In early December, amendments to the Law of Ukraine “On State Support of Investment Projects with Significant Investments in Ukraine” entered into force.
In particular, Clause 4 of Part 1of Article 5 of the Law has been updated to provide that investments made in objects of investments more than 18 months before the date of submission of application are excluded from the calculation of the investor’s significant investments.
“Projects where investments started more than 18 months before the date of submission of application to the authorised body can be provided to the Ministry of Economy for assessment, if the investments made before this period are excluded from the calculation of significant investments. Consequently, these investments will not be included in the estimation of the maximum possible amount of state support. Thus, the amendments allow many investment projects that previously did not meet the requirements to participate in the state programme. This is especially relevant for cases where project companies had non current assets on their balance sheets before the permitted deadline. However, it is important to note that in any case the business activities of the project company must be focused exclusively on the implementation of the investment project with significant investments,” commented Alyona Sumina, Acting Head of the Legal Affairs and Regulatory Policy Department at UkraineInvest.
The adopted amendments are an important step towards improving the legislative framework for the implementation of projects involving capital investments, thus promoting a positive investment climate in Ukraine.
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