“Defence City is on the home stretch to voting: who will become a resident of the new model of support for the defense-industrial complex?The Defence City initiative is preparing for a vote, but experts warn of the risk of excluding the aviation industry due to the
criteria. This could affect support for military equipment and the preservation of defense infrastructure.
”, — write: unn.ua
DetailsDefence City is being created as a special regime to support and develop the Ukrainian defense-industrial complex. Active discussion of the initiative is currently underway before the relevant draft laws are considered in the first reading, which is expected in the near future. The initiative has already been discussed with representatives of G7 countries and NATO.
As noted by Ihor Zhdanov, head of the “Information Defense” project of the “Open Politics” Foundation, enterprises working for defense needs will be able to use the benefits within Defence City.
These are companies that will meet the established requirements, which produce weapons, drones, equipment, air defense, ammunition or modernize military equipment
At the same time, discussions are ongoing about which companies will be included in the list of Defence City residents and by what criteria they will be selected. And it is here, as experts emphasize, that there is a risk that a number of critically important enterprises may remain outside the initiative.
A striking example is the aviation industry, which has been operating at the limit of its resources and technical endurance for a long time. And this is not only a consequence of the full-scale war. Even in relatively stable periods, the aviation industry needed special conditions, as it is a labor-intensive and resource-intensive area. Such support practice is in effect in most developed countries of the world.
In 2016, tax and customs benefits were introduced for the Ukrainian aviation industry. They allowed enterprises to maintain production, retain engineering personnel, and invest in research and development. However, these preferences expired at the beginning of 2025, leaving the industry without support tools.
Aviation enterprises may currently not be included in the list of potential residents of Defence City. At the same time, it is their work that determines, in particular, whether Mi-8 combat helicopters will be able to perform tasks at the front, whether the military will be provided with technically sound machines, and whether Ukraine will be able to maintain its capabilities in the field of aviation support. If this issue remains without proper attention, the country risks losing a critically important link in its defense infrastructure.
In turn, military-political observer of the “Information Resistance” group Oleksandr Kovalenko noted that the Defence City initiative is at an early stage and is currently only the first step that Ukraine has been waiting for many years.
We have been waiting for these draft laws for a very long time. They would have been appropriate back in 2022, and to be honest – even earlier
Kovalenko emphasized that the very fact of the appearance of a legislative framework is positive, as it contains important provisions. At the same time, he drew attention to a number of issues that require further refinement and settlement.
When a draft law finally appears, it certainly says the right things. But at the same time, questions arise: how to establish interaction and make the mechanisms effective. One of the next steps may well concern the aviation industry. For example, Antonov State Enterprise continues production, there is cooperation with the defense sector. However, challenges remain – it is difficult to produce and even maintain equipment at the enterprise level. And there will be many more such questions
RecallIn its current version, the draft laws on Defence City may leave the entire aircraft manufacturing industry outside state support. As noted by the Aerospace Association of Ukraine, the current criteria effectively exclude enterprises such as Antonov and Motor Sich, as they are not narrowly defense manufacturers. Instead, these companies cover a wide range of areas – from research and development and engineering to the manufacture of parts and maintenance of civilian equipment. The Association proposes to expand the approach to forming the list of Defence City residents. In particular, it is about the possibility of taking into account the current government register of aircraft manufacturing entities that have already undergone thorough verification and have confirmed professional and production potential.