Ukraine simplifies underground construction for defense industry companies
The Cabinet of Ministers has adopted a series of measures for the defense industry, including involving private businesses in the construction of industrial facilities, exempting components supplied by international partners from VAT and customs duties, and introducing a "single window" procedure for such goods.
Ukrainian Prime Minister Sergii Koretskyi announced simplified underground construction measures for defense industry companies via Telegram. The government aims to bolster the defense industry amid escalating Russian aggression by facilitating private investment in underground facilities.
Under the first measure, private businesses can now construct and subsequently lease or sell underground production sites to weapons manufacturing companies. This simplification is expected to boost facility availability and streamline the process.
Secondly, the government exempts defense-related components financed by international partners from import duties and VAT while also simplifying customs clearance procedures. A "single window" system has been introduced to expedite these processes.
The Ministry of Defense elaborated on the decision, highlighting the initiative to expand private investment opportunities in protected production facilities and related infrastructure. This move provides private investors with a streamlined mechanism for construction and permitting. Developers will be able to build and subsequently transfer these facilities to defense companies through sale, lease, or other arrangements, contingent upon agreements between investors and defense firms.
At least 25% of the facility's floor space must be designated for defense purposes. To utilize this mechanism, developers must collaborate with relevant entities such as Defence City residents, state contractors, and critical defense industry companies designated by the Ministry of Defense.
Ukrainian Defense Minister Yevhenii Khmara emphasized the importance of bolstering Ukraine's defense industry by relocating production to protected facilities. He stressed the government's commitment to providing a more flexible mechanism to attract non-budgetary funding for these projects, thereby accelerating production capacity expansion and simplifying relocation efforts for defense industry companies.
Written by urgent.news from Ukrinform - Economy's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
