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Russia keeps hitting Ukraine’s arms plants. Now private developers can dig them space underground—and sell or rent it to them

The FP-1 "Deep Strike" kamikaze drone at the factory.

Ukraine's Cabinet has opened the construction of underground arms production space to private investors, Prime Minister Serhii Koretskyi announced on 22 October, saying the rule applies from that day. A second decision eases imports for partner-funded weapons production.

Koretskyi said the change would add more of the space arms makers need, especially as Russian strikes intensify. On 9 December 2025, the Defense Ministry reported that more than UAH 1.5 billion (about $36 million) in budget support had let war-damaged defense firms restore operations. At the time, the ministry planned to relocate or duplicate the most critical plants, and underground complexes were under construction. The new model puts no additional burden on the state budget, Deputy Defense Minister Hanna Hvozdiar said. The bill still lands somewhere, though. Defense firms will buy, lease, or take the space for use, and companies working on state contracts are among those eligible. If they pay developers out of state-contract revenue, part of the cost could come back to the budget.

Developers build, arms makers move in

The changes to Cabinet resolution No. 1494 give private investors a simplified route to construction and permits, the ministry said. Developers can build protected facilities with their own or raised funds. Deadlines, terms of use, and the handover are set in a contract between investor and defense firm. The mechanism covers new sites as well as moving or expanding existing production. If a firm gets only part of a facility, that part must be at least 25% of the facility's total area and fit for production.

Estonian and Ukrainian soldiers fly drones together during Exercise Hedgehog 2025 in Estonia, where Ukrainian operators were credited with knocking out two battalions in a simulated engagement. Photo: vbl/OR-7 Ardi Hallismaa/ERR
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One year of Ukrainian arms exports, and industry has questions: how much army gained, where Berlin office is, who joins joint ventures

Developers must sign deals with, among others, residents of Defence City, Ukraine's special legal regime for arms makers, holders of state defense contracts, and firms the ministry designates as critical.

Tax break for partner-funded arms production

Components for weapons production that international partners pay for will enter Ukraine free of import duty and VAT, Koretskyi said. He added that customs inspection and clearance would be simplified and sharply shortened through a "single window."

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Ukraine has identified nearly 46,000 foreigners from 151 countries in Russia’s army—and says Moscow is on pace to meet its 2026 hiring plan

ukrainians capture first north korean pow military says claimed prisoner war dprk tme/ the_warhal18 zayavlenyj-polonenyj-vijskovyj-kndr-2 26 reports emerged ukrainian special forces had captured soldier fighting russia during operation kursk oblast

Ukraine holds personal data on each of the nearly 46,000 foreigners it has identified as signing with Russia’s army since 2022, Dmytro Usov, secretary of its prisoner-of-war coordination headquarters, said on 19 October. If the current pace holds, he expects this year’s contracts to reach Moscow’s plan. Meanwhile, a survey of captured foreigners gave a split answer on how many knew they were heading to war.

Usov said 41% of surveyed foreign POWs signed at enlistment offices and recruitment points, which the headquarters reads as a sign of a systematic campaign. He also said the hiring is meant to ease the social and budget burden of Russia’s own losses. Russia has long turned to foreigners to offset shortages in its regular forces. In April, Ukraine’s military intelligence (HUR) said enlistment offices had reportedly been assigned regional quotas.

A count built name by name

Usov, a brigadier general and secretary of Ukraine’s Coordination Headquarters for the Treatment of Prisoners of War, spoke at the international conference Crimea Global. He said Russia’s Defense Ministry has signed 45,959 foreigners from 151 countries. Ukraine’s records include each one’s rank, dog tag, and contract date.

The figure counts everyone who signed, not only those serving now. In April, Usov said his count left out North Korea’s regular troops, that 25–30% more recruits were likely still unidentified, and that at least 5,149 foreign recruits had died, Interfax-Ukraine reported.

This year’s contracts near the plan

Contracts have grown every year: 94 in 2022, 4,067 in 2023, 8,877 in 2024, and 16,085 in 2025. Some names surface late. At the same April event, Interfax-Ukraine reported, Usov had put 2025 at 13,997 and said the headquarters adds newly identified foreigners every month.

For 2026, Russia’s Defense Ministry planned 18,500 foreign contracts. Ukraine knows of 16,168 so far, roughly level with all of 2025. Another 668 contracts still have no year assigned. If the same dynamic holds, Usov said, the ministry will fully meet its plan and may even exceed it.

He named Indonesia, Peru, Chad, and Zimbabwe among the ten countries that drove the growth in recruits, Ukrinform reported. At the same time, he said, Ukraine’s Foreign Ministry and POW agencies have cut recruitment in some countries and stopped it in others.

What captured foreigners told Ukraine

Ukrainian forces have captured citizens of 59 countries since the full-scale invasion began. Uzbeks, Tajiks, Belarusians, and Colombians are among the largest groups.

In the headquarters’ survey of foreign POWs, nearly half said they knew they would fight Ukrainian soldiers and civilians. Another 28% said they didn’t know, 14.8% weren’t sure, and 13.8% said they were deceived. The headquarters ran the survey, and neither report gave a sample size or explained how the shares fit together. Usov said the results showed most knew where they were going. Almost 47% said they signed up for Russian citizenship.

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