State support for projects with significant investments

The government is launching a mechanism of state support for investment projects with significant investments. Thus, the Cabinet of Ministers approved the procedure for providing compensation for the cost of engineering and transport infrastructure facilities built by the applicant/investor with significant investments and compensation for the costs of connection and connection to engineering and transport networks necessary for the implementation of the project. This is the last regulatory act necessary to launch investor support. The decision was made at a meeting of the Government on March 15.

"Attracting investments to the economy is a key condition for the reconstruction and development of the country. Today we adopted the last regulatory document necessary for launching the mechanism of state support for projects with significant investments. Investors who are ready to implement projects worth 12 million euros or more in Ukraine will receive maximum assistance and support from us in the form of support, tax and customs benefits, compensation for the costs of the constructed objects of engineering and transport infrastructure or connection to engineering and transport networks, etc. This year, we put UAH 3 billion in the budget to support such investors ," commented First Deputy Prime Minister of Ukraine - Minister of Economy Yuliya Svyridenko.

Investors who plan to implement a project in Ukraine with a cost of 12 million euros and a duration of up to 5 years in the fields of processing industry, extraction of minerals for further processing or beneficiation, transport, logistics, education, scientific activity, health care will be able to receive state support. , 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 of an application by the applicant (legal entity - resident or non-resident) to the Ministry of Economy together with relevant documents for the evaluation of the project with significant investments;
• carrying out the assessment of the investment project by the Ministry of Economy and providing a conclusion on the expediency/improperty of its implementation and conclusion of a special investment contract or refusal to conclude it;
• conclusion of a special investment agreement, the parties of which are the Cabinet of Ministers, a local self-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 make up to 30% of the amount of an investment project with significant investments. In particular:

• preferential right to use land plots of state or communal property;
• compensation for construction costs of engineering and transport infrastructure facilities and costs for connection to engineering and transport networks;
• tax benefits;
• duty-free import of necessary equipment;
• exemption from compensation for losses of forestry production.

The projects should provide for the construction, modernization, technical or technological re-equipment of the relevant investment objects and the creation of new jobs. The investor needs to 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.

Source: https://www.me.gov.ua/News/Detail?lang=uk-UA&id=3fff431f-7a56-41ca-a245-1bf7b0c3c51a&title=UriadZapuskaMekhanizm

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