Government prepares regulatory changes to simplify underground industrial construction
The Ministry of Defence of Ukraine is developing a systematic mechanism to attract private capital and investors to the construction of protected infrastructure for the defence industry. The proposed legislative changes will accelerate the creation of underground production facilities without additional state budget expenditures. This is reported by the portal PromPolitInform, citing information from the Ministry of Defence of Ukraine.
A key element of the new initiative is the preparation of amendments to the Cabinet of Ministers of Ukraine Resolution No. 1494. The updated document is designed to establish special legal conditions for the construction of both underground production facilities and the above-ground infrastructure technologically and functionally linked to them.
The draft regulatory changes have already completed the main stage of interagency coordination. Currently, the document is undergoing final adjustments based on legal and anti-corruption reviews before being submitted for consideration by the government.
The New Role of Investors in Military Construction
The proposed rules fundamentally alter the approach to designating the developer of protected facilities. From now on, this role can be assumed not only by a specific defence enterprise but also by another legal entity, including developers or private investors.
Such a developer will be able to construct a facility using private or attracted funds. Subsequently, the completed protected facility will be transferred to a defence industry enterprise for ownership, lease, or use.
“Our task is to create conditions under which Ukrainian defence production can scale up and become more protected at the same time,” said Gvozdyar. According to her, involving the construction market will allow for faster creation of new protected capacities and reduce dependence on budget financing.
Simplification of Procedures and Market Development
The draft amendments also propose to legally define the term “underground facility of production infrastructure.” The simplified construction mechanism will also apply to above-ground structures and components that are technologically and functionally connected to the underground facility.
This approach will facilitate the creation of a separate segment of protected industrial infrastructure, attracting defence enterprises, construction companies, developers, and private investors. Initial consultations with representatives of the construction sector have shown active business interest in this model.
The Ministry of Defence expects that the new mechanism will not only accelerate the expansion of protected production capacities but also simplify the relocation of defence industries to safer areas.
Photo: Ministry of Defence of Ukraine
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