Key Decision by the President
President of Ukraine Volodymyr Zelensky has signed into law a bill that establishes special conditions for defense-industrial enterprises, aimed at accelerating production and strengthening Ukraine’s defense capabilities. The information appeared on the official website of the Verkhovna Rada.
Simplified Customs for Defense Needs
The law introduces simplified customs procedures for:
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defense-industrial complex enterprises;
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the Armed Forces of Ukraine;
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other law enforcement agencies.
This includes faster import, temporary import, and processing of defense-related goods.
➝ The goal is to ensure rapid delivery of weapons, equipment, and components, while reducing bureaucratic delays.
Special Regime for Defense City
A key element of the legislation is the creation of special rules for residents of Defense City, Ukraine’s upcoming industrial park for defense production.
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Defense City is envisioned as a tax and customs benefits space for domestic and foreign manufacturers localizing production in Ukraine.
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The initiative is part of Ukraine’s broader strategy to attract global defense companies, support joint ventures, and ensure direct supply of advanced weapons to the Armed Forces.
Parliamentary Support
The Verkhovna Rada had earlier voted in favor of draft laws to support the defense-industrial complex, paving the way for the creation of the Defense City tax space. Lawmakers emphasized that such measures are necessary to build sustainable production and reduce dependence on external suppliers.
Why It Matters
Ukraine is rapidly expanding its defense-industrial base amid the ongoing war. By creating a favorable legal framework, the government aims to:
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stimulate investment in local defense production;
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reduce procurement timelines;
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strengthen cooperation with international partners.
