Ukraine unveils major support mechanism for defense sector

Ukraine unveils major support mechanism for defense sector

Ukraine

This year, a leasing mechanism is expected to be added to the financial support programs aimed at developing Ukraine’s domestic defense industry.

This was announced by Herman Smetanin, Minister for Strategic Industries of Ukraine, CE Report quotes Ukrinform.

“Currently, we have a preferential loan program with a 5% annual interest rate. Additionally, just recently, together with the Ministry of Economy, we launched the grant program Made for Victory. Right now, we are working on a leasing program. I hope we will complete its development in the coming months. This way, we will have three instruments that will significantly increase production each year — something the industry has lacked for many years,” said Smetanin.

He noted that under the preferential loan program, nine agreements have already been signed with manufacturers of military equipment, seven of which were signed since the beginning of 2025. This program offers loans of up to UAH 100 million for working capital (up to three years) at 5% annual interest, and up to UAH 500 million for investment projects (up to five years).

As of April, 50 applications have already been submitted to participate in the program.

“The program has only been running for four months. Some mechanisms are a bit complex for our manufacturers, but we are listening and working to simplify these procedures. Still, 20% of applicants have already received funding. The first agreements always take longer to finalize, but I believe our producers will move more quickly through the process in the future,” Smetanin added.

As reported, the Ministry for Strategic Industries, together with the Ministry of Economy of Ukraine, has launched a support program for Ukrainian manufacturers of components for weapons and military equipment called Made for Victory. Companies can receive up to UAH 8 million to purchase equipment under a co-financing scheme — 50% is covered by the state, and 50% by the manufacturer. A total of UAH 1 billion will be allocated from the state budget for this program.

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