The Ukrainian government has streamlined the process for leasing state property to defense industry enterprises without the need for auctions. This measure is set to remain in effect during the ongoing state of war.
According to Minister of Economy Yulia Svyrydenko, the new framework is designed specifically for manufacturers supplying critically important weapons to the Armed Forces. The simplified leasing conditions will be available to developers of missile systems, explosives, and new weaponry.
However, not all companies will be eligible for these benefits. The no-auction leasing option will be restricted to enterprises deemed critically important to the economy and included in the Ministry of Defense’s registry of state contract executors.
The government aims to significantly accelerate production processes within the defense sector. Svyrydenko emphasized that Ukrainian manufacturers are capable of substantially increasing output, thereby enhancing the military’s advantages on the battlefield. She stated, “The government is doing everything possible to ensure that Ukraine remains strong and well-armed.”
This decision is expected to facilitate the domestic defense industry in rapidly launching new production facilities and scaling up weapon production to meet frontline needs.
In related developments, the Cabinet has allocated nearly 11 billion hryvnias for the procurement and production of weapons. An additional 10.8 billion hryvnias has been raised in a special state budget fund through taxes and licensing fees from the gambling industry.
Of this amount, 9 billion hryvnias will be directed towards the purchase, repair, and modernization of military equipment, while nearly 2 billion hryvnias will support the scaling of domestic production and the swift implementation of new technologies in the defense sector.
Furthermore, Ukraine’s defense sector is actively expanding its international collaborations. Joint drone production projects are being initiated in cooperation with Norway, the Netherlands, Romania, Germany, and other countries. In this model, Ukraine shares combat experience and technology, while European partners provide funding and production capabilities.
Additionally, the pace of domestic missile production is increasing. Reports indicate that the private defense sector is currently producing three “Flamingo” missiles per day, with output expected to rise sharply following the complete transition of enterprises to domestically developed engines.
The Ukrainian government has simplified the leasing process for state property to defense manufacturers, aiming to boost production capabilities amid ongoing conflict. This initiative is part of broader efforts to enhance military readiness and expand international cooperation in the defense sector.