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Defence City grows as more Ukrainian arms producers join the support regime

by Roman Cheplyk
Friday, May 29, 2026
2 MIN
Defence City grows as more Ukrainian arms producers join the support regime

The special legal regime now covers drone, missile and other defense manufacturers seeking practical state incentives

Thirty one Ukrainian arms producers have already received resident status under Defence City, a special legal regime designed to support the country’s defense industry. The residents include manufacturers of drones, missiles and other defense products.

The program matters because Ukraine’s defense sector is no longer only a recipient of emergency orders. It is becoming an industrial base that needs predictable rules, incentives and scaling mechanisms. Resident status gives companies access to practical support tools at a moment when production speed is directly connected to security.

From individual factories to an ecosystem

The combined revenue from defense product sales among the current residents has reached tens of billions of hryvnias. The exact figure is less important than the direction: more producers want to work inside a structured regime rather than through scattered wartime arrangements.

Defense Ministry adviser Hanna Hvozdiar said the growing number of residents shows demand for practical state support. For manufacturers, that may mean clearer procedures, easier access to incentives and a more predictable framework for investment in production lines.

The first Defence City resident was the drone maker Vampire. The expansion of the regime now suggests that Ukraine is trying to turn battlefield-driven innovation into a more stable defense industrial ecosystem. The challenge will be to keep the system fast, transparent and useful for companies that must deliver equipment under wartime pressure.

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