“Criteria for enterprises to join Defence City will be eased – HetmantsevThe Head of the VR Committee on Finance, Danylo Hetmantsev, announced the easing of criteria for defense industry enterprises to
participate in the Defence City initiative.
”, — write: unn.ua
On his Telegram page, Danylo Hetmantsev announced that he held a meeting with representatives of the National Association of the Defense Industry of Ukraine (NAUDI), the Federation of Employers of Ukraine (FRU), DIC manufacturers, and the Ministry of Defense team as part of the preparation of relevant draft laws from the Defence City package for the second reading.
The most questions concern the criteria for inclusion in Defence City residency. I am confident that we must preserve the content, but we can somewhat soften the requirements — in particular, regarding the share of weapons production. It is also important to ensure the possibility of entry for manufacturers of dual-use goods that work mainly for military needs — drones, EW equipment, etc.
He also called on all interested parties – enterprises, associations, and experts – to actively engage in the process: send proposals, comment, and participate in the refinement of legislative changes.
We are all interested in creating conditions that will allow our defense industry — which today is the locomotive of the economy — to continue to grow, pulling related sectors along with it. The package of legislative solutions should give a clear impetus for the long-term development of the industry
AddOn July 16, the Verkhovna Rada of Ukraine adopted in the first reading three key draft laws aimed at introducing a special legal regime for Defence City – to support the domestic defense-industrial complex. The documents provide for tax, customs, and budget benefits for participants of the special regime – until 2036.
On the eve of the vote, experts emphasized that these are only the first steps in creating a systemic mechanism for supporting strategic industries, which Ukraine has long needed. In particular, among those involved in the defense industry and performing state defense orders are aircraft manufacturing enterprises.
Representatives of this industry have repeatedly publicly warned about the risk of excluding their aircraft manufacturing from the circle of potential residents of Defence City – despite its critical role in supporting, repairing, and modernizing the aircraft fleet operated by the Ukrainian military. Industry experts point out that the current version of the draft laws effectively limits the possibility of participation for most aircraft manufacturing and aircraft repair enterprises, as it requires that the share of defense products be at least 90% of the revenue structure. However, even industry flagships – such as SE “Antonov”, “Motor Sich”, and other private contractors of state contracts – do not meet these criteria and may remain outside the Defence City initiative.
The Aerospace Association of Ukraine insists on the direct inclusion of the aircraft manufacturing industry in the draft laws from the Defence City package. The President of the Association, in a comment to UNN, explained that from January 1, 2025, aircraft manufacturing enterprises lost state support, and the new initiative is a chance for them to receive the benefits and preferences necessary for the normal functioning and development of the industry.