They contribute to a long-term approach to reconstruction, addressing key issues, rebuilding communities and promoting sustainable development.
This was emphasised by Viktoria Volovenko, Head of Analytics at UkraineInvest, in her speech at the 6th National SME Forum “SME Development 2023: Opportunities, Resilience and Recovery”. She presented the joint work of UkraineInvest and UNDP on innovative investments for Ukraine’s economic recovery.
“Our research shows the potential of innovative investment as a catalyst for sustainable development and growth. We have analysed the impact of the current economic environment on micro, small and medium enterprises, which are the backbone of the Ukrainian economy, and identified an urgent need to attract investments that will not only provide short-term support, but also promote long-term innovative development,” said Viktoria Volovenko.
Victoria also spoke about special investment incentives aimed at promoting the growth and sustainable development of small and medium-sized enterprises, including innovations in legislation to support investment projects with significant investments in Ukraine:
– the updated legislation introduces new state support measures, including compensation for costs associated with the construction of relevant infrastructure;
– the investment threshold has been reduced from EUR 20 mln to EUR 12 mln;
– up to 30% of the investment may be made 18 months prior to the conclusion of a special investment agreement;
– two additional sectors have been added to the legislation: electronic communications and biogas and biomethane production.
In addition, the Law of Ukraine “On State Support of Investment Projects with Significant Investments in Ukraine” continues to provide a number of benefits:
– companies covered by this law receive a five-year exemption from corporate income tax, which reduces the tax burden in the initial stages of project implementation;
– the law extends VAT exemption to imports of new equipment and components, reducing financial barriers;
– state and municipal land can be leased without auction, which will facilitate land acquisition;
– the law provides for exemption from land tax or reduces the rate of land tax, which provides additional financial relief.
The event was held within the framework of the Memorandum of Understanding between the Ukrainian Chamber of Commerce and Industry (UCCI) and the United Nations Development Programme (UNDP) in Ukraine and with the support of the project “Strengthening Member Business Associations of Micro, Small and Medium Enterprises in Ukraine”, implemented by UNDP Ukraine in cooperation with the Ministry of Economy of Ukraine and with the support of Switzerland.
Follow us on Facebook, Twitter, LinkedIn, or YouTube.
