The Cabinet of Ministers introduces state support for defense industry enterprises under financial leasing agreements: what will change for enterprises

The Cabinet of Ministers of Ukraine is introducing state financial support for enterprises of the defense-industrial complex under financial leasing agreements. This was reported by UNN with reference to the Ministry of Defense of Ukraine.

Details

The new program provides for a reduction in the lessor's remuneration. Enterprises that are recognized as critically important for the functioning of the economy during a special period in the defense industry sector will gain access to transport and equipment at reduced rates thanks to the new program.

In turn, this will significantly reduce the financial burden on businesses working for the needs of the military. This support will be provided to finance goals related to the development, manufacture, repair, modernization, and disposal of weapons, military and special equipment, and ammunition, for the purpose of:

• acquisition and modernization of fixed assets of enterprises, including equipment, dual-use machinery, and technological equipment;
• acquisition of vehicles for production and commercial needs;
• acquisition of non-residential real estate for the business activities of enterprises.

At the same time, financial leasing agreements under which state support can be provided must meet the following conditions:

• the maximum financing amount under one agreement is up to UAH 500 million (or the equivalent in foreign currency);
• the maximum term of the agreement is up to 5 years;
• the maximum amount of the lessor's basic remuneration is no more than 23% per annum;
• a one-time commission for providing leasing services is up to 0.75% of the financing amount.

Recall

Earlier, the Ministry of Defense of Ukraine launched a pilot project using photo and video recording during the acceptance of rear property for the needs of the Armed Forces.