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.
The return of tax preferences for the aviation industry, which were in effect until 2024, can bring the state 55 billion hryvnias in tax revenues over 10 years. This will also stimulate the development of a strategic industry that is currently on the verge of survival.
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 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.
