Investors have gained the right to construct fortified workshops without obtaining standard permits
The Cabinet of Ministers has authorized private investors and developers to construct underground production facilities for defense industry enterprises. Under this pilot project, businesses will be able to finance the construction of protected workshops and subsequently lease or transfer them to arms manufacturers. This was reported by Minfin, according to the portal PromPolitInform.
The government’s decision aims to attract private capital to develop infrastructure for the defense forces, thereby reducing the financial burden on the state budget. The updated mechanism allows developers to independently finance facility construction and, upon completion, transfer the premises to defense enterprises through ownership or lease agreements.
Conditions for cooperation with defense enterprises
To participate, an investor must first enter into a contract with a defense enterprise falling under specific categories. These include residents of the special legal regime Defence City, contractors of state defense orders, and manufacturers recognized by the Ministry of Defence of Ukraine as critically important for the security sector.
The agreement between the investor and the defense enterprise must include the transfer of at least 25% of the total area of the facility if only part of the premises is being used. The lease term or duration of other legal use must be at least one year, with the defense enterprise retaining the right to request an extension until the end of martial law.
Simplified construction regime
The government has introduced a simplified procedure for such projects, eliminating the need for construction permits and the approval of urban planning conditions and restrictions. Investors must submit a document package, including a draft agreement, to the Ministry of Defence of Ukraine, which conducts a review within five business days.
Safeguards regarding foreign capital
Companies with a 10% or greater ownership stake held by the aggressor state or its residents are prohibited from constructing these protected production sites. The participation of individuals subject to sanctions is also strictly forbidden.
Before submitting documents, investors must verify that there are no risks of control by the russian federation or sanctioned entities. Comprehensive checks regarding ownership structures and all related parties are conducted to prevent any hostile influence over the creation of these strategic facilities.
Photo: Minfin
