One of the key tools for ensuring the continuity of operations for Defence City residents is relocation — a set of measures that involve changing location and transferring production facilities or individual units of a company to another part of Ukraine.
Relocation of Defence City residents
Relocation refers to a set of measures involving the change of location and transfer of the actual place of business or production facilities of a Defence City resident — or its separate divisions — to another part of Ukraine, in accordance with applicable procedures.
Conditions
1. Relocation within the Defence City legal framework may be carried out during martial law and for three years after its conclusion.
2. Relocation measures may apply to:
- a legal entity as a whole — provided that the resident engaged in defence production and employed at least 30 staff in the previous reporting year
- a separate division of a resident — provided that the division carried out defence production activities, acted as a tax agent for personal income tax, and employed at least 20 staff in the previous reporting year.
NB: On a reasoned request from a resident, the Ministry of Defence may approve the relocation of a separate division without requiring compliance with the conditions relating to the duration of defence production activity or the minimum number of employees.
Procedure
Step 1. Application
A Defence City resident intending to relocate and seeking state support must submit an application to the Ministry of Defence. The application must include:
(1) the details of the legal entity:
- full and abbreviated names (if applicable)
- entity code (EDRPOU)
- place of business (city, region)
- contact details
- number of employees at the submission date
(2) when a Defence City resident seeks to relocate a separate division, the application must additionally include the details of that division:
- full and abbreviated names (if applicable)
- entity code (EDRPOU)
- place of business (city, region)
- contact details
- number of employees at the submission date
- information confirming that the division has acted as a tax agent for personal income tax
(3) timeframe for relocation
(4) priority areas for potential transfer
(5) information on what the resident needs:
- production premises or land plots, with key characteristics indicated
- connection of production facilities to utility networks, with main technical parameters specified
- access to infrastructure essential for production activities
- transfer of equipment, with its principal specifications listed
- relocation of employees and provision of housing for staff among internally displaced persons.
The application must be submitted in approved form either:
(1) in soft copy — signed with the digital signature of a director, an authorised representative named in the Unified State Register, or an attorney-in-fact, of the applicant and sent to admou@post.mil.gov.ua,
or
(2) in hard copy — signed by a director, an authorised representative named in the Unified State Register, or an attorney-in-fact, of the applicant and sent to Povitrianykh Syl Avenue, 03168 Kyiv, Ukraine.
The Ministry of Defence, within three business days of the receipt date, will either:
(1) accept the application for consideration and forward it to the regional military administrations to prepare relocation proposals in line with the resident’s stated needs,
or
(2) return the application without consideration if the resident fails to meet the applicable relocation conditions or the application form requirements. In such event, the applicant will receive written notice explaining the reasons for the return.
Step 2. Approval
Within ten business days, the Defence City resident will receive relocation proposals in writing from:
(1) the regional military administrations selected as potential relocation sites
(2) the Ministry of Defence, with input from other central executive authorities where relevant.
The resident will have 20 business days to review these proposals. During this period, the Ministry of Defence or the regional military administrations (together with interested parties involved) may, at the resident’s request, arrange for site inspections, additional information on the feasibility of the relocation measures, etc.
Following the review, the Defence City resident will select a relocation territory and notify the Ministry of Defence, specifying the territorial code, relocation timeframe, and a list of measures to be undertaken.
The Ministry of Defence then will have five business days to decide whether to approve the relocation measures and will send a copy of that decision to the resident within three business days.
NB: If relocation is required across several regions, or if difficulties arise in organising or carrying out the relocation measures, the Ministry of Defence may set up an advisory body (a project group) to ensure coordinated planning and implementation. The resident may also initiate the establishment of such a body during the proposal review stage, provided that the resident submits appropriate reasons.
Step 3. Implementation
Relocation measures will be carried out in accordance with the Ministry of Defence decision, which specifies the territorial code of the chosen relocation site, the timeframe for implementation, and the list of measures, as proposed by with the resident.
The Ministry’s decision may be altered or cancelled if circumstances arise or are identified that make relocation in the approved manner impossible. In such event, the Defence City resident will notify the Ministry of Defence in writing and provide appropriate reasons.
The relocation measures will be implemented by the Defence City resident. Throughout the implementation period, the regional military administrations with jurisdiction over the destination region, together with local government bodies, will provide coordination and support within their respective powers. This will include:
(1) coordinating interaction between the resident and authorised bodies to facilitate the necessary permits and approvals for establishing production facilities at the new location
(2) providing organisational support (information and advisory assistance) and coordinating interaction with owners (asset holders) or operators of utility networks and infrastructure to ensure connection of the production facilities and access to essential infrastructure
(3) carrying out other measures within their respective powers.
The Ministry of Defence will oversee the process, coordinate the interested parties, and take action to respond to violations, if any.
Enhancing the protection of production facilities
Measures to enhance the protection of a Defence City resident’s production facilities encompass a set of organisational, engineering, and technical actions designed to ensure, in a defined manner, the resilience of manufacturing, auxiliary, and storage premises, safeguard employees, and maintain the continuity of production processes.
Implementation may take the form of:
(1) new construction — building manufacturing, auxiliary, or storage premises in line with (a) state building regulations applicable to protective structures and (b) civil protection legislation,
or
(2) renovation or major repairs — bringing facilities into compliance with (a) state building regulations applicable to protective structures and (b) civil protection legislation, such as:
- existing manufacturing, auxiliary, or storage premises owned by the Defence City resident
- state or municipally owned property used by the resident, subject to approval from the managing authority or the asset holder.
Conditions
1. Measures to enhance the protection of a Defence City resident’s production facilities may be carried out during martial law and for three years after its conclusion.
2. Such measures will be implemented at that resident’s current place of business, provided the enterprise employs at least 30 staff.
NB: A Defence City resident undertaking relocation cannot simultaneously implement enhanced protection measures — except where such relocation applies to separate divisions that do not use the manufacturing, auxiliary, or storage premises subject to those measures.
Procedure
Step 1. Application
A Defence City resident intending to enhance the protection of its production facilities and seeking state support must submit an application to the Ministry of Defence. The application must include:
(1) the details of the legal entity:
- full and abbreviated names (if applicable)
- entity code (EDRPOU)
- place of business (city, region)
- contact details
(2) number of employees at the submission date
(3) timeframe for enhanced protection measures
(4) information on planned work:
- new construction of manufacturing, auxiliary, or storage premises that meet the regulations applicable to protective structures,
or
- renovation or major repairs of existing premises to bring them into compliance with (a) state building regulations applicable to protective structures and (b) civil protection legislation
(5) estimated construction project cost
(6) additional information, if available.
The application must be accompanied by:
(1) a duly certified copy of the design estimate documentation prepared and approved in accordance with the law, covering either:
- new construction of manufacturing, auxiliary, or storage premises that meet the regulations applicable to protective structures,
or
- renovation or major repairs of existing premises to bring them into compliance with (a) state building regulations applicable to protective structures and (b) civil protection legislation
(2) where the measures concern state or municipally owned property, a copy of the approval from the landlord and the managing authority responsible for the property.
The application must be submitted in approved form either:
(1) in soft copy — signed with the digital signature of a director, an authorised representative named in the Unified State Register, or an attorney-in-fact, of the applicant and sent to admou@post.mil.gov.ua,
or
(2) in hard copy — signed by a director, an authorised representative named in the Unified State Register, or an attorney-in-fact, of the applicant and sent to 6 Povitrianykh Syl Avenue, 03168 Kyiv, Ukraine.
The Ministry of Defence, within three business days of the receipt date, will either:
(1) accept the application for consideration,
or
(2) return the application if the resident fails to meet the applicable conditions for enhanced protection measures or the application form requirements. In such event, the applicant will receive written notice explaining the reasons for the return.
Step 2. Approval
The Ministry of Defence will consider the application within ten working days. Following the consideration, the Ministry will have five business days to decide whether to approve the enhanced protection measures for the Defence City resident’s production facilities.
A copy of that decision will be sent to the resident within three business days.
Step 3. Implementation
Enhanced protection measures will be carried out in accordance with the Ministry of Defence decision, which specifies the populated area where the measures are to be implemented and the timeframe for implementation.
The Ministry’s decision may be altered or cancelled if circumstances arise or are identified that make enhanced protection in the approved manner impossible. In such event, the Defence City resident will notify the Ministry of Defence in writing and provide appropriate reasons.
The enhanced protection measures will be implemented by the Defence City resident. Throughout the implementation period, the regional military administrations with jurisdiction over the implementation area, together with local government bodies, will provide coordination and support within their respective powers. This will include:
(1) coordinating interaction between the resident and authorised bodies to facilitate the necessary permits and approvals for:
- new construction of manufacturing, auxiliary, or storage premises that meet the regulations applicable to protective structures,
or
- renovation or major repairs of existing premises to bring them into compliance with (a) state building regulations applicable to protective structures and (b) civil protection legislation
(2) providing organisational support (information and advisory assistance) and coordinating interaction with owners (asset holders) or operators of utility networks and infrastructure to ensure connection of the newly constructed, renovated or repaired facilities and access to essential infrastructure
(3) carrying out necessary work on the state or municipally owned property used by the resident, with the aim of bringing such facilities into compliance with (a) state building regulations applicable to protective structures and (b) civil protection legislation
(4) carrying out other measures within their respective powers as set out in law.
The Ministry of Defence will oversee the process, coordinate the interested parties, and take action to respond to violations, if any.
Financing relocation and enhanced protection
Local government bodies will provide funding for activities related to the relocation of Defence City residents from local budgets and within the limits of approved appropriations. These funds may be used for the purposes of:
(1) development of necessary production infrastructure at state or municipally owned facilities (through the asset holder)
(2) connection and provision of utilities — electricity, water, gas supply, wastewater disposal, waste management, and utility networks
(3) compensation for costs of transporting property and employees (via Ukrainian Railways/Ukrposhta)
(4) compensation for rental cost in respect of state or municipally owned property (for up to five years)
(5) renovation or major repairs of state or municipally owned facilities to bring them into compliance with (a) regulations applicable to protective structures and (b) civil protection legislation
(6) development of housing and social infrastructure for employees (housing, public utilities, education, culture, healthcare).
Relocation measures will be financed in consultation with the Defence City resident and solely within the defined purposes.
Control and reporting
Relocation and enhanced protection measures in respect of a Defence City resident’s production facilities will be controlled by the Ministry of Defence, regional military administrations, and local government bodies within their respective powers.
Regional military administrations will submit quarterly reports on the progress of the measures being implemented in the relevant territories. This information will be consolidated by the Ministry of Defence.
The Ministry of Defence will continuously monitor the progress of these measures.