Government approves signing of first agreements for significant investments

The Government of Ukraine has approved the signing of two special investment agreements for the implementation of investment projects with significant investments.

From now on, the implementation of investment legislation in the sphere of significant investments in Ukraine has become a real component of the state economic policy.

The signing of these agreements will result in the attraction of about EUR 95 million into the Ukrainian economy and the creation of more than 200 new jobs.

The Law of Ukraine “On state support for projects with significant investments in Ukraine”, which is pro-European in spirit and content, is the result of a legislative initiative by the President of Ukraine, Volodymyr Zelenskyy. It applies to projects with a capital investment of EUR 12 million or more and covers key areas of state life, including manufacturing, logistics, warehousing, healthcare, electronic communications, mining, etc.

An investor who concludes a special investment agreement with the Cabinet of Ministers of Ukraine receives significant support from the Ukrainian state in the form of tax exemptions and compensation of up to 30% of significant investments. For example, an investment project worth EUR 12 million can receive state support of up to EUR 3.6 million if it concludes a special investment agreement with the Government of Ukraine.

The law provides for special mechanisms to facilitate potential investors in the preparation and implementation of an investment project involving significant investment.

UkraineInvest, the Government’s investment promotion office, plays a key role in this process. UkraineInvest has a key role as a state-authorised institution that directly attracts investors, provides them with legal, advisory and analytical support in preparing an application for project evaluation and granting the status of investment project with significant investment. The Office also provides support until the investment project is completed and the terms of the investment agreement are met.

Despite the challenges, UkraineInvest continues to persistently attract investment, with the guidance of the Government of Ukraine, the relevant committee of the Verkhovna Rada and the support of the Ministry of Economy. For example, over the past 6 months the Office has assisted companies in preparing applications for submission to the Ministry of Economy of Ukraine to undergo the evaluation process and obtain the status of investment projects with significant investments totalling more than EUR 290 million.