A special legal regime, Defence City, has been launched in Ukraine to scale up defense production. However, the requirements for residents, particularly regarding the absence of criminal proceedings, raise questions and may hinder the industry's development.
The aviation industry of Ukraine retains critical technological competencies and generates foreign exchange earnings. The lack of state support can lead to a loss of competitiveness.
Defence City has officially launched in Ukraine, offering tax benefits and simplified procedures for defense enterprises. The first resident is a drone manufacturer, but experts point to risks and the need to refine the regime.
Colombia is preparing a large-scale UAV countermeasure project after the US conducted a special operation in Venezuela and amid new threats from Trump.
More than half of the weaponry in the Ukrainian army is currently domestically produced. In 2025, over 75% of funds for the procurement of weapons and equipment will be directed to Ukrainian manufacturers.
The Ukrainian government has approved a package of Ministry of Defense decisions to launch the Defence City space from January 5, 2026. This will provide comprehensive state support to Ukrainian arms manufacturers for scaling up, modernizing production, and generating innovations.
Germany will send troops to reinforce Poland's eastern border with Belarus and Russia as part of Operation "Eastern Shield. " The mission, which will begin in April 2026, will last until the end of 2027 and will focus on engineering work.
Dutch Minister of Defense Ruben Brekelmans officially opened the Dutch Defense Cluster in Kyiv. This center is designed for Dutch companies operating in the defense and security sector in Ukraine to more effectively coordinate their projects.
The Ministries of Defense of Ukraine and Germany have agreed on a partnership in the field of digitalization for 2026-2028. The agreement provides for financial support for key projects such as DELTA, Army+, and Reserve+.
Minister of Defense Denys Shmyhal met with mine manufacturers and discussed air defense for defense industry enterprises. The military needs a large number of mines to deter the enemy, and the ministry will facilitate scaling up production.
Aircraft-type drones, primarily reconnaissance drones, are now available for order by military units on the DOT-Chain Defence marketplace. The Defense Procurement Agency has contracted 8 Ukrainian manufacturers, offering 12 drone models.
The government submitted to the Verkhovna Rada the Program of Activities of the Cabinet of Ministers of Ukraine, which contains 12 priorities. The document covers national security, integration into the EU, the fight against corruption, and other important areas.
President Zelenskyy announced that Ukraine will present the concept of controlled arms exports in 10 days to finance the production of drones needed for the front. This will allow selling surplus naval drones and other modern weapons that are produced in greater quantities than Ukraine needs.
A new model of the underwater drone TOLOKA was presented at the Defense Tech Valley investment summit in Lviv. This event brought together more than 5,000 participants from 40 countries to discuss and demonstrate defense innovations.
25 foreign companies, including defense production giants, are localizing production in Ukraine. The government offers various cooperation models and is creating Defence City to minimize investor risks.
President Zelenskyy signed laws protecting the defense industry, which restrict access to information about enterprises. At the same time, the State Aviation Service transferred documentation for Mi-8 helicopters to a company with Russian ties, which jeopardizes national security.
Member of the Verkhovna Rada Committee Fedir Venislavskyi stated that the war is approaching its end, as evidenced by certain political processes. He also emphasized the importance of restoring benefits for aircraft manufacturing, which can become an engine of the economy.
North Korean leader Kim Jong Un announced a new strategy for the parallel development of nuclear and conventional armed forces. It will be presented at the 9th Congress of the Workers' Party, aimed at strengthening national defense and modernizing the army.
Mykhailo Fedorov announced a competition for universities to finance 70-80% of the construction of robotic laboratories. This is part of the Brave1 program, for which UAH 2.77 billion has been allocated.
Land has been allocated in a safe region of Ukraine for the construction of a new Rheinmetall plant for the production of shells. This will meet the needs of the Defense Forces and strengthen ammunition production.
The Cabinet of Ministers of Ukraine changed the procedure for reserving conscripts, prioritizing manufacturers of unmanned systems, weapons, and ammunition under state contracts. The Ministry of Defense became the sole specialized body, and reservation was extended to territories preserving the operation of state resources.
President Zelenskyy announced that 15% of army revenues come from Ukrainian communities. He emphasized the importance of continuing this support.
On the night of September 5, Ukrainian military hit the Ryazan oil refinery, damaging the ELOU-AVT-6 unit. Strikes were also carried out on the S-400 air defense system in the Kaluga region and an ammunition depot in Luhansk.
Ukraine is building its first joint weapons factory in Denmark and calls on Italy to join similar projects. Europe needs a new network of modern defense production to strengthen resilience.
The Ukrainian company "XENA" has deployed its An-32P aircraft to extinguish fires in Montenegro. This aircraft can drop up to 8,000 liters of water in a single pass, operating at an altitude of 40 meters or more.
Ukrainian aviation needs tax benefits and preferences, because without systemic support, the industry risks losing accumulated knowledge, development prospects, and professional staff. Since the beginning of 2025, the Ukrainian aviation industry has lost state support: exemption from income tax, VAT, land tax, and customs duties on imported components.
The launch of Defence City is a positive step for Ukraine's defense industry, but expert Ihor Zhdanov emphasizes the need for separate support mechanisms for enterprises that produce critically important parts but do not meet formal criteria. He calls for a review of the status of aviation enterprises and consideration of the realities of war.
European Commission President Ursula von der Leyen held talks with President Zelenskyy and President Trump after the attack on Kyiv. She called on Putin to negotiate and emphasized Europe's role in ensuring Ukraine's security.
The Defence City initiative is designed to restart the defense industry, but the aviation industry, which is an economic driver, is only partially taken into account. Its development requires separate targeted support mechanisms.
The Ukrainian aviation industry, despite the cancellation of tax benefits from the beginning of 2025, continues to operate. The industry needs new support tools to maintain competitiveness and development.
