Accessing Ukraine's Domestic Government Bonds for Foreign Investors
The Defence City initiative is a new, robust legal framework designed to support Ukraine’s defenсe industry. The draft law (No. 13420) establishes special conditions for the sector’s development until 1 January 2036 or Ukraine’s EU accession.
Key provisions:
- The law provides for the creation of a Defence City Resident Register, which is compiled and maintained by the Ministry of Defence instead of the former List of Enterprises. Obtaining resident status provides access to benefits and additional guarantees.
- Flexible criteria have been established: at least 75% of qualified income (or 50% for aircraft manufacturing enterprises), which makes the regime accessible to a much wider range of companies.
- Tax incentives have been introduced to motivate enterprises to develop: exemption from income tax on condition of reinvestment, as well as from land tax, property tax and environmental tax.
- There are plans to simplify customs procedures, facilitate the export of strategic products and introduce a special currency regime established by the NBU for residents.
- A voluntary approach to relocation, ensuring maximum comfort for business.
