Defence City
Ukraine is scaling up the production of cheap interceptor missiles to combat Shaheds. The weapons stockpile is being prepared for the autumn-winter period.
The Ministry of Defense presented a Ukrainian laser simulator that fully replicates the Stinger MANPADS. The system allows for practicing the full cycle of destroying enemy drones.
The Unmanned Systems Forces are deploying FP-2 drones with unguided rockets to breach Russian air defenses. This technology enables the destruction of enemy communication hubs and electronic warfare (EW) systems.
The expert reported a raiding attack on Fire Point, the company producing Flamingo missiles. The pressure could lead to a halt in the production of Ukrainian weaponry.
The Fire Point company presented the Freya project to combat ballistic missiles amid a shortage of Patriot systems. The system will serve as a cheaper and faster alternative.
A modernized TR-85M1R tank with folding anti-drone protection was presented in Bucharest. Romania plans to upgrade 108 vehicles based on the Ukrainian model.
Umerov discussed prisoner exchanges and ending the war in the US. Ukraine signed four Drone Deals, which secured the fuel market.
The President has instructed the development of a legislative framework for the creation of Ukrainian PMCs by the end of the year. Veterans will be able to monetize their experience through security exports.
Ukraine and the EU are preparing a Drone Deal for the joint production of unmanned aerial vehicles. Hnatov and Umerov have been tasked with developing the necessary security infrastructure.
Inguar Defence has developed a medical version of the Inguar-3 armored vehicle for the evacuation of two wounded personnel. The vehicle features protection against mines and FPV drones.
24 companies have joined the private air defense project to protect their facilities. Civilian groups operate under the control of the Armed Forces of Ukraine without receiving exemptions from mobilization.
Zelenskyy has approved arms exports in cases of production surplus of up to 50%. Companies will receive automatic permits to sell surplus equipment and drones.
Hetmantsev called for the development of the defense industry and arms exports through the Defence City special regime. Ukraine ranked seventh in the world in terms of military spending.
BlueBird Tech is developing a Ukrainian analog of the Patriot for intercepting ballistics. The project is at the starting stage and requires the creation of complex guidance systems and engines.
TAF Industries and Summa Defence will create a joint venture for drone manufacturing. The project will allow for the scaling of UAV production at secure sites.
Since the beginning of 2026, the military has received twice as many interceptor drones as in the entire year of 2025. In March, they shot down a record 33,000 enemy UAVs.
Yuliia Svyrydenko stated that Ukraine is capable of producing modern weaponry. She called on Poland to implement joint defense projects.
Norway will produce Ukrainian mid-strike drones with a range of up to 200 km. The first delivery for the Armed Forces of Ukraine is expected by the beginning of summer.
The Association proposes lowering the defense revenue threshold from 90% to 50% and automating the process of obtaining resident status. The proposed changes include expanding tax benefits and reinvestment conditions.
Danylo Hetmantsev stated the need to ease requirements for potential residents of Defence City. This will allow expanding the circle of participants and stimulating the industry.
The special regime of Defence City faces low demand due to audit and criminal case requirements. Experts call for urgent changes in laws.
Legislative barriers and strict requirements for criminal cases hinder the development of Defence City. Businesses choose Diia.City due to more favorable conditions and lower risks.
The Aerospace Association is collecting business proposals to remove barriers in Defence City. The proposals will be submitted to the relevant committee of the Verkhovna Rada.
Lawyer Dmytro Maistro called for changes to the rules for accessing Defence City. Formal criminal proceedings and unclear audit requirements are blocking the work of enterprises.
Gennadiy Kasai, a member of the Verkhovna Rada's defense committee, calls for simplifying requirements for Defence City residents. In particular, the norm regarding the existence of criminal cases needs clarification.
The special regime of Defence City is a correct initiative, but it needs refinement. This will allow attracting not only large enterprises, but also small and medium-sized businesses.
The special regime of Defence City, which provides tax and customs preferences for defense manufacturers, has legislative gaps. The requirement for the absence of criminal proceedings complicates access to it for many enterprises.
In two months of Defence City's special regime operation, only one company has received resident status. Expert Ihor Garbaruk believes that the problem lies in the lack of a systemic approach by the state and the need to refine legislation.
Economist Bohdan Dolintse stated that Defence City has significant advantages but is not a universal solution for all market players. He highlighted the lack of incentives for production localization and formal barriers for potential residents.
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.