The Cabinet of Ministers approved the revisions on a proposal from the Defence Ministry. Local authorities have been advised to charge annual rent on municipal property equivalent to 8% of its assessed value, a recommendation rather than a mandatory rate.
The government also widened eligibility to include makers of drones, electronic warfare systems and equipment that passively counters technical reconnaissance. Other eligible businesses include specified missile-system manufacturers, developers of new or upgraded missile weapons and producers of military explosives.
Companies previously had to satisfy three requirements at the same time to use the auction-free mechanism. They now need to meet just one of four conditions: Defence City residency, critical-enterprise designation, entry in the relevant state-contract register or qualification under the specified defence-production categories.
“The less time a manufacturer spends searching for and obtaining the infrastructure it needs, the sooner it can direct resources straight into scaling up production,” said Deputy Defence Minister Hanna Hvozdiar. The ministry said the policy is intended to let manufacturers devote more time and resources to increasing output.
An applicant must submit a written request to the landlord to place the asset on the list of property available without auction and provide evidence that it qualifies. The Defence Ministry has five working days after receiving the application to confirm eligibility to the landlord or notify it that none of the criteria has been met.
More than 50 weapons and military equipment manufacturers have joined Defence City, according to the ministry. The leasing change forms part of its wider effort to attract investment and expand Ukraine’s defence industrial capacity.
