Strategic status for the defense industry: new criteria and bonuses

In October 2025, the Ministry of Defense of Ukraine approved new criteria under which enterprises in the defense-industrial complex (DIC), as well as in the aviation and space sectors, can obtain the status of being strategically important for the national economy and defense. This status gives businesses, in addition to prestige, the ability to receive state support, the right to simplified employee deferral during mobilization, and gives the state a transparent list of key manufacturers for targeted funding, strategic planning, procurement, and sector development.

Who is recognized as strategically important and why
With the onset of the full-scale war, Ukraine’s economic and defense policy became maximally oriented toward priority sectors. Recognition as a strategic enterprise in the DIC or related fields is not simply a formal label:

it means a “green corridor” for government orders and contracts;

more favorable state policies on financial support, participation in development and export programs;

much greater stability and protection for employees from mass layoffs or conscription.

Main criteria for obtaining the status
As defined in the Ministry of Defense orders and clarifications:

DIC, aviation, and space enterprises which fulfill government contracts for the manufacture, modernization, repair, or disposal of weapons and equipment for the Armed Forces and other units, are automatically included in the list.

This status is also available to those who:

Receive government financial support (grants, subsidies, etc.) for defense innovation;

Regulate, coordinate, or manage state-owned assets in the sector;

Are authorized to participate in the selection/implementation of government contracts or are listed in special registries of tender participants;

Implement state targeted programs in aviation/space, defense sector development/reform, innovation, and production expansion.

For other enterprises — if activity does not fully meet the priority criteria — “important” status is possible only if at least three out of six additional requirements are met.

Additional details
Assignment or confirmation of status occurs after the Ministry of Defense working group’s analysis of documents and recommendations involving government representatives. Existing status is automatically extended until expiration—no need for repeat confirmation. There is also the possibility to include private producers and IT companies working in dual-use or similar technologies, provided there is a significant contribution to the country’s defense capability.

Business advantages and implications

Employee reservation/deferral:
Strategic DICs that meet the Ministry of Defense criteria may reserve up to 100% of conscripted staff during martial law, preventing paralysis of critical production or R&D.

Priority funding and government orders:
Such enterprises have an advantage in the distribution of budget funds, targeted subsidies, technology transfer, and cluster participation.

Expansion of international cooperation:
Official recognition boosts “investment attractiveness” to partners, creditors, suppliers of Western components or defense software.

Simplified regulatory procedures:
Strategic enterprises face less stringent requirements for international contracts and urgent procurements.

Risks, challenges, and criticism
The system is strongly oriented toward producers of advanced weaponry, while IT, creative, and related companies face a more complex path to recognition. Potential for competition over status generates industry conflicts, and rapid criteria updates require document flexibility and fast adaptation to new regulations.

Conclusions
The Ministry of Defense criteria adopted in October 2025 establish a transparent and clear procedure for recognizing strategically important enterprises in the context of war and postwar recovery. Integrating defense policy with real industry and innovation creates conditions for a resilient workforce and production capacity. Business leaders seeking this status are advised to closely study the new criteria, consult with industry experts, and be ready for flexible planning under a dynamic regulatory landscape.

Svitlana Krutorohova — attorney at WINNER Law Firm.
If you have any questions or issues regarding preparing documents for obtaining or extending the status of a strategic enterprise, proving compliance with specific criteria, appealing a Ministry of Defense refusal, participating in government contracts, or obtaining state support — contact the experts at WINNER Law Firm for legal consultations. Professional support will help you navigate legislative requirements, protect your business interests, and timely take advantage of new opportunities for growth during wartime and postwar periods.