The Cabinet of Ministers has backed amendments to Resolution No. 1494, opening access for private capital to a simplified mechanism for building protected production facilities and obtaining the necessary permits. This was reported by the Defence Ministry’s press service.
Developers will be able to build protected facilities using their own or raised funds and, once construction is complete, transfer them to defence industry enterprises into ownership, lease, or use, the Defence Ministry explains.
Construction timelines, the terms of use of the facility, and the procedure for its transfer will be set out in an agreement between the investor and the defence industry enterprise. If only part of the constructed facility is transferred to a defence company, its area must be at least 25% of the total area and be suitable for housing, relocating, or expanding production capacity, the ministry said.
“Ukrainian defence enterprises must not only increase output but also protect their capacity from enemy attacks. To that end, we are opening up the opportunity for private capital to invest in the construction of underground infrastructure. Enterprises will receive protected production space, investors a new avenue for investment, and the state additional capabilities to ensure uninterrupted production of weapons and military equipment without additional pressure on the budget,” said Deputy Defence Minister of Ukraine Hanna Hvozdiar.
For developers to make use of the mechanism, it will be necessary to conclude agreements, including with Defence City residents, state contract исполнители and enterprises designated by the Ministry of Defence as critically important in the defence industry sector.
As a reminder, the Defence Ministry reported in September that it was working on creating a systematic mechanism to develop protected production infrastructure for defence industry enterprises.