The Verkhovna Rada has adopted in the first reading the draft law on Amendments to the Law of Ukraine “On State Support for Investment Projects with Significant Investments in Ukraine”.
“As a result of the amendments, more companies will have access to state support for investors, up to 30% of the amount of the investment project,” said Sergiy Tsivkach, Executive Director of UkraineInvest, welcoming the Verhovna Rada move.
According to him, the amendments to the current law will expand opportunities for the development of not only large, but also medium and small businesses in Ukraine.
In particular, the bill proposes:
– Reduction of the minimum required amount of significant investments (from EUR 20 mln to EUR 12 mln) and the number of newly-created jobs (from 80 to 50 jobs) during the project implementation period;
– Expanding the list of eligible areas for project implementation in the IT industry, production of energy-efficient construction materials, etc.;
– To include investments made by the investor within 12 months period prior to the date of submitting the application to the amount of significant investments (up to 25% of the total amount of significant investments);
– Establishment of time period for the refinement of documents and the special investment agreement submitted by the investor in spite of returning with the negative evaluation (up to two months);
– Elimination of the need to create an additional legal entity (same legal entity can be an applicant, as well as an investor with significant investments);
– Inclusion not only of capital investments, but also of fees for connecting to engineering grids (electricity, gas, etc.);
– Introduction of negotiations procedure between the applicant and the Ministry of Economy related to discussion of the provisions of the special investment agreement, etc.
Proposals developed by UkraineInvest following consultations with leading business organisations and potential investors formed the basis of the government’s draft law.
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