Two modernized Mi-8MT helicopters returned to the military without weapons after overhaul. The situation escalated into a criminal proceeding, blocking the return of the equipment to combat readiness.
Despite closed skies and war, Ukrainian aircraft manufacturing remains one of the largest donors to the state budget: every hryvnia of tax benefits returns to the state in 2. 5–3 times the amount. The industry not only generates billions in revenue but also maintains tens of thousands of jobs and critical defense technologies, which is why the state needs to restore tax preferences for the industry.
The head of the State Aviation Service, Oleksandr Bilchuk, transferred the maintenance of repair documentation for Ukrainian helicopters to AAL Group Ltd, a company with ties to the Russian defense-industrial complex. Despite Rostec certificates and a ban on cooperation from the United States, the company still has access to sensitive technical information.
The former president of Motor Sich will remain in custody until December 20 of this year. The bail amount is almost 910 million hryvnias.
The Verkhovna Rada will consider draft laws on Defence City. MP Venislavsky called for the inclusion of the aircraft manufacturing industry in the initiative and to provide it with tax benefits, as it is an economic driver.
Lawmakers are working on amendments to include aircraft manufacturing enterprises in the special regime.
The Verkhovna Rada is preparing to consider draft laws on Defence City.
The Ukrainian government presented 12 priorities for 2026, with security and defense being key. The Defence City initiative and cooperation with global companies Rheinmetall, BAE Systems are important directions.
The National Association of Defense Industry of Ukraine (NAUDI) appealed to the parliament with a call not to adopt the legislative package on Defence City in its current version and to return it to the main committee for revision and repeated second reading.
Ukrainian aviation enterprises seek to join Defence City to preserve and develop their capacities. This will provide access to investments, international markets, and modern defense technologies.
People's deputies are discussing the inclusion of aviation enterprises in Defence City.
Ukrainian army aviation successfully uses Soviet equipment, but the industry risks losing the ability to maintain it. Without state support, production potential and maintenance of military equipment are under threat.
The government initiative Defence City may exclude the aviation industry, which threatens defense capabilities. This will lead to production shutdowns, outflow of specialists, and loss of international image.
The Ukrainian aviation industry retains potential and personnel despite the war, but requires state support. The inclusion of aircraft manufacturing enterprises in Defence City is key for further development.
The Diia City United business association proposes to finalize the Defence City special regime before the second reading. They draw attention to 5 aspects, among which are guarantees for a wide range of companies and data protection for defense companies.
The full-scale war has placed Ukrainian businesses under extraordinary pressure. For the aviation sector, this has meant more than the loss of access to infrastructure — it has brought a complete shutdown of the domestic market, forced relocation, adaptation to new realities, and the challenge of maintaining world-class standards on the international stage.
Serhiy Zgurets proposes to soften the requirements for joining Defence City and extend the term for profit reinvestment. These changes will allow companies with dual-use products to join and better plan large-scale projects.
The Aerospace Association of Ukraine positively assessed the authorities' readiness for dialogue regarding the Defence City bill. The Association emphasizes the need to consider market proposals to preserve the aircraft manufacturing industry.
Mykhailo Pinkevych, a veteran of the Russian-Ukrainian war and advisor to "Konstanta Airlines", emphasizes the strategic importance of Ukrainian aviation for the country's image and its development.
The Head of the VR Committee on Finance, Danylo Hetmantsev, announced the easing of criteria for defense industry enterprises to participate in the Defence City initiative.
Ukrainian aircraft manufacturing, which services Western aircraft and modernizes military aircraft, lost state support from January 1, 2025. The Defence City initiative could be a lifeline, but it needs changes to include aircraft manufacturing enterprises and lower the income threshold from defense contracts.
The Verkhovna Rada adopted in the first reading draft laws on Defence City, which provide for tax and customs benefits for defense industry enterprises. However, the aviation industry may remain outside the regime due to strict criteria, which jeopardizes its potential and the country's defense capability.
Ukraine's aviation industry, which has preserved a full production cycle, has reoriented itself to defense needs but requires state support. The lack of benefits threatens the loss of competitiveness and personnel, despite successful operation, as exemplified by the ferry flight of An-124-100 "Ruslan" to Germany.
A modernized helicopter for the Ukrainian Air Force, equipped with modern weapons and a secure communication system, has successfully passed tests. However, despite being ready for service, it remains unused due to criminal proceedings and bureaucratic obstacles.
On July 16, the Verkhovna Rada of Ukraine adopted in the first reading three draft laws on the creation of a special legal regime for Defence City. The documents provide for tax benefits for residents until 2036, but the aircraft manufacturing industry does not fall under the criteria.
The Defence City initiative is preparing for a vote, but experts warn of the risk of excluding the aviation industry due to the criteria. This could affect support for military equipment and the preservation of defense infrastructure.
Yarema Zhuhayevych, Head of the Aviation Industry Workers' Union, emphasized the importance of preserving human potential and state defense orders for Ukraine's aviation industry. The industry modernizes equipment, develops drones, and supports combat aviation, creating 8-12 jobs in related sectors.
A package of bills on the creation of a special legal regime for Defence City was discussed with representatives of G7 and NATO countries. The initiative provides for information protection, tax benefits, and simplification of customs procedures for arms manufacturers.
Since January 2025, state benefits for aircraft manufacturing enterprises have ceased to operate in Ukraine. The aviation industry risks remaining outside the Defence City initiative, which could lead to a loss of potential.
Experts emphasize that without the adoption of the "Defence City" bills, the Ukrainian defense-industrial complex will not be able to fully develop, compete, and attract investments. The bills provide for tax, customs, and budget changes, as well as amendments to the Criminal Code.
