Recovery Grant: Yuliia Svyrydenko announces a new grant programme for businesses that suffered damage

The Government is preparing a new grant programme for businesses that have suffered damage due to the hostilities. This was announced by the First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko at the State and Business Forum in Kyiv. The maximum amount of aid is up to UAH 16 million, but not more than the amount of damage caused.

"Daily attacks by russians are destroying the economy. We need resources to restore businesses, so the Government is launching a new grant, which is called the Recovery Grant. The companies affected by the damage will be eligible to receive up to UAH 16 million to help them get back to work. This is about preserving production, jobs and life in communities. Our task is to support businesses and give them confidence that the Government is standing by them and helping them to survive and recover," said Yuliia Svyrydenko

Programme terms and conditions

Both legal entities and individual entrepreneurs whose production facilities have been damaged will be eligible to receive a grant. The funds will be used to purchase new equipment, pay for its delivery and installation. A business plan, a damage assessment report, and an extract from the Unified Register of Pre-Trial Investigations must be submitted.

Those companies that have previously received a recycling grant can apply again, but the amount of the new grant will be reduced by the previous one. The conditions include creating at least 5 jobs and paying taxes on the grant amount for three years (including 20% in the form of unified social tax on new employees).

Those who have overdue loans will not be eligible to receive a grant, including those who are involved in criminal cases, work with the aggressor country or are under sanctions. The decision will be made by the Ministry of Economy and the State Employment Service.

In addition to the new grant, Yuliia Svyrydenko reminded of the existing tools for the development of Ukrainian producers, combined under the Made in Ukraine policy: Affordable Loans at 5-7-9, compensation for the purchase of Ukrainian equipment, industrial parks, localisation in public procurement, and eOselia.

During the event, business representatives voiced a number of issues that need to be further developed by the Government.

• Further support for Ukrainian producers. Entrepreneurs expect further implementation of production development programmes. In particular, in terms of access to public and defence procurement. They need to expand the compensation programme for Ukrainian machinery and equipment. They expect the Parliament to quickly consider a mechanism for compensating capital investments through taxes.
• Economic policy for the frontline regions. Businesses in the frontline regions operate in more difficult conditions and require a separate economic policy. First and foremost, they need to solve lending problems, as banks do not accept property from these regions as collateral. Compensation for destroyed or damaged property and the restoration of community life are also relevant issues.
• Access to international markets. Business is interested in expanding access to foreign markets. This means cancelling duties, removing non-tariff barriers, and simplifying certification and compliance with sanitary requirements. A positive example is the progress in trade with Canada.
• Institutional support for exports. Ukraine needs to build a modern infrastructure to promote exports. Businesses expect to resume funding for participation in international exhibitions, simplify certification, and launch an industrial visa-free regime. It is important to develop institutions, including the ECA's capitalisation, the restoration of trade missions at embassies, and the creation of an export finance institution.
• Human capital development. Businesses across the country are facing a shortage of skilled workers. Businesses are calling for the development of programmes to bring back specialists from abroad and among IDPs, as well as provide them with housing. Effective vocational education and retraining programmes are needed.
• European integration and its challenges for business. European integration opens up new opportunities but also poses challenges for the Ukrainian economy, especially for the agricultural sector. Agrarians expect an active position of the state in negotiations with the EU and systematic support for adaptation to new standards and rules.

"We are recording all these requests and will look for solutions in cooperation with business. We will work on the issues and use them as a basis for further changes to our economic policy," summed up Yuliia Svyrydenko.