The government is simultaneously preparing two new financial support mechanisms for Ukrainian arms manufacturers.

Ukraine’s military-industrial complex currently consists of 500 defense companies, 80% of which are private. Before the full-scale war began, private companies occupied 20% of the market.

In 2023, Ukrainian gunsmiths increased production by 200% to $3B. However, manufacturers lack working capital due to a scarcity of available funds, making it difficult to invest in development.

To address this, the government has introduced the following two programs:

1. For manufacturers already operating in the market, a mechanism for the state to guarantee loans for private manufacturers based on the current program of portfolio guarantees.
2. For startups, the provision of loan interest rate compensation that is based on the current Affordable Loans 5–7–9% program.

The Ministry of Strategic Industries expects the resolution to be adopted by the end of the month. If such mechanisms are introduced for military industrial enterprises, the state-owned Oschadbank can start financing defense industry companies on new terms within four to seven weeks, providing tens of billions of hryvnias in financing for this market segment.