Ukraine’s Defense Minister Denys Shmyhal has held talks with KNDS Deutschland, one of Europe’s leading defense manufacturers, on expanding industrial cooperation and launching joint ventures in Ukraine.
The discussions centered on:
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Establishing new production facilities for military equipment and spare parts;
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Developing a network of repair and service hubs for rapid restoration of heavy weapons, with the first Gepard air defense systems already repaired in Ukraine;
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Leveraging frontline experience of Ukrainian soldiers to improve KNDS products for modern combat needs.
Shmyhal also briefed the delegation on preparations for Defence City, Ukraine’s new preferential regime for defense manufacturers, which will introduce tax incentives, simplified export procedures, and clear legal rules for foreign investors.
Investment Signal:
The cooperation with KNDS marks a significant step toward localizing European defense production in Ukraine, integrating battlefield expertise into product innovation, and building long-term capacity for equipment servicing and manufacturing. For international investors, it underscores Ukraine’s emerging role as a regional hub for defense-industrial projects backed by transparent legal frameworks and sustained wartime demand.
