The Ministry of Defence and the Ministry of Digital Transformation have launched the Brave1 competition to support innovations in military technology, particularly in artificial intelligence, according to the government portal on September 4. The program offers grants of up to ₴100 million to manufacturers, with a focus on solutions that enhance the autonomy of combat missions.
The state aims to support the development of autonomous drones, targeting systems, thermal imaging for interceptor UAVs, AI tools for neutralizing aerial bombs, and simulation platforms for testing and training autonomous combat systems. According to Prime Minister Denys Shmyhal, over 200 companies are already working on AI solutions under the Brave1 initiative, and the government is ready to invest in startups capable of securing Ukraine’s technological edge.
Additionally, the Verkhovna Rada has passed the first reading of draft laws introducing a special Defence City tax regime for defense industry enterprises. The regime will be in effect until 2036 or until Ukraine joins the EU. Instead of the current list of designated enterprises, a new Defence City Register will be established under the Ministry of Defence.
Residents of Defence City will benefit from corporate tax exemptions on reinvested profits, as well as from land, environmental, and real estate tax exemptions. Customs procedures and export control will be simplified, and the National Bank of Ukraine may implement special foreign exchange supervision rules.
