Defence Sector and Defence City

Legal support for business in the defence sector — from Defence City resident status and export permits to deals involving assets and technologies and protection of business against criminal risks

What is legal support for business in the defence sector?

The defence industry is a key driver of Ukraine’s economy: according to the NBU, state expenditure on the defence-industrial complex adds around 1.4 percentage points to GDP (Inflation Report, July 2026). At the same time, it is the most heavily regulated sector: the production of arms and dual-use goods, the special legal regime of Defence City, controlled exports, defence procurement, and the protection of technologies and sensitive information — each area has its own rules and its own risks.

Legal support in this field is comprehensive assistance at every stage: from choosing the business structure and obtaining Defence City resident status to export contracts, deals involving assets and the protection of interests in inspections and criminal proceedings. GOLAW works with Ukrainian manufacturers, defence tech companies, foreign investors and suppliers to the sector — from technology startups to the largest manufacturers.

What we do

  • Support obtaining and maintaining resident status under the Defence City legal regime
  • Structure investment and corporate models in the field of defence technologies
  • Provide regulatory support for the production of arms, defence technologies and dual-use goods
  • Obtain permits for the controlled export of arms and defence technologies, and structure export contracts
  • Advise on export control, sanctions screening of counterparties and supply chains
  • Support the acquisition and sale of companies and technologies in the defence industry, joint ventures, and legal due diligence of deal targets
  • Protect intellectual property rights, support R&D projects, technology transfer and the protection of confidential and sensitive information
  • Represent clients in defence and public procurement, under contracts with state customers
  • Protect business in inspections, searches and criminal proceedings related to activities in the defence industry — together with GOLAW’s criminal practice
  • Support employee reservation and mobilisation compliance — together with the martial law practice

Step-by-step guide «What legal support in the defence sector includes»

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1
Defence City resident status
Analysis of compliance with the regime's criteria, preparation of documents, support in obtaining the status and maintaining compliance with the requirements. The regime has been in force since 5 January 2026; as of July 2026, 45 companies hold resident status
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2
Structuring business and investment
Choosing the corporate model, structuring investor entry, and building a group of companies with regard to the regulatory requirements of the defence sector. Preparation for the future screening of foreign direct investment (draft law No. 14062) — in detail on the «Ukraine Market Entry» page
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3
Regulatory support for production
Permit, licensing and regulatory matters concerning the production of arms, defence technologies and dual-use goods
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4
Controlled arms exports
Support in obtaining export permits under the controlled export mechanism for partner states, structuring contracts, protecting intellectual property upon the transfer of products (without alienation of rights, consent to re-export), and support with royalties on the export of products based on Ukrainian technologies
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5
Export control and sanctions compliance
Advice on transactions involving military and dual-use goods, sanctions screening of counterparties, investors and supply chains, and building internal compliance procedures
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6
Deals involving assets and technologies
Acquisition and sale of companies and technologies in the defence industry, joint ventures, and legal due diligence of deal targets
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7
Intellectual property, R&D and sensitive information
Protection of rights to developments, structuring of R&D projects, technology transfer agreements, and confidentiality and sensitive-information protection regimes
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8
Contracts and procurement
Participation in defence procurement and restricted-access procurement, contracts with state customers and international partners. Public procurement and production localisation — in detail on the «Ukraine Reconstruction» page
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9
Financing and risk insurance
The legal side of raising financing and grants for defence projects; insurance of war and political risks — in detail on the «Ukraine Reconstruction» page
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10
Protection of business and personnel
Support in inspections and searches, defence in criminal proceedings related to state contracts and sector activities (GOLAW's criminal practice); employee reservation and mobilisation compliance (martial law practice); ongoing legal advice for companies in the sector

Key lawyers

Dr. Valentyn Gvozdiy
  • Founding Partner at GOLAW, Attorney at law, PhD
Oleksandr Melnyk
  • Partner, Head of Corporate Law and M&A practice, Attorney at law
Sergii Oberkovych
  • Founding Partner and Managing Partner at GOLAW, Attorney at Law
Viktoriia Bublichenko
  • Partner, Head of Tax, Restructuring, Claims and Recoveries practice, Attorney at law

We are trusted

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Frequently asked questions

  • Who can obtain Defence City resident status?

    Companies in the field of defence technologies that meet the criteria set by law. As of July 2026, there are 45 residents in the regime. We analyse whether your business meets the criteria and support the procedure for obtaining the status

  • What tax benefits does Defence City resident status provide?

    The regime has been in force since 5 January 2026 and provides, among other things, an exemption from corporate profit tax subject to the reinvestment of funds, as well as from land and environmental taxes. We assess the effect of the regime for a specific business model before the documents are filed

  • Defence City or Diia City — which should a defence tech company choose?

    These are complementary regimes: the choice depends on the revenue structure, the product and the model of working with the team. We compare the tax and regulatory implications of both regimes for your business and recommend the optimal configuration. For details on the regime for the IT business — on the «360° Support for Diia City Residents» page

  • Is it legal to export arms from Ukraine?

    Yes. Since 2026, there has been a mechanism for the controlled export of arms and defence technologies to partner states: export permits, review of applications within set deadlines, and retention of intellectual property rights by the Ukrainian manufacturer. We support the full cycle: from application to contract performance

  • Does Ukraine screen foreign investment in defence companies?

    A general mechanism for screening foreign direct investment is currently at the draft law stage (No. 14062). At the same time, related procedures already apply today — AMCU merger control, sanctions restrictions, and special rules in strategic sectors. We structure deals with regard to both the current requirements and the future screening regime

  • Can defence enterprises reserve employees?

    Yes, under the established procedure for enterprises that meet the defined criteria. Reservation, military registration and mobilisation compliance are handled by GOLAW’s martial law practice — see the relevant service pages

  • Does GOLAW work with foreign investors in the defence sector?

    Yes. We structure the entry of foreign investors, the creation of joint ventures with Ukrainian manufacturers, and support compliance and investment protection. General questions of entering the Ukrainian market — on the «Ukraine Market Entry» page

Get in touch

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