defense of Ukraine, 25 foreign manufacturers are already localizing their production in the country, including several leading global defense industry giants.
This trend reflects deepening cooperation between the Ukrainian government and international partners, with the priority to ensure that most localized production serves the Ukrainian Armed Forces.
New Models of Cooperation
Defense Minister Denys Shmyhal highlighted that Ukraine offers partners flexible cooperation formats, including:
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the “Danish model”;
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Build with Ukraine / Build in Ukraine initiatives.
These models are designed to accelerate localization and make Ukraine an integral part of global supply chains.
Defence City: Special Economic Regime
To reduce risks and increase investment appeal, Ukraine is launching Defence City, a special economic zone for the defense industry. It includes:
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Tax incentives for investors;
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Simplified customs procedures;
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Relocation opportunities to safer regions;
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Expanded state financial support;
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Export opportunities and integration into NATO/EU defense chains.
A Hub for Military Innovation
Shmyhal emphasized that Ukraine is now a global testbed for advanced weapons, where innovative systems are being created and refined under battlefield conditions.
“We invite foreign companies to invest in Ukraine and open production facilities. Here, technologies are being developed that change the rules of the game on the battlefield,” Shmyhal said.
Example: Rheinmetall Plant in Ukraine
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Ukraine has already allocated land in a safe region for the construction of a Rheinmetall plant.
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The facility will produce 155-mm artillery shells, strengthening both Ukraine’s defense capabilities and NATO supply security.
Strategic Outlook
The localization of 25 foreign defense companies signals that:
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Ukraine is moving from import dependence to joint production;
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international players view Ukraine as both a market and a partner in innovation;
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Defense City could become a magnet for capital inflows, securing Ukraine’s long-term role in the global defense industry.
