The full-scale war waged by russia against our state has severely impacted the economy. The first quarter - minus 15% of GDP. Hundreds of enterprises were destroyed, ports were blocked, millions of people fled the country, more than 4 million people who remained in the country lost their jobs, and supply and production chains were broken.
The Government sees and understands all these challenges and problems. Therefore, we are now developing new logistics routes across the western borders to the maximum. We have helped farmers to carry out a successful sowing campaign. Resumed and can admit efficient implementation of an affordable lending program. We removed unnecessary regulations and thus have significantly simplified lives for our entrepreneurs.
It all works, but it's not enough. Therefore, the Government, on commission of the President of Ukraine, is launching a new economic strategy that will operate in conditions of war, help our economy survive and become the basement for the post-war recovery.
In total, there are 8 programs aimed at creating workplaces through business support, government procurement, construction, lending and employment. It is also a non-refundable grant aid to small and medium-sized businesses, support for Ukrainian producers, and construction of new infrastructure.
Today I will voice data on 6 different non-refundable grant support programs for small and medium businesses. We want to ensure that as many Ukrainians as possible can start their own businesses, because it is the private sector that is a key component of successful economic development. Hence, we will create the best working conditions and maximum support from the state for SMEs.
Thuswise, the first program is micro-grants to launch a startup. The state will provide grants to create thousands of new micro-businesses.
Applications are to be submitted through the Diia in the form of a business plan to be reviewed by independent assessor entrepreneurs. Moreover, it is available to take a soft loan in the framework of "5-7-9" program under such a startup. We expect that the grant program will allow us to create tens of thousands of jobs.
The second initiative is non-refundable grants for the development of processing enterprises. In particular, we are talking about woodworking, furniture production, manufacturing of clothing or accessories, building materials, agricultural processing, etc. The state will issue a grant that can be spent on the purchase of equipment.
The third initiative is a program in the agrarian sector, and it will concern partial compensation for the cost of greenhouses. Non-refundable grant for a typical 2-hectare modular greenhouse project. Co-financing of the state and business is mandatory here. Like in the previous two programs, the application is submitted through the Diia, and aftermath - work with the bank. Currently, we plan to build up to 3,000 such greenhouses. This means new production, new export opportunities, an increased supply of vegetables, berries and fruits in the domestic market, more competition and more favorable prices.
The next program is also related to the agricultural domain. These are grants for planting new orchards and berry fields. The same is a scheme of co-financing of the state and business. Primary expectations from the project are the planting of new gardens on a total area of up to 10,000 hectares.
Another sector I believe will be the driver of our economic growth is IT. The legal regime of the Diia City, which is used by more than 200 companies, is already working successfully. Simultaneously, the state is most interested in creating Ukrainian startups and is ready to invest in it. What do we offer?
The Ukrainian Startup Support Fund will buy back shares in newly established companies. The target audience of the program is start-up IT entrepreneurs who have an idea to create a technology startup and are looking for funding for the stage of creating a test model. The money can only be spent on development, hiring, modeling and initial funding. The budget of the program for one year is UAH 10 billion. Priority will be given to export-oriented companies.
The Ukrainian Startup Support Fund already has good experience in supporting our IT entrepreneurs. There is a highly professional team working there, so I assure you that we will be able to deploy such a new program rather quickly.
In 2021, the number of IT professionals in Ukraine increased by a record 50,000 people, but many companies still had a shortage of staff. In recent years, IT professionals have become a real middle class in our country, so we want to increase focus on the sector and, in fact, help those who want to take up an IT profession.
Ukrainians who want to qualify as a junior developer or graphic designer, or other technical specialty will have a chance to receive a grant that can only be spent on training in IT courses. The state will provide funding for 60,000 Ukrainians, who will then be able to find work in this field.
In total, these six grant programs can be a real trigger of growth for the economy. This is a focus on small and medium-sized businesses. This is a motivation for people to stay and work in Ukraine. Work for our victory now, as well as for building a strong Ukraine in the future.
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In general, our goal is a minimum of bureaucracy and a maximum of state support. Cheap loans. Fair competition. Maximum digitalization. The latter is a particularly important project that is being implemented at all levels of government and interaction between the state and business, as well as the state and citizens.
Today we will vote and submit to the Verkhovna Rada a bill that provides for customs clearance of cars in the Diia. Everything is as simple and convenient as possible. It is enough to enter the VIN-code of the vehicle, and the calculation of payments is automatic. You can pay directly in the application. The whole process of customs clearance takes no longer than 5 minutes.
On the other hand, we eliminate once and for all any schemes, corruption and manipulation of car prices during customs clearance procedures. Customs officers will not influence the customs clearance formula. It will be determined exclusively by the characteristics of the car: the volume, type and power of the engine, the age of the car and its exclusivity. Also, our bill contains rules that provide for full exemption from taxation of cars with electric motors and a lower rate for cars with hybrid motors. Within the framework of the Ukrainian Green Course, it is concern for both our environment and cleaner air.
The government’s bill and approach are an example of how digitalisation reform is becoming anti-corruption reform at the same time. The new service has virtually no analogues in the world and demonstrates the desire of the state to do everything as convenient and transparent for people.
We want Ukraine to be among the best countries in the world. It is for such a free, strong and prosperous Ukraine that our defenders are now fighting. We must all do our utmost to be worthy of their feat here in the rear. And this means working, building, developing our economy for the sake of the victory of Ukraine.
Thank you for attention. Glory to Ukraine!