Business

The Government approves the procedure for compensating large investors

On 15 March, the Cabinet of Ministers approved a procedure for compensating investors for the construction of engineering and transport infrastructure facilities at the expense of the state

This is reported on the government portal, Kommersant ukrainskyi reports.

First Vice Prime Minister of Ukraine and Minister of Economy Yulia Svyrydenko noted that this is the last regulatory act necessary to launch a state programme to support projects with significant investments.

“Investors who are ready 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, compensation for the cost of constructed engineering and transport infrastructure facilities or connection to engineering and transport networks, etc. This year, we have budgeted UAH 3 billion to support such investors,

– Svyrydenko said.

State support will be available to investors planning to implement a project in Ukraine worth at least €12 million and lasting up to 5 years in the areas of processing industry, extraction of minerals for further processing or enrichment, transport, logistics, education, research, healthcare, waste management, art, culture, tourism, sports, and 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;

• the Ministry of Economy evaluates the investment project and provides a conclusion on the feasibility/inefficiency of its implementation and concludes a special investment agreement or refuses to conclude it;

• conclusion of 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

• pre-emptive right to use state-owned or municipally owned land plots;

• reimbursement of the costs of construction of engineering and transport infrastructure facilities and the costs of connection to engineering and transport networks

• tax benefits;

• duty-free import of necessary equipment;

• exemption from compensation for forestry production losses.

Projects should include 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.

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