The state subsidises interest rates for military production equipment leases
Ukrainian defence industry enterprises have concluded 54 preferential financial leasing agreements totalling UAH 244.53 million. The program aims to support critical defence sector companies in expanding their manufacturing capacities. This is reported by the portal PromPolitInform, citing information from the Ministry of Defence of Ukraine.
The government mechanism supporting the defence industry allows enterprises to procure new equipment and machinery without paying the full cost upfront. Launched in late 2025, the initiative distributes the financial burden over time, freeing up operating capital for current manufacturing needs.
Key Terms and Parameters of the Leasing Program
The state program reduces actual lease management fees for borrowers down to 5% per annum. The difference between the baseline rate and the subsidised rate is covered by the state budget. Financing under a single agreement is capped at UAH 500 million, with a maximum term of five years.
Eligible applicants must hold critical infrastructure status within the defence sector during the special period. Funds can be used to acquire production machinery, automation tools, and vehicles required for the manufacture, overhaul, or modernisation of military hardware and ammunition.
Application Process and Eligibility Rules
“The domestic defence industry’s capacity to swiftly scale up output directly impacts the supply of the Defence Forces of Ukraine. Preferential leasing helps manufacturers invest in upgrading their equipment while retaining capital for immediate operational targets,” noted Deputy Minister of Defence of Ukraine Hanna Hvozdyar.
To secure financing, a company must apply to an authorised lessor. The leasing provider reviews the eligibility of the requested assets, assesses the applicant’s financial standing, and verifies its official defence sector status.
Photo: Ministry of Defence of Ukraine
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