Ukraine plans to launch a dedicated “Defence City” industrial ecosystem to scale critical domestic arms manufacturing and meet the requirement that at least half of defense procurement funds stay within the country. The initiative will support key defense enterprises with infrastructure, financing tools, and streamlined procurement procedures under the Build with Ukraine and Build in Ukraine strategies — modeled on Denmark’s collaborative approach.
Defense Minister Denys Shmyhal said the project aligns with broader innovation-focused reforms and will be bolstered by new international funding mechanisms such as PURL and SAFE, the latter already backed by 18 partner countries with €150 billion allocated for joint defense projects.
The move underscores Kyiv’s push to localize weapons production, modernize procurement systems, and build a resilient defense-industrial complex capable of sustaining long-term security needs and export-oriented capacity.
