Thus, the Cabinet of Ministers has approved the procedure for compensation of the cost of engineering and transport infrastructure built by an applicant/investor with significant investments and compensation of the costs of connection to engineering and transmission networks necessary for the project implementation. This is the last regulatory act required to launch investor support. The decision was approved at a Government meeting on 15 March.
"Attracting investment in the economy is a key condition for the country's reconstruction and development. Today we have adopted the last regulatory document necessary to launch the mechanism of state support for projects with significant investment. Investors who are willing to implement projects in Ukraine worth EUR 12 million or more will receive maximum assistance and support from us in the form of support, tax and customs benefits, reimbursement of the cost of constructed engineering and transportation infrastructure facilities or connection to engineering and transportation networks, etc. This year, we have budgeted UAH 3 billion to support such investors," commented Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy.
The state support will be available to investors planning to implement a project in Ukraine worth at least EUR 12 million and lasting up to 5 years in the processing industry, extraction of minerals for further processing or enrichment, transport, logistics, education, research, healthcare, waste management, art, culture, tourism, sports, electronic communications.
The provision of state support for the implementation of an investment project with significant investments is preceded by:
- submission by the applicant (resident or non-resident legal entity) to the Ministry of Economy of an application together with the relevant documents for the assessment of a project with significant investments;
- evaluation of the investment project by the Ministry of Economy and issuance of a conclusion on the feasibility/inefficiency of its implementation and conclusion of a special investment agreement or refusal to conclude it;
- concluding a special investment agreement between the Cabinet of Ministers, a local government body (if state support is provided by such a body for the implementation of a project with significant investments), an investor with significant investments and the applicant.
For support in the preparation and implementation of an investment project with significant investments, the applicant should contact UkraineInvest for information and advisory assistance.
Investors can receive several types of support from the state, which amount to up to 30% of the amount of an investment project with significant investments. These include:
- priority right to use state-owned or municipally owned land plots;
- reimbursement of the costs of construction of engineering and transportation infrastructure and the costs of connection to engineering and transportation networks
- tax benefits;
- duty-free import of necessary equipment;
- exemption from compensation for forestry production losses.
Projects must involve the construction, modernisation, technical or technological re-equipment of the relevant investment objects and the creation of new jobs. The investor must create at least:
- 10 new jobs with a salary at least 50% higher than the average salary in the region for the same type of activity;
- or 30 new jobs with a salary at least 30% higher than the average salary in the region for the same type of activity;
- or 50 new jobs with a salary at least 15% higher than the average salary in the region for the same type of activity.
