---
title: "Ukraine's Ministry of Defense Expands Defence City Cluster to 63 Defense Enterprises"
description: "Ukraine's Ministry of Defense has expanded the Defence City cluster to 63 defense industry enterprises. The total qualified income of residents reached nearly 111.3 billion hryvnias."
date: 2026-10-20T07:12:08.397Z
lang: en
url: https://xab.info/en/posts/ukraines-ministry-defense-expands-defence-city-cluster
tags: [defence-city, ukraine-defense-industry, opk, military-production, ukraine-mod]
author: "Darya Fomina"
publisher: "XAB.info"
---

# Ukraine's Ministry of Defense Expands Defence City Cluster to 63 Defense Enterprises

![Black drones and drone frames lie on cardboard boxes at a manufacturing facility](https://xab.info/media/2026/10/20/minoborony-ukrainy-rasshirilo-klaster-defence-city-do-63-predpriyatiy/minoborony-ukrainy-rasshirilo-klaster-defence-city-do-63-predpriyatiy-1.webp)

## Key Points

- The number of Defence City cluster residents grew from 31 at the end of May to 63 enterprises currently
- The total qualified income of the 63 residents from the sale of weapons and military equipment is nearly 111.3 billion hryvnias
- Residents receive tax and customs incentives, relocation opportunities, and enhanced protection of production facilities
- Review of an application for resident status takes 10 working days

The Ministry of Defense of Ukraine has announced a significant expansion of the pool of residents under the special legal regime of state support for the defense-industrial complex, known as the Defence City cluster. According to the ministry's press service, the registry currently includes 63 domestic enterprises that receive tax, customs, and other incentives to develop the production of weapons and military equipment.

### Growth Dynamics: More Than a Doubling in a Few Months

According to information provided by RBC-Ukraine citing the Ministry of Defense, the number of Defence City residents has more than doubled since the regime came into effect. At the end of May, the cluster consisted of 31 enterprises, by July their number increased to 45, and today it has reached 63. The total qualified income of all 63 residents—meaning revenue from the sale of weapons and military equipment—amounts to nearly 111.3 billion hryvnias. These figures indicate that Ukraine's defense industry is experiencing a period of accelerated scaling driven by both the internal needs of the Armed Forces of Ukraine and growing international demand.

### What is Defence City and What Incentives Do Residents Receive

Defence City is a special legal regime of state support for companies within Ukraine's defense-industrial complex. Enterprises granted resident status are provided with a package of measures that includes tax and customs privileges, opportunities to relocate production facilities to safer regions, and enhanced protection of the production sites themselves from air attacks. According to Deputy Minister of Defense of Ukraine Hanna Hvozdiar, «Defence City is a systemic tool for the development of Ukraine's defense industry. We are creating conditions for manufacturers that allow them to invest in their own development, scale production faster, and develop international cooperation».

### Procedure for Obtaining Resident Status

To join the cluster, an enterprise must verify its compliance with the requirements established by current legislation and submit an application to the Ministry of Defense of Ukraine along with the required package of documents. The ministry reviews the application within 10 working days. In the event of a positive decision, resident status is granted by an order of the Ministry of Defense, after which information about the enterprise is entered into the Defence City registry. This relatively short application review period allows companies to quickly gain access to support measures in conditions where production volumes need to be increased within tight deadlines.

### Context: Accelerated Production Rates and the Use of Interceptor Drones

The expansion of the Defence City cluster is taking place against the backdrop of intensive use of unmanned systems by both sides of the conflict. It was previously reported that the Ukrainian military is already using seven different types of interceptor drones to intercept Shahed-type strike drones. At the same time, the enemy's industry is operating at an accelerated pace: according to available data, Russia launches jet drones against Ukraine almost immediately after they roll off the assembly line, bypassing prolonged warehousing. It is precisely under such conditions that the Defence City cluster acts as an accelerator, allowing domestic manufacturers to quickly scale up capacities, introduce new technologies, and coordinate international cooperation in the field of defense technologies.

## Fact-Check & Sources

- [В Украине существенно расширяется кластер Defence City: как он работает](https://www.rbc.ua/ukr/news/ukrayini-suttevo-rozshiryuetsya-klaster-defence-1792479908.html) - Primary source. All key figures (63 residents, 31 in May, 45 in July, 111.3 billion UAH), Hanna Hvozdiar's quote, description of the legal regime, and application procedure are confirmed by the source text.

## FAQ

### How many enterprises are currently in the Defence City cluster?

Currently, 63 domestic enterprises of the defense-industrial complex are listed in the Defence City registry.

### What is the total qualified income of Defence City residents?

The total qualified income of the 63 residents, meaning revenue from the sale of weapons and military equipment, is nearly 111.3 billion hryvnias.

### What incentives do Defence City residents receive?

Residents are provided with tax and customs privileges, opportunities to relocate production facilities, and enhanced protection of production sites.

### How long does it take to review an application for resident status?

The Ministry of Defense reviews the application within 10 working days. Upon a positive decision, the status is granted by a departmental order, and the information is entered into the registry.