The funds are directed toward the full production cycle, from development and manufacturing to the repair and modernisation of equipment, ammunition, and their components.
According to Anna Gvozdiar, Adviser to the Minister of Defence of Ukraine, preferential loans have become an instrument for the rapid expansion of defence production. “We are creating conditions that enable Ukrainian manufacturers to plan their development and invest in modernisation without critical financial strain,” she emphasised.
The bank base rate is capped at 23% on a yearly basis. The state covers the difference between the market and preferential rates, so enterprises effectively pay just 5% annually.
In addition, enterprises may access state guarantees in accordance with government decisions.
The programme is open to defence enterprises designated as critical to the economy during the special period.
Financing is provided under the programme introduced in 2024 to scale up the production of weapons and military equipment and to modernise production capacities.