Ukrainian defense manufacturers have signed 54 equipment leasing agreements worth 244.53 million hryvnias ($5.4 million) under a government program that lowers financing costs.
Introduced in late 2025, the scheme allows eligible companies to acquire machinery and other production assets through payments spread over time, avoiding the need to cover the entire purchase price upfront.
The government subsidizes the financing rate, bringing the annual rate paid by manufacturers down to 5 percent by covering the difference between that level and the provider’s base rate.
Companies remain responsible for paying for the equipment.
Each agreement can provide up to 500 million hryvnias ($11 million) in financing over a maximum of five years.
Eligibility and Equipment Requirements
Access is restricted to defense companies officially designated as critically important to Ukraine’s economy during the special period.
Eligible assets include manufacturing machinery, vehicles, and automation systems.
The equipment must support the production, repair, or modernization of defense products.
These include weapons, military equipment, ammunition, and their components.
Applicants must approach an authorized leasing provider, which checks their financial standing, eligibility, and proposed equipment purchases.
Deputy Defense Minister Anna Gvozdiar said the initiative is intended to help manufacturers expand and modernize their facilities while retaining funds for day-to-day production needs.
The agreements follow guidance Ukraine’s Defense Ministry issued in August on using subsidized leasing to expand production, meet new orders, and spread equipment costs over time.
The ministry identified several potential uses, including removing production bottlenecks, shortening manufacturing lead times, automating operations, and replacing outdated machinery.
Companies could also use the scheme to begin serial production of new products.
