Investing in Private Air Defense in Ukraine: How Much Business Protection Costs and Who Is Already Investing

Private air defense is emerging as a new area of investment for Ukrainian businesses seeking to protect their facilities and critical infrastructure. Nearly 100 companies have already joined the government program, while the cost of an active air defense system for a single site may start at UAH 14 million. New government regulations open the door for companies to provide air defense services to other businesses on a commercial basis.

Russian strikes on industrial facilities, energy assets, logistics centers, and other critical infrastructure are forcing Ukrainian businesses to reconsider their risk management strategies. While security investments previously focused primarily on physical security, video surveillance, fire protection, and backup power supply, companies began adding their own air defense capabilities to this list in 2026.

In November 2025, the Ukrainian government approved an experimental framework for establishing air defense units at enterprises. Throughout 2026, the initiative moved from regulatory decisions to practical implementation, with private companies forming air defense teams, purchasing equipment, training personnel, and participating in the protection of Ukrainian airspace.

According to the Ministry of Defense, nearly 100 enterprises had joined the project as of October 14, 2026. Approximately 50 air defense units had been established, while units operated by six companies were already carrying out combat missions. Collectively, they had destroyed more than 60 aerial targets.

The next stage of market development began on November 4, 2026, when the Cabinet of Ministers expanded the scope of private air defense operations. In particular, companies were permitted to protect facilities belonging to other businesses under contractual agreements and to transfer air defense equipment between authorized project participants, subject to military command approval.

As a result, Ukraine is gradually developing not only a framework for companies to protect their own facilities but also a potentially new segment of the security services market.

Private Air Defense in Ukraine: From Experiment to Operational System

The legal foundation for establishing private air defense units was Cabinet of Ministers Resolution No. 1506 of November 19, 2025.

Its main objective is to mobilize resources from enterprises of various ownership structures to strengthen Ukraine's national air defense capabilities. Companies may finance the necessary equipment, establish dedicated units staffed by their employees, and organize personnel training.

However, private air defense does not mean the emergence of independent armed formations. These units operate within Ukraine's unified air defense system under the command of the relevant Air Commands of the Ukrainian Air Force.

Military command is responsible for approving their operating procedures, assigning missions, and overseeing the deployment of air defense assets.

Development of Private Air Defense in 2026

Sources: Ministry of Defense data and industry media reports. The number of authorized enterprises does not equal the number of units already conducting combat missions.

The growing number of participants demonstrates increasing business interest in additional air defense capabilities. However, establishing a fully operational air defense unit requires time, specialized training, and substantial investment.

Who Is Already Investing in Private Air Defense: Examples of Ukrainian Companies

NOVA (Nova Poshta): Its Own Air Defense System Is Already Shooting Down Russian Drones

One of the most prominent examples of private air defense implementation is NOVA, the logistics group that includes Nova Poshta.

On October 27, 2026, at the Kyiv International Economic Forum, the group's co-owner, Viacheslav Klymov, announced that the company had implemented its own air defense project and had already confirmed cases of successfully intercepting Russian attack drones.

However, the company did not publicly disclose the number of drones intercepted or the amount invested.

For a major logistics operator, air defense has particular economic significance. Damage to a sorting terminal or logistics center can result not only in the loss of buildings and equipment but also in operational shutdowns, damage to customers' goods, supply chain disruptions, and additional recovery costs.

Investments in proprietary air defense capabilities can therefore be viewed as part of a business continuity strategy and a means of protecting critical operational assets.

General Cherry: From Drone Manufacturing to Comprehensive Air Defense Services

Another example is the Ukrainian DefenceTech company General Cherry, which specializes in manufacturing unmanned aerial vehicles, including interceptor drones.

In July 2026, the company announced that it had received authorization to establish private air defense capabilities to protect privately owned facilities and critical infrastructure.

Its business model includes not only equipment supply but also the establishment of mobile teams staffed by trained operators, the deployment of proprietary unmanned technologies, and personnel training for other enterprises.

The company is also developing its training operations: the General Cherry Academy prepares operators for private air defense units.

This approach demonstrates the potential for vertical integration in the emerging market, covering everything from the development and manufacturing of interception systems to personnel training and the organization of comprehensive protection services.

However, publicly available information about the company's authorization and unit training does not confirm the specific number of combat deployments or targets intercepted by the company.

SHERIFF: Private Air Defense as a New Segment of the Security Industry

Major private security companies also view air defense as a promising extension of the traditional security services market.

In October 2026, Dmytro Riabyi, a representative of the SHERIFF security holding, discussed the economics of such projects and approaches to estimating their costs in an interview with Interfax-Ukraine.

According to his estimates, the minimum investment required for private air defense may be approximately UAH 4 million, while active protection systems for a single facility may cost UAH 14 million or more.

For the private security industry, air defense creates opportunities to develop a new category of services combining physical security, threat detection technologies, specialized equipment, trained personnel, and coordination with the military.

However, such services may only be provided within the powers and approval procedures established by the government.

How Much Does Private Air Defense Cost for a Business?

Cost is one of the main considerations for companies evaluating investments in their own air defense capabilities.

There is no universal price. The budget depends on the characteristics of the facility, the approved protection model, equipment configuration, personnel requirements, training needs, and ongoing maintenance.

Based on estimates provided by a SHERIFF representative in an interview with Interfax-Ukraine, the following indicative investment levels can be identified:

These figures are indicative estimates provided by an industry representative, not officially approved tariffs. The effectiveness of certain systems, which the representative claimed exceeds 75%, has not been independently verified as a universally applicable performance indicator.

In addition to the initial equipment purchase, companies must consider ongoing operating expenses.

These may include:

• Personnel salaries and training;

• Equipment maintenance and repairs;

• Consumables and replacement of expended interception equipment;

• Transportation, power supply, and communications infrastructure;

• Legal support, recordkeeping, special permits, and compliance with safety requirements;

• Upgrades to technical solutions in response to evolving aerial threats.

In comments to Mind, the CEO of ARMADA also estimated that equipping a single air defense unit could cost several million hryvnias, emphasizing the need to account for equipment packages, communications, transport, and other components.

Establishing private air defense capabilities should therefore be treated as a full-scale investment project involving both initial capital expenditures and recurring operating costs.

Investing in Private Air Defense: How to Assess Economic Viability

Unlike traditional investment projects, a company's own air defense system does not generate direct revenue when used exclusively to protect its facilities.

Its economic value lies primarily in potentially reducing losses caused by aerial attacks.

For a large industrial enterprise, energy facility, or logistics complex, the consequences of a single successful strike may significantly exceed the initial cost of a protection system.

Direct losses may include damage to buildings, production equipment, inventories, and transportation infrastructure.

Indirect losses may include forced production shutdowns, contract disruptions, lost revenue, delayed deliveries, operational recovery costs, and deteriorating customer relationships.

Several factors should be considered in an investment analysis:

1. Value of assets at risk. How much would it cost to restore fixed assets, equipment, and infrastructure following potential damage?

2. Economic losses from downtime. How much EBITDA or operating cash flow could the enterprise lose due to interrupted operations?

3. Probability and scale of potential losses. What risk scenarios are relevant to a particular facility, and how significantly could they affect its financial performance?

4. Cost of protective measures. What capital expenditures, annual operating expenses, maintenance costs, and potential equipment upgrades would be required?

5. Realistic risk reduction. What benefits can reasonably be expected from additional protective measures without assuming guaranteed interception of aerial targets?

In simplified terms, economic viability can be assessed by comparing expected losses under scenarios with and without protection, while accounting for the system's total cost of ownership.

For example, if a hypothetical enterprise owns production assets worth UAH 1 billion, and a single major incident could cause losses amounting to hundreds of millions of hryvnias, investing tens of millions of hryvnias in additional security measures may be economically justified.

However, simply comparing asset values with the cost of air defense does not prove the viability of a particular solution. An individual risk assessment, technical evaluation, military command approval, and comparison of available protective measures are necessary.

For major industrial and infrastructure facilities, protection against aerial attacks may gradually become part of broader investment strategies alongside insurance, production diversification, backup power supply, and business continuity planning.

A New Stage in Market Development: Private Air Defense as a Commercial Service

The most important development for potential investors was the government's decision of November 4, 2026, which expanded the capabilities of authorized enterprises.

The key changes include:

• Enterprises participating in the project may provide protection services for facilities owned by other companies under contractual agreements.

• Air defense equipment may be transferred between authorized enterprises with the approval of the Ukrainian Air Force.

• Eligibility criteria now include Defence City residency status and/or designation as a critically important enterprise by the Ministry of Defense.

• Manned aircraft may be deployed as part of air defense units.

• The legal framework for using interceptor drones has been expanded, including provisions concerning warheads and electric detonators.

• The minimum age for air defense unit personnel has been reduced from 21 to 18.

The first provision is particularly important for the development of a new market.

In effect, the government is creating the legal prerequisites for an Air Defense as a Service business model.

This means that an enterprise lacking the resources or capacity to establish its own air defense unit may potentially be able to engage an authorized operator under a commercial contract.

For specialized companies, this model creates opportunities to generate revenue from comprehensive security services. For manufacturing and logistics companies, it offers an alternative to establishing and continuously maintaining their own dedicated units.

However, commercial agreements do not replace government permits, military approvals, or requirements relating to personnel and equipment. The specific mechanisms for implementing the new rules must be assessed based on the official text of the regulatory amendments once they enter into force.

Where Investment Could Flow in the Private Air Defense Market

The emergence of a new market segment creates potential demand not only for ready-made interception systems but also for a broader ecosystem of technological solutions and services.

Equipment manufacturing. Developers and manufacturers of detection systems, monitoring technologies, counter-drone equipment, automated systems, and specialized electronics may gain an additional sales channel.

Systems integration. Enterprises need comprehensive, legally compliant solutions rather than individual pieces of equipment. This creates opportunities for companies capable of integrating different technologies into a unified system.

Personnel training. As the number of air defense units increases, demand for trained and certified specialists, instructors, and technical personnel is likely to grow.

Technical maintenance. Equipment servicing, repairs, modernization, and component supply could become sources of recurring revenue.

Integrated security operators. Once the regulatory framework for contractual protection of third-party facilities is established, a segment of specialized operators providing ongoing services to enterprises may develop.

Software and analytics. Secure information systems, monitoring technologies, data processing, and equipment management software will become increasingly important. Their use must comply with military command requirements and information security standards.

From an investment perspective, the most attractive business models may be those that combine equipment with services, long-term contracts, and recurring revenue streams.

However, the market remains highly regulated, and project implementation depends not only on commercial demand but also on government approvals and defense requirements.

Legal Considerations: How a Company Can Establish Its Own Air Defense Unit

Despite emerging market opportunities, establishing a private air defense unit remains a process governed by specific legal requirements.

The legal framework is based on Cabinet of Ministers Resolution No. 1506 and subsequent amendments.

As Petro Bilyk, a partner in the Technology and Investment Practice at Juscutum, explained in an article for Forbes Ukraine, it is essential for companies to obtain the necessary approvals before purchasing specialized equipment.

Who Can Establish a Private Air Defense Unit?

Legal entities with various ownership structures may participate in the experimental project, provided they meet the established criteria.

A special participation procedure applies to critical infrastructure operators.

For other enterprises, eligibility depends on permits, licenses, declarations, or specific government-designated statuses required by law.

Following the government's decision of November 4, 2026, the eligibility criteria are being expanded, particularly to include certain categories of defense industry enterprises.

In each case, companies must verify the current version of the relevant regulation and ensure that they meet the applicable requirements.

Key Stages of Establishing Private Air Defense Capabilities

Stage 1 — Organizational preparation. The enterprise identifies responsible personnel, establishes a budget, determines financing sources, assesses staffing capabilities, and adopts the necessary internal decisions.

Stage 2 — Coordination with the Ministry of Defense. Depending on the company's status, it completes the required notification or application procedure and submits the necessary documents.

Stage 3 — Joint decision with the Air Command. The relevant Air Command determines the approved operating model, required equipment, staffing arrangements, and coordination procedures with the military.

Stage 4 — Equipment procurement and training. Once the necessary approvals have been obtained, the company organizes the purchase of authorized equipment, establishes the unit, and trains its personnel.

Stage 5 — Readiness confirmation and integration. The unit completes the required authorization procedures and is integrated into the unified air defense command and control system.

Stage 6 — Operations and reporting. The unit performs its assigned missions under military command supervision while complying with established recordkeeping and reporting requirements.

Companies must also consider regulations governing the import, transportation, and storage of certain types of equipment and materials, supplier liability, warranties, insurance, and software licensing rights.

The duration of the experimental project requires particular attention. It is limited to the period of martial law but may not exceed two years from the date the resolution enters into force unless the regulatory framework is amended.

For long-term investments, this creates a need to account for regulatory risks and potential changes to the legal regime.

Which Industries Have the Greatest Interest in Private Air Defense?

Potential demand is concentrated primarily in sectors where aerial attacks can cause substantial losses or disrupt critical operations.

Energy. Power plants, distributed generation facilities, and other energy infrastructure assets whose operations are essential to industry and the population.

Logistics. Major sorting centers, warehouse complexes, transportation hubs, and other facilities whose shutdowns can disrupt supply chains.

Manufacturing. Enterprises with expensive technological equipment, continuous production processes, and significant finished goods inventories.

Agricultural processing. Large grain elevators, oil extraction plants, food processing enterprises, and other facilities where potential losses may involve not only equipment but also substantial commodity inventories.

Defense industry. Manufacturers of critical products for which additional protection of production facilities may have strategic importance.

Telecommunications and infrastructure. Companies responsible for maintaining continuous communications, water supply, and other essential public services.

For these sectors, investments in private air defense may be considered one of the tools available to mitigate war-related risks, although the viability of individual projects will depend on regulatory, technical, and economic factors.

Prospects for Private Air Defense: A New Investment Market in Ukraine?

The development of private air defense capabilities may have several economic implications.

First, increased spending on protecting industrial and infrastructure facilities will generate additional demand for Ukrainian defense technologies, manufacturing capacity, and engineering expertise.

Second, the ability to provide services to third-party enterprises creates opportunities for specialized operators operating at the intersection of the private security industry and DefenceTech.

Third, private air defense could potentially improve the resilience of individual manufacturing operations, reduce the risk of prolonged downtime, and help preserve capital in the real economy.

Fourth, market development may stimulate demand for professional training, engineering services, repairs, and upgrades of specialized equipment.

However, the potential size of this market remains difficult to estimate. Comprehensive public data on total corporate investment, average budgets for operational systems, the number of commercial contracts, and the actual effectiveness of individual solutions are not yet available.

Furthermore, the primary purpose of private air defense remains security, and its operations are governed by military priorities rather than purely commercial considerations.

For investors, this means that the segment's prospects should be assessed in light of regulatory requirements, technological risks, effective market demand, and the feasibility of building a sustainable business model.

Ultimately, private air defense in Ukraine is gradually evolving from an experimental initiative into a new segment of the security industry. For some enterprises, it represents an investment in protecting existing assets; for others, it creates opportunities to develop technology manufacturing, systems integration, and specialized services.

Although the economics of this emerging market are still taking shape, it is already clear that additional protection of critical assets is becoming an important factor in strengthening the investment resilience of Ukrainian businesses.