Benefits under the new legal regime of Defence City will be provided only to bona fide manufacturers: companies without tax debts, enforcement proceedings, and having at least 90% of their income from defense orders.
Benefits under the new legal regime of Defence City will be provided only to bona fide manufacturers: companies without tax debts, enforcement proceedings, and having at least 90% of their income from defense orders.
This was stated by David Arakhamia, head of the Servant of the People faction, one of the authors of the bill, in an interview with Babel.
These are enterprises that receive at least 90% of their income from defense contracts, have no tax debts, enforcement proceedings, and do not violate their obligations to customers. According to preliminary plans, the list of such companies will be determined by a collegial body under the Ministry of Defense. It is the Ministry of Defense that will form priorities, for example, drones and high-precision weapons are currently in focus, and in the future the list of industries may be adjusted.
Arakhamia stressed that the new regime will not cover intermediaries and intermediary firms, as well as individuals associated with corruption schemes during the time of the former head of the Ministry of Defense. At the same time, the initiative must take into account the realities of wartime, when entrepreneurs built facilities without permits or violated formal procedures to secure production.
According to the deputy, the approach should remain flexible: the list of virtuous companies will not be spelled out in the law in order to avoid over-bureaucratic restrictions.
The Defense City bill is a response to the rapid growth of the private defense sector in Ukraine. Over a thousand new manufacturers have emerged in just three years of the war. The initiative aims to create conditions for scaling up the defense industry, reducing pressure from regulatory authorities, and accelerating the delivery of technology to the front.
It is also worth recalling how the State Enterprise «Defense Procurement Agency» (SOE) of the Ministry of Defense on June 20 concluded contracts in the «Prozorro» system for the supply of Autel EVO Max 4N and Mavic 3 Pro for a total amount of UAH 198.23 million. Prices for Chinese drones began to decline after the winter peak.
