Defense City – why is this status so necessary for Ukrainian manufacturers? In Ukraine,…
Ukraine plans to create a separate legal regime for companies. It was called Defense City – by analogy with Diya City, but with a focus on military and dual-use technologies. The key idea is to provide Defense City residents with tax, customs, administrative and legal advantages.
Arms manufacturers point out that this project was needed long ago and that it was appropriate to adopt it back in 2014. Stanislav Hryshyn, co-founder of the Ukrainian defense-tech company General Chereshnya, in a column for Economic Truth, gives the following key arguments:
The defense industry is an integral part of the Security and Defense Sector, but manufacturers do not have any status.
This reduces liability for activities (quality of products, subversive activities regarding the disruption of supplies/contracts).
In addition, a special status is necessary to increase the safety of manufacturers: both physical and legal.
Defense City mode should fix these system flaws. But really efficient and strong defense market players who have passed must get there detailed compliance (financial, legal, security), have the necessary production capacity and are ready for constant transformation in the conditions of war.
According to Stanislav, this will make it possible to build an effective system and weed out “drone barges” that do not give the necessary impetus to the market.
You can read the position in detail at the link.
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