“This decision enables defence manufacturers to scale up production, invest in modern equipment, and move more quickly from development to the serial production of weapons. Strengthening the defence industry is the foundation of a resilient defence economy and reliable supply of Ukrainian-made weapons to our service members,” said Ukraine’s Minister of Defence Denys Shmyhal.
According to Deputy Minister of Defence of Ukraine Anna Gvozdiar, the preferential lending programme allows defence manufacturers to access up to UAH 100 million in working capital for up to three years and up to UAH 500 million for investment projects for up to five years. The interest rate for defence industry enterprises is set at 5% per year, with the state covering the remaining financing costs.
Furthermore, following a proposal by the Ministry of Defence of Ukraine, the Government has recently launched preferential financial leases for defence enterprises. Manufacturers may acquire vehicles, equipment, and other fixed assets at an effective annual rate of 5%. As with the lending programme, the state covers the remaining financing costs. Support is delivered by reducing lease payments through authorized lease providers that meet applicable criteria.
“The preferential lending and leasing programmes will enhance the defence industry’s production capabilities and broaden the capacity to supply Ukrainian weapons to the military,” Anna Gvozdiar emphasized.
The Ministry of Defence of Ukraine will continue developing financial instruments to strengthen the production capacity of Ukraine’s defence industry and shape a resilient defence economy under wartime conditions.