The President of Ukraine, Volodymyr Zelensky, has endorsed new legislative initiatives that introduce a special regime called Defence City aimed at supporting Ukrainian defense companies. This was reported by Defense Minister Denys Shmyhal.

As a reminder, on August 21, members of the Verkhovna Rada voted on two significant documents: No. 13420 "On Amendments to the Tax Code of Ukraine and Other Laws for Supporting the Defense Industry" and No. 13421 "On Amendments to Section XXI 'Final and Transitional Provisions' of the Customs Code of Ukraine".

According to the official website of the Verkhovna Rada, document No. 13420 has already received the President's signature. However, as of 13:50, there was no information regarding the signature of No. 13421.

The head of the defense department noted that Defence City offers a range of benefits for manufacturers of weapons and military equipment:

• Exemption from profit tax (provided reinvested);
• Exemption from land and property tax (if used in production);
• Exemption from environmental tax;
• Simplification of customs procedures;
• Simplified regime for international transfer of defense products;
• Support from the state for relocation and enhancing the protection of production capacities.

"Defense industry manufacturers that are strategically important for the country's defense capability and meet transparency requirements will be able to openly participate in Defence City," added Denys Shmyhal.

Prior to the vote on these laws, three major associations representing nearly the entire Ukrainian private arms market expressed their opinions on the new legal regime. More details can be found in the article "Arms Industry": "The idea is good, but what about the implementation...? Manufacturers commented on the largest reform of weapons production, Defence City".