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Ministry of Defense prepares underground construction for defense factories and expansion of Defence City

The creation of underground protected infrastructure for the Ukrainian defense-industrial complex and the expansion of preferences for Defence City residents will become one of the key areas of work of the Ministry of Defense of Ukraine.

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Ministry of Defense prepares underground construction for defense factories and expansion of Defence City

The creation of underground protected infrastructure for the Ukrainian defense-industrial complex and the expansion of preferences for Defence City residents will become one of the key areas of work of the Ministry of Defense of Ukraine.

This was reported by Deputy Minister of Defense Anna Hvozdiar in a post on her Facebook, in which she announced her return to the defense ministry from the position of advisor to the head of the Ministry of Defense.

One of the main priorities of the department is to create regulatory and technological conditions for moving defense production underground in conditions of constant shelling from Russia. According to the government official, comprehensive amendments to the Cabinet of Ministers' Resolution No. 1494 have already been developed. The new model will allow private investors and developers to build protected facilities using their own or borrowed funds, and then transfer them to defense industry enterprises for ownership, use or lease. Some of these technological solutions are planned to be scaled up beyond the military industry in the future.

In parallel, the state is expanding the special legal regime of Defence City, which is designed to create the most favorable conditions for the development of Defense Tech. Currently, 51 defense companies with a total qualified income of over UAH 93 billion already have resident status.

Tax, customs and currency benefits, as well as simplified employee reservation mechanisms, are already in place for resident companies. The Ministry of Defense, together with deputies, government officials and economic experts, is currently preparing the next package of market capacity expansion that will allow companies to scale faster.

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