--- title: "Ukraine Opens Underground Defense Factories to Private Investment: Ministry of Defense Changes Construction Rules" description: "Ukraine's Ministry of Defense is preparing amendments to Cabinet of Ministers Resolution No. 1494 that will allow developers and investors to build underground defense factories with their own funds. The document is being refined following a legal review." date: 2026-09-23T16:16:00.000Z lang: en url: https://xab.info/en/posts/ukraine-underground-defense-factories-private-investment-ministry-of-defense tags: [ukraine-defense, underground-factories, private-investment, military-industrial, opk-ukraine] publisher: "XAB.info" --- # Ukraine Opens Underground Defense Factories to Private Investment: Ministry of Defense Changes Construction Rules ![Engineer in a hard hat at the entrance to an underground defense factory in Ukraine: Ministry of Defense opens sites to private investment](https://xab.info/media/2026/09/23/ukraina-podzemnye-oboronnye-zavody-chastnye-investicii-minoborony/ukraina-podzemnye-oboronnye-zavody-chastnye-investicii-minoborony-1.webp) ## 🎯 Key Points - Ukraine's Ministry of Defense is opening the possibility for private developers and investors to build underground defense enterprises with their own funds - Amendments are being made to Cabinet of Ministers Resolution No. 1494; the document is undergoing legal and anti-corruption reviews before consideration by the Cabinet - The reform aims to reduce the defense industry's dependence on budgetary financing amid the Armed Forces' need for $27 billion Ukraine's Ministry of Defense has announced the creation of a systematic mechanism for developing protected production capacities within the defense-industrial complex, which for the first time will allow private businesses to invest directly in the construction of underground defense enterprises. This was reported by RBC-Ukraine, citing an official statement from the ministry. The key instrument of the reform is amendments to Cabinet of Ministers Resolution No. 1494, which expand the circle of potential customers for protected production facilities. ### Who Can Now Build Underground Factories A significant innovation is that the customer for the construction of protected production facilities can now be not only the defense-industrial complex enterprise itself, but also any other legal entity β€” in particular, a developer or investor. Such a customer gains the right to build the facility using its own or raised funds and then transfer it to the defense-industrial enterprise. In effect, the state is opening the door for private capital in a segment that had previously been almost entirely dependent on budgetary financing. ### Goals of the New Model According to the Ministry of Defense According to Ukrainian Deputy Minister of Defense Anna Hvozdya, the new model will allow protected production capacities to be created faster and will reduce the dependence of defense projects on the state budget. The ministry emphasizes that the goal of the reform is to enable Ukraine's defense industry to simultaneously increase production volumes amid ongoing combat operations and to attract additional resources from outside state financing. ### Status of the Document At the time of publication, the document containing amendments to Cabinet of Ministers Resolution No. 1494 is at the stage of being refined following legal and anti-corruption expert reviews. Once this procedure is completed, it will be submitted for consideration by the Cabinet of Ministers. This means that the mechanism has not yet entered into force and cannot be used by investors until it is officially approved at the government level. ### Context: Financing Shortfall for the Armed Forces The decision to attract private investment into underground defense infrastructure is being made against the backdrop of acute financial needs in the defense sector. RBC-Ukraine previously reported that Ukraine's Armed Forces require an additional $27 billion in financing, and the Cabinet of Ministers is considering several options for raising the necessary funds. In parallel, the Cabinet plans to simplify the rules for constructing underground defense enterprises in the near future, while the Ministry of Defense is preparing corresponding amendments to the regulatory framework. ### Contradictory Data No significant contradictions in figures or dates were identified in the provided sources. However, it is worth noting that the announced mechanism currently exists only at the level of the ministry's statements and a draft resolution under refinement: no specific deal involving a private developer in the construction of an underground defense factory has been confirmed, and the exact timeline for submitting the document to the Cabinet has not been specified. Thus, the actual implementation of the announced model remains at the planning stage. ## πŸ” Fact-Check Verification - [Underground military factories with private funds: Ministry of Defense to change construction rules](https://www.rbc.ua/ukr/news/pidzemni-viyskovi-zavodi-privatni-koshti-1790179789.html) - Π˜ΡΡ‚ΠΎΡ‡Π½ΠΈΠΊ ΠΏΠΎΠ΄Ρ‚Π²Π΅Ρ€ΠΆΠ΄Π°Π΅Ρ‚ анонс ΠœΠΈΠ½ΠΎΠ±ΠΎΡ€ΠΎΠ½Ρ‹ ΠΎ создании ΠΌΠ΅Ρ…Π°Π½ΠΈΠ·ΠΌΠ° привлСчСния частных инвСстиций Π² ΠΏΠΎΠ΄Π·Π΅ΠΌΠ½Ρ‹Π΅ ΠΎΠ±ΠΎΡ€ΠΎΠ½Π½Ρ‹Π΅ производства, измСнСния Π² ΠŸΠΎΡΡ‚Π°Π½ΠΎΠ²Π»Π΅Π½ΠΈΠ΅ КМУ β„– 1494, Ρ†ΠΈΡ‚Π°Ρ‚Ρƒ замминистра Анны Гвоздяр ΠΈ контСкст ΠΎ потрСбности Π² 27 ΠΌΠ»Ρ€Π΄ Π΄ΠΎΠ»Π»Π°Ρ€ΠΎΠ². Π”ΠΎΠΊΡƒΠΌΠ΅Π½Ρ‚ находится Π½Π° стадии Π΄ΠΎΡ€Π°Π±ΠΎΡ‚ΠΊΠΈ. ## ❓ FAQ ### Q: Which document is being amended to attract private investment into underground defense factories? **A:** Amendments are being made to Cabinet of Ministers Resolution No. 1494. At the time of publication, the document is being refined following legal and anti-corruption reviews before being submitted for consideration by the Cabinet of Ministers. ### Q: Who will be able to build underground defense enterprises under the new rules? **A:** The customer for the construction of protected production facilities can now be not only a defense-industrial complex enterprise, but also another legal entity β€” in particular, a developer or investor. It can build using its own or raised funds, with the facility subsequently transferred to the defense-industrial enterprise. ### Q: Has the new mechanism entered into force? **A:** No. At the time of publication, the document is at the stage of being refined following legal reviews. The mechanism will only take effect after the Cabinet of Ministers officially approves the amendments. ### Q: How much additional financing do Ukraine's Armed Forces need? **A:** According to RBC-Ukraine, the Armed Forces require an additional $27 billion in financing. The Cabinet of Ministers is considering several options for raising these funds.