As of October 2026, the special legal regime of state support for defence industry enterprises, Defence City, brings together 63 Ukrainian companies. The Ministry of Defence reported this.
The combined qualifying income of the 63 residents — that is, revenue from the sale of weapons and military equipment — amounts to almost UAH 111.3bn, the Ministry of Defence said.
The defence ministry explained that the expansion of Defence City is part of systematic work to create long-term and predictable conditions for Ukrainian manufacturers of weapons and military equipment.
“Defence City is a systemic tool for developing Ukraine’s defence industry. We are creating conditions for manufacturers that allow them to invest in their own development, protect their teams and production facilities, scale up production more quickly, and develop international cooperation,” said Hanna Hvozdiar, Deputy Minister of Defence of Ukraine.
Defence City is a special legal regime of state support for defence industry enterprises. Its launch was reported in January 2026. Tax and customs incentives are предусмотрено for its residents, as well as opportunities for relocation and enhanced protection of production facilities, restrictions on access to sensitive information in public registers, leasing of state property without auctions, and the simplification of certain procedures related to the export of defence products. Under Law No. 13420, the regime is to remain in force until 1 January 2036 or until Ukraine joins the EU.
To obtain Defence City resident status, a company must verify that it meets the requirements set out in legislation and submit an application and the required set of documents to the Ministry of Defence of Ukraine. The ministry reviews the application within 10 working days. If the decision is positive, the status is formalised by an order of the Ministry of Defence, and information about the company is entered into the Defence City register.
In September, defence industry enterprises with Defence City resident status were given the opportunity to lease state property without an auction.