State support of UAH 5.1 billion for more than a thousand enterprises - the result of three years of operation of grants for the processing industry: Ministry of Economy, Environment, and Agriculture

More than 1,000 Ukrainian enterprises have already received funds to modernize or create new production facilities under the Grants for Processing Enterprises program. Over the three years of the program, the state has invested over UAH 5.1 billion in the development of the processing industry.

"The development of Ukrainian producers and attraction of investments in the real sector are sustainable priorities of the national industrial policy. Three years ago, we launched a grant program for processing companies that allows them to receive up to UAH 8 million to upgrade their production assets and purchase new equipment. Since then, 1,027 companies from all regions of Ukraine have received state support worth over UAH 5.1 billion. The Government is systematically expanding the program, taking into account the challenges of wartime, business demands, new technological trends, and industry needs," said Oleksiy Sobolev, Minister of Economy, Environment, and Agriculture of Ukraine.

The most active users of the program were companies from Kyiv, Dnipropetrovsk, Kyiv, Odesa, Lviv, Kharkiv, and Vinnytsia regions. Most of the grant recipients are producers of food products, furniture, metal products, wood products, printing, and textiles.

Key changes in the program over the past three years are as follows:

2023

-For companies operating or planning to start operating in the de-occupied territories, the following have been introduced

-Grants of up to 80% of the project cost have been introduced for companies operating or planning to start operating in the de-occupied territories, tender requirements have been simplified, and part of their contribution will be compensated from local budgets.

- Following Oschadbank, other banks in which the state owns more than 50% of the shares joined the program's partner banks.

- Requirements for applicants have been clarified: no tax debt, transparent ownership structure, and a viable business plan.

2024

- Drone manufacturers receive preferential terms - the state finances up to 80% of the project cost.

- Preferential conditions were extended to companies from the territories of active hostilities and the printing industry.

- At the request of businesses, the requirements for the number of jobs created have been changed: now, regardless of the amount of the grant, at least 5 jobs must be created (previously: from 5 to 25, depending on the amount of the grant). However, in any case, the manufacturer must pay a unified social contribution on the salaries of new employees for at least 20% of the grant amount within three years.

2025

- In April, the program was expanded to include a new area, Made for Victory. Manufacturers of components for weapons and military equipment can receive up to UAH 8 million to develop their facilities.

- In July, the Cabinet of Ministers approved a new version of the Program Implementation Procedure: 

• Another new area was introduced - grants for the restoration of production facilities affected by russian armed aggression (up to UAH 16 million, but no more than the estimated losses).
• Possibility of repeated participation in the program has been added, subject to the fulfillment of the previous agreement.
• Preferential co-financing terms have been established for companies purchasing Ukrainian-made equipment: 70% state grant, 30% co-financing.
• Enterprises that grow perennial crops and are registered in the State Agrarian Register can receive a grant for the purchase of equipment for post-harvest processing of agricultural products.
• The grant funds can be used for R&D research to launch new products.

The program is funded from two sources:

- Budgetary funds (including donor contributions to the Economic Recovery and Transformation Fund). The Ministry of Economy issues orders for grants from the budget as part of the monthly budget allocation plan.

- The Fund for Compulsory State Social Insurance against Unemployment. The State Employment Service issues orders for grants based on information from the Ministry of Economy.

How to use the program and who can participate?

The maximum amount of a grant for development is UAH 8 million, for restoration - UAH 16 million (but not more than the amount of actually confirmed losses).

Grants are provided to entrepreneurs who:

- already work in the processing industry and plan to expand production;

- are planning to implement a processing project (KVED Classifier of Economic Activities codes, type C - Processing)

to finance:

- purchase, delivery and launch of new equipment;

- expansion and modernization of existing production facilities;

- restoration of facilities damaged by the armed russian aggression.

The format of support is co-financing:

- 50/50 - for most enterprises;

- 70/30 - for the purchase of equipment exclusively made in Ukraine;

- 80/20 - for drone manufacturers, printing sector, enterprises in combat zones and enterprises affected by shelling.

Conditions for using grants:

- Businesses must create at least 5 jobs.

- The business must operate for at least three years to repay the grant funds through taxes and fees.

The Grants for Processing Enterprises program is part of the Made in Ukraine state policy aimed at developing production, supporting the domestic market, and increasing exports of high value-added products.