Ukraine is allocating UAH 45 billion to support the development of Ukrainian industry

Ukraine is allocating UAH 45 billion to support the development of Ukrainian industry

Support will be provided in three areas 

  • real sector investment through access to cheap money, industrial infrastructure and incentives
  • development of Ukrainian production by stimulating demand for Ukrainian goods from the state, private sector and citizens.
  • increasing non-resource exports through market access and export finance

At the invitation of Ihor Marchuk, Chairman of the Subcommittee on State-Business Interaction and Investment of the Verkhovna Rada Committee on Economic Development, who organised the presentation of the Made in Ukraine policy in Kamianets-Podilskyi, Oleksandr Melnychenko, Acting Executive Director of UkraineInvest, spoke about state incentives under the Law “On State Support for Investment Projects with Significant Investments in Ukraine”. 

During the presentation of the “Made in Ukraine” policy in Kamianets-Podilskyi, for the first time in Ukraine at the sub-regional level, UkraineInvest, together with colleagues from the Committee for Economic Development, the Ministry of Economy of Ukraine, the Export Credit Agency (ECA) and the Business Ombudsman Council, together with the Kamianets-Podilskyi City Council, presented new opportunities for state support and assistance to entrepreneurs and businesses in Kamianets-Podilskyi.

Oleksandr Melnychenko mentioned the following possibilities of state support for investors

  • up to 30% of CAPEX; 
  • benefits in the form of exemption from income tax during the implementation and operation of the project, from VAT and customs duties during customs clearance of new equipment required for the project 
  • compensation for the cost of constructing engineering and transport infrastructure, as well as the cost of connection to engineering and transport networks;
  • exemption from compensation for forest production losses;
  • reduced rates of payment for the land plot provided for the implementation of an investment project with significant investments in an amount lower than the amount determined by the local government, etc. 

Oleksandr Melnychenko also presented to the business community the Guide for Investors with Significant Investments, a guide for entrepreneurs who are ready to implement investment projects in Ukraine worth EUR 12 million or more. The guide contains information on the step-by-step algorithm of actions for investors and other participants in the investment process.

“The state has created equal incentives for domestic and foreign investors. UkraineInvest’s portfolio includes a number of investment projects aimed at the Ukrainian economy. We are making sure that reconstruction begins with attracting private investment,” said Oleksandr Melnychenko.

The participants of the event were also informed that the Government of Ukraine has earmarked UAH 1 billion in the state budget for 2024 to stimulate the creation and development of industrial parks. Industrial parks are to be developed as key centres for the industrialisation of the economy, attracting investment and creating new jobs. 

“The legislation provides for a number of economic incentives for participants in industrial parks, including exemption from income tax for 10 years for a certain list of activities, provided that funds not paid to the budget are reinvested in the enterprise; exemption from import VAT and customs duties on equipment according to the list of UKTZED codes, provided that such equipment is used by the participant exclusively on the territory of the industrial park without the right to lease and sell,” said Deputy Minister of Economy of Ukraine Vitaliy Kindrativ. 

“Made in Ukraine” is a comprehensive programme aimed at supporting Ukrainian producers and strengthening the country’s economy. 

“It covers not only retail goods for household consumption, but also other areas: priority access to public procurement for Ukrainian producers, programmes to stimulate demand for Ukrainian goods, cheap loans and grants for investment and production expansion, stimulation of investment in the real sector and modernisation, and development of non-resource exports. Thanks to the implementation of the whole range of these measures, the Ministry of Economy expects to receive 1% of the 4.6% of the projected total GDP growth in 2024” said Igor Marchuk, Chairman of the Subcommittee on State-Business Interaction and Investment of the Verkhovna Rada Committee on Economic Development, member of the Supervisory Board of UkraineInvest.

The event was also attended by Roman Vashchuk, Business Ombudsman, Serhiy Tyurin, First Deputy Head of the Khmelnytsky Regional State Administration, Mykhailo Positko, Mayor of Kamianets-Podilskyi, Ruslan Gashev, Chairman of the Board of the Export Credit Agency, entrepreneurs, craftsmen, producers of handicrafts and representatives of NGOs from the Khmelnytsky region.

Follow us on Facebook, Twitter, LinkedIn, or YouTube.