Defense companies will be allowed to include interest on loans in the cost of production – Shmyhal

The Ministry of Defense is preparing amendments that will allow defense companies to include interest on loans in the cost of production. About reported defense minister Denis Shmyhal after a meeting with the Ministry of Finance and heads of state-owned banks on July 22.

According to Shmyhal, this should significantly facilitate the work of defense companies.

The meeting discussed strengthening financial support for the defense sector. One of the key topics was the implementation of the "Dutch model", which provides for direct contracts with manufacturers, investments in Ukrainian defense companies and the creation of joint ventures.

State-owned banks have already started working as part of a consortium that lends to defense production under state guarantees. They are expected to take a more active part in financing defense companies.

The Ministry of Defense, together with the Ministry of Finance, will promptly process the banks' proposals.

The new rules are expected to significantly increase arms production and strengthen the country's defense capabilities.

• on July 21, Shmyhal said that the Ukrainian defense industry should integrate with the defense industry of European partner countries to form a single ecosystem.