9 August 2022, the Cabinet of Ministers adopted amendments to the resolutions of the Cabinet of Ministers regarding investment projects with significant investments, which are aimed at simplifying the requirements for feasibility study of the project, expanding access to collective investment institutions and public companies.
The amendments were elaborated by the Ministry of Economy of Ukraine in cooperation with UkraineInvest, which supports investors throughout the process of preparation and implementation of investment projects.
The amendments made to the Resolution of the Cabinet of Ministers No. 515 as of 19 May 2021, Resolution of the Cabinet of Ministers No. 648 as of 23 June 2021, Resolution of the Cabinet of Ministers No. 819 as of 28 July 2021 provide for, in particular:
1) expanding the possibility of attracting financing from any MFIs Ukraine is a member of (currently it is possible to attract financing only from the International Finance Corporation, European Bank for Reconstruction and Development, European Investment Bank);
2) providing the opportunity to implement projects also to collective investment institutions (the criterion of net investment cash flow is applied to them instead of the criterion of net operating cash flow, which cannot be applied to collective investment institutions);
3) providing the opportunity to implement projects also to public companies listed in the foreign stock exchanges, the list of which will be approved by the Ministry of Economy (only the requirement to have the full financing for the investment project applies to them);
4) clarification of the provision regarding liquid assets to assure unambiguous interpretation by the applicants (it is clarified that liquid assets are considered to be cash and cash equivalents, short term investments, accounts receivable);
5) simplification and clarification of some provisions of the project feasibility study regarding assessment of the technical feasibility of the project and description of technical solutions, analysis of social, economic, legal, and financial aspects of the project in view of their vagueness and lack of certainty;
6) reduction the evaluation period for an investment project to 45 calendar days if the applicant receives financing from an MFI or a governmental financial organization, since while receiving financing from such organizations the project undergoes a long and detailed evaluation (the general period is 60 calendar days for other investment projects).
The specified amendments to the Resolution of the Cabinet of Ministers dated 19.05.2021 No. 515, Resolution of the Cabinet of Ministers dated 23.06.2021 No. 648, Resolution of the Cabinet of Ministers dated 28.07.2021 No. 819 will contribute to attracting a larger range of investment projects to the system of state support, which will positively affect the investment image of Ukraine.
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