Ukraine grants Defence City status to major combat drone manufacturer

Ukraine has granted the first resident status under its newly launched Defence City initiative to a major domestic manufacturer of combat drones, including the “Vampir” and “Shraik” systems, as well as interceptors used against Iranian-made Shahed UAVs.

Defence Minister Denys Shmyhal announced that the Ministry of Defence had officially approved the company as the inaugural participant in the programme. He described the firm as one of the country’s largest high-technology drone producers and said its systems had demonstrated strong performance on the battlefield, Caliber.Az reports via Ukrainian media. 

Shmyhal explained that Defence City represents a comprehensive state policy designed to create favourable conditions for scaling up defence manufacturing, attracting investment, and accelerating the development of Ukraine’s defence industry.

He noted that companies granted resident status gain access to a range of incentives aimed at expanding production. These include exemptions from corporate income tax provided profits are reinvested into development, as well as relief from land, property, and environmental taxes.

Additional benefits include simplified customs procedures, enhanced guarantees for the protection of sensitive information and commercial confidentiality, and state support for the relocation and security reinforcement of production facilities when required.

Ukrainian authorities view the Defence City platform as a key element in strengthening domestic arms production amid ongoing security challenges and sustained demand for advanced military technologies.

By Sabina Mammadli