Official message The Ministry of Defense of Ukraine reports on significant achievements in the field of financial and credit support for the national defense-industrial complex on July 29, 2026. Within the framework of the profile state program implemented by the Ministry of Defense, Ukrainian gunsmiths have already attracted 167 preferential loans for a total amount of over 10 billion hryvnias.
Evidence of high financial discipline and real return on investment in the MilTech sector is the fact that 12 preferential loans have already been fully repaid by manufacturers. The preferential lending program at 5% per annum is being established by the state as one of the fundamental tools for increasing the production of sovereign weapons.
Parameters and credit limit grids for defense industry enterprises
The program is designed to address two main problems of Ukrainian weapons manufacturers: the shortage of long-term investment capital for the construction of new workshops and the purchase of machine tools, as well as the lack of working capital for the purchase of imported components.
Credit limits and program terms are available under two main tracks:
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Investment projects. Lending up to 500 million hryvnias for a term of up to 5 years. The funds are used to expand production areas, purchase high-precision CNC machines, develop new models of military equipment, and carry out major modernization.
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Replenishment of working capital. Credit lines of up to 100 million hryvnias for a term of up to 3 years. Ensures prompt procurement of raw materials, microelectronics, optical fiber, and airframe components under contracts with the Armed Forces of Ukraine.
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The preferential rate is 5%. The fixed interest rate for the debtor is only 5% per annum. The state compensates the rest of the cost of bank financing directly from the defense budget.
Preferential funds are allowed to be used for the full cycle of weapons creation: from R&D and manufacturing to repair, modernization and disposal of weapons, special equipment, ammunition and their components.
Support ecosystem: financial leasing and Defence City regime
According to Hanna Gvozdiar, Advisor to the Minister of Defense, preferential lending is only one of the links in a holistic ecosystem for stimulating the Ukrainian defense industry.
"Such solutions help Ukrainian manufacturers grow, invest in their own capabilities, and confidently plan for development. A strong, technological, and sustainable defense-industrial complex is one of the foundations of Ukraine's security for the future."
The comprehensive support package of the Ministry of Defense includes additional mechanisms:
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Preferential financial leasing, which allows enterprises to obtain expensive testing and measuring equipment without withdrawing large amounts from their own turnover.
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The special legal regime of Defence City, which provides for the creation of tax, customs and regulatory preferences for defense companies (by analogy with Diya.City), which accelerates the attraction of foreign investment and simplifies the codification of new models.
Matrix of state financial instruments for the defense industry (as of July 2026)
This structure characterizes the key parameters of preferential lending to gunsmiths.
| Program parameter | Conditions of preferential lending | Operational-industrial effect |
| General fund and loans issued | Over UAH 10 billion (167 loans; 12 fully repaid) | Large-scale expansion of production lines of private and state-owned factories |
| Interest rate | 5% per annum for the manufacturer (the rest is compensated by the state) | Low financial burden on the cost of Ukrainian weapons |
| Investment limit | Up to UAH 500 million (up to 5 years) | Procurement of heavy equipment, construction of new UAV/missile assembly lines |
| Trading limit | Up to UAH 100 million (up to 3 years) | Procurement of raw materials, optical fiber and planar matrices |
| Parallel stimuli | Preferential leasing + Defence City mode | Comprehensive protection and acceleration of MilTech business development |
Why loans for UAH 10 billion are the financial foundation for the Basic Level program
The issuance of 167 preferential loans at 5% directly explains how the Ukrainian MilTech market managed to secure record contracting through the Defense Procurement Agency (DPA) in the amount of UAH 333,6 billion for the first half of 2026. The ability to attract up to UAH 100 million for working capital allowed private manufacturers to urgently purchase optical fiber for drones and interference-protected communication boards, leveling out global price jumps. Soft lending provides resources, and DOT through the DOT-Chain Defence digital system ensures the purchase of finished products and delivery to the troops in 9 days.
The investment track of UAH 500 million creates the basis for serial scaling of complex technological solutions codified by the Ministry of Defense. It is thanks to these loans that innovative companies from the Brave1 ecosystem receive licenses under Resolution No. 1310 and deploy assembly line production of Firefly guided munitions (dropped from a height of 800 m), high-altitude interceptors "Cyclops" and silent robotic complexes "Zmiy Mini" with MK19 grenade launchers. Combination of preferential capital with international grant program UNITE – Brave NATO (€50 million) allows the Ukrainian defense industry to finally reach the level of sovereign mass production of high-precision weapons.
HiTech Expert Analytical Department
