Foreign military production companies from various nations are drawn to Ukraine, aiming to set up local manufacturing facilities within the country
Ukraine's Defence Minister, Denys Shmyhal, has announced a special regime for developing the country's defence industry. This initiative aims to strengthen the Ukraine war's defence capabilities and attract foreign investment.
The special regime offers numerous benefits, including tax advantages, simplified customs procedures, and mechanisms for relocating production to safer regions. It also provides expanded state financial support, opportunities for export, and integration into global supply chains.
The purpose of Defence City, a new initiative by the Ukrainian government, is to minimise risks for investors and make joint ventures in Ukraine more attractive.
Currently, approximately 25 foreign companies are localising their production in Ukraine, with some being global defence industry giants. The Ukraine defence industry, comprising about 100 companies under the National Association of Ukrainian Defense Industry (NAUDI), is also actively participating in this growth.
One such company is Fire Point, a Ukraine defence company producing the Flamingo cruise missile. Recently, Fire Point started manufacturing components like fuel outside Ukraine in Denmark, marking cross-border production collaboration. These companies focus on meeting domestic military needs while increasing production capabilities and expanding export opportunities to support Ukraine war's defence potential.
The priority for these partnerships is to ensure that the majority of the companies' products meet the needs of the Ukraine military. The Ukraine government is offering various cooperation models to partners, including the Danish model known as Build with Ukraine / Build in Ukraine.
President Volodymyr Zelenskyy has signed the laws launching Defence City. This initiative is expected to further boost the defence industry, making it more attractive to foreign investors and partners.
In conclusion, the special regime for developing Ukraine war's defence industry, along with the Defence City initiative, offers a promising future for the country's defence sector. With its emphasis on export opportunities and integration into global supply chains, Ukraine is positioning itself as a key player in the international defence market.
Read also:
- Upcoming French Electoral Outcome and Its Potential Implications for Macron
- Indispensable Digital Files Every Scribe Demands for their Screenplay Journey
- Rising state pension ages disproportionately impact a particular demographic, raising questions about the necessity of extending working years.
- Increase in mortality among seniors due to falls
