Facts

Cabinet expands list of defense companies eligible to lease state property without auction – Defense Ministry

Cabinet expands list of defense companies eligible to lease state property without auction – Defense Ministry

At the proposal of the Ministry of Defense, the Cabinet of Ministers has expanded the list of defense companies eligible to lease state and municipal property without an auction, including manufacturers of unmanned systems, electronic warfare equipment and passive countermeasures against technical reconnaissance.

Under the government decision, companies may be granted the right to lease property without an auction if they meet at least one of four specified criteria.

"Defense companies with Defence City resident status will be able to lease state and municipal property without an auction under simplified conditions," the ministry said on Monday.

The criteria include critical enterprise status, inclusion in the register of state contract performers, compliance with specified production criteria, or Defence City resident status.

In addition, the option of leasing without an auction applies not only to state property but also to municipal property. Local authorities are recommended to set the annual rent at 8% of the appraised value of the property.

"We are helping defense industry companies scale up production," the Defense Ministry said.

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