Defence City Legal Regime: Full Implementation Phase Begins

In January 2026, the Defence City regime entered its full implementation phase, following the adoption of the relevant regulations by the Cabinet of Ministers of Ukraine.

This alert provides an overview of the adopted regulations, with a focus on the key procedures and implications for defence industry companies.

General Overview

The Defence City legal regime is a dedicated framework for Ukrainian defence companies designed to support the growth of Ukraine's defence industry, attract investment, and facilitate the supply of modern equipment and technologies to the Armed Forces of Ukraine.

The regime was introduced in August 2025 and became fully operational in January 2026, remaining in force until 1 January 2036 or until Ukraine joins the EU (whichever comes first).