The Verkhovna Rada has adopted in the second reading bills No. 13420 and No. 13421, which lay the legal foundations for the implementation of the state initiative Defence City. This program aims to support and develop Ukraine’s defense industry.
This is reported by Business • Media
Creation of the Defence City Residents Register and Special Conditions
According to the new laws, the Ministry of Defense will form and maintain the Defence City Residents Register. Participants will be able to obtain special status if at least 75% of their qualified income comes from the defense sector (for aircraft manufacturing companies, this threshold is 50%).
The legal regime of Defence City will be in effect until January 1, 2036, and provides a range of benefits for manufacturers:
- exemption from profit tax and other fees in case of reinvestment of income;
- simplified customs procedures and export control;
- special conditions for currency supervision and operations conducted by the National Bank of Ukraine;
- state support for relocation and enhancing the security of production facilities.
Increased Funding for Innovation and Cybersecurity
In addition, the parliament has decided to increase funding for the creation and testing of cutting-edge technologies used on the battlefield. In particular, approximately 2.77 billion hryvnias will be allocated for grants to weapon developers within the Brave1 project, and 1.42 billion hryvnias for testing special means. An additional 69.4 million hryvnias is allocated to strengthen the cybersecurity of the state service “Diia”.
The documents provide for the creation of the Defence City Residents Register, which will be maintained by the Ministry of Defense. Participants will be able to obtain special status provided that the share of their qualified income is at least 75% of the total (for aircraft manufacturing – at least 50%).