The number of companies based in Defence City has grown to 63

The number of Ukrainian defense industry companies that have been granted resident status under the special legal regime of Defence City has more than doubled since the end of May, reaching 63 companies. 

The total qualified revenue of participants from the sale of weapons and military equipment currently stands at nearly 111.3 billion hryvnia, equivalent to approximately $2.48 billion.

The special regime provides defense manufacturers with tax and customs incentives, opportunities for relocation, the ability to lease state-owned property without auctions, restricted access to sensitive information in registries, and simplified export procedures to facilitate investment in the development and scaling up of production.

Source: Ministry of Defense of Ukraine.

On January 22, 2026, the special “Defence City” regime officially launched in Ukraine, designed to simplify operating conditions for companies in the defense sector. On January 15, the Ukrainian Arms Manufacturers Council held a closed offline meeting titled “Among Arms Manufacturers: Defence City Is Up and Running—How to Become a Resident?”, dedicated to the practical aspects of the new mechanism. 

On December 17, the Cabinet of Ministers approved a package of decisions to launch the special legal regime for the development of the “Defence City” defense ecosystem, which will take effect on January 5, 2026.