20% of Oschadbank’s loan portfolio is dedicated to supporting frontline territories — it contributes to the country’s defence capabilities

On the sidelines of the Ukraine Recovery Conference (URC 2026) in Gdańsk, the Defence Day international forum dedicated to the development of the defence industry, modern military technologies and international cooperation took place. The event was organised by the U.S.-Ukraine Business Council (USUBC) and brought together Ukrainian and international defence manufacturers, representatives of technology companies, financial sector and international partners, who discussed scaling up production and financing mechanisms for the defence sector.

During the Defence Industrial Base panel discussion, Yurii Katsion, Chairman of the Management Board of Oschadbank, emphasised that the resilience of the defence industry is impossible without an effective financial system, and that supporting the economy of frontline territories is an integral part of the state's defence capabilities.

"It is absolutely natural that Oschadbank holds the largest share among the institutions financing the defence sector. We hold a 14% share of the economy lending market, and this is precisely what enables us to be a leader in financing the defence industry as well. We understand the risks, but we also manage them: around 20% of our loan portfolio consists of businesses operating directly in frontline territories. For over four and a half years of full-scale war, we have accumulated unique experience, which we are ready to share with foreign partners to organise external financing for Ukrainian weapons," said Yurii Katsion.

According to the bank's CEO, the experience of financing the defence industry, which has been gained over the years of full-scale war, can be summarised in five key principles.

The first one is the concentration of efforts by the state, the regulator and the banking system on supporting the defence industrial complex. The second one is the creation of practical financial instruments that meet the real needs of manufacturers, in particular grant programmes, insurance against military risks and other support mechanisms. The third principle is about ensuring access to financing defence start-ups, which are increasingly becoming a source of technological innovation. The fourth one is the development of banking consortia, which allow for the diversification of military risks and the implementation of large-scale projects. The fifth principle is the deepening of international cooperation, involving the governments of other states, international financial organisations and mechanisms for co-financing defence programmes.

Yurii Katsion described the structure of the loan portfolio in detail: around 20% is accounted for by enterprises operating in close proximity to the front line. Maintaining existing business operations in these regions is a direct contribution to the country's defence capabilities: it guarantees jobs, supports the livelihoods of communities, provides direct assistance to the armed forces and lays the foundation for future recovery.

"It is a war, and we must be ready to change our tactics and approaches on a daily basis in order to prevail. The financial system must respond to daily challenges with the same clarity and speed. This readiness to constantly adapt and support the defence sector is already embedded in Oschadbank's strategic programme," concluded Mr Katsion.

Oschadbank's CEO also confirmed the bank's willingness to continue acting as a financial partner to international governments and organisations in implementing programmes to support the Ukrainian defence industry. The examples of such cooperation include the current agreement with the government of a European country as part of the presidential 'Drone Line' programme.