Ukraine is preparing a legal framework allowing private investors to build subterranean facilities to shield its military defense production from continuous Russian missile and drone strikes.
Deputy Defence Minister Hanna Hvozdiar revealed that the move is backed by amendments drafted to Cabinet Resolution No. 1494, which promotes secured underground plants to rebuild and expand the war-torn country’s industrial network.
The proposed updates enable private developers to construct reinforced infrastructure using self-funded or borrowed capital before transferring the spaces to defense contractors through lease, sale, or usage agreements.
“This is our new reality … for as long as Russia exists,” Hvozdiar stated, noting that establishing protected manufacturing hubs remains a top ministry priority.
“We are working hard with manufacturers and developers, looking for new technological solutions. And we can already see that some of the developments can be scaled far beyond the defense industry,” she added.
Widescale Rehabilitation at Work
The initiative follows broader efforts by Ukrainian weapon manufacturers to adapt to wartime conditions by decentralizing production, building masked subterranean complexes, and moving assembly lines abroad.
Beyond infrastructure reforms, Kyiv is expanding its “Defence City” initiative, which currently supports 51 firms representing over 93 billion hryvnias ($2 billion) in revenue, granting tax, customs, and employee reservation benefits.
The government is also developing specialized military risk insurance models and raising working-capital loan caps for defense enterprises to preserve production continuity.
Sources indicate that structural approaches to be used for future underground military facilities could eventually be adapted to protect critical civilian and logistics sectors during prolonged security threats.
