Oschadbank is increasing cooperation with private defense industry companies
Oschad News
Defense industry companies were among Oschadbank's clients even before the war began, but they were primarily represented by the state sector. Now, the vast majority of clients are private businesses. This was announced by Yuriy Katsion, Deputy Chairman of the Board responsible for corporate business, in an interview with NV. Business.
"In 2024, Oschadbank signed new contracts with defense industry companies worth over UAH 11 billion. This year, we also have numerous applications for participation in financing programs, taking into account state support programs. To date, the total volume of loan agreements we have signed with defense industry enterprises in the corporate business segment during the full-scale war exceeds UAH 17.5 billion. And the share of the defense industry in the structure of our loan portfolio as of August 1, 2025, is already 13%. For comparison, the energy sector, in which we have long held a steady leadership position, accounts for 29% of the market," Yurii Katsion stated.
According to Yuriy Katsion, the bank achieved this result by trying to “meet the request of the government and the Ministry of Defense, the request of our military to provide financing for the production of weapons.” At the same time, the deputy chairman of the board emphasized the bank's initiative in developing support for the defense-industrial complex: "We have also begun to proactively develop ways to simplify and expand access to financing for defense-industrial complex enterprises. We interacted with the Cabinet of Ministers, the Ministry of Defense, and the Ministry of Strategic Industries, offering our expertise and experience to change the situation and the regulatory framework in order to expand and multiply the possibilities for financing arms production. They government was open to our ideas and took them into account, and many of our suggestions were put into action.”
To meet the needs of defense industry enterprises, Oschadbank provides a full range of financial services in addition to lending: settlement and cash services, account opening and maintenance, contract services, documentary operations, guarantees and letters of credit, payroll projects, etc. It also offers special state support programs: preferential lending under the government program, state guarantees, portfolio guarantees, etc.
"We finance the entire range of security and defense products: from heavy armored vehicles and drones to earthmoving and evacuation equipment, components, dual-use goods, shells, and bullets. However, given the country's needs in the development of the defense and security industry, we are paying more attention to the possibility of providing loans for investment purposes, for the creation of new production facilities or the purchase of new equipment, and the launch of new lines. If a company is a powerful player in the market and has sufficient liquidity and assets, the bank is ready to participate directly in its financing," emphasizes the deputy chairman of the board of Oschadbank.
As another way to expand support for manufacturers, in 2024 Oschad organized the first consortium for defense industry enterprises with the participation of Ukrgasbank and PUMB. According to Yuriy Katsion, Oschad now has confirmed readiness to participate in such consortia from four banks.
In August 2025, Oschadbank issued bank guarantees to the Dutch government to secure advance payments to manufacturers participating in the presidential initiative “Drone Line” under direct contracts worth €837 million for four companies. The bank now has information about the readiness of other partner countries to provide Ukraine with similar support under this mechanism, as well as requests from many manufacturers in the industry interested in such cooperation.
“This is how, by initiating changes and improvements to regulatory documents, constantly working with all industry stakeholders, and expanding opportunities for manufacturers, we have achieved a leading position,” summarizes Yurii Katsion.
Read the full text of the interview at the link:
Oschad News
Oschadbank Press Center