Government improves procedure for importing equipment and components for investment projects with significant investments

The Cabinet of Ministers of Ukraine has improved the Procedure for the import into the customs territory of Ukraine and the intended use of new equipment and components imported by investors for their own use in the implementation of an investment project with significant investments. The relevant decision was made at a Government meeting on 3 January.

“The reconstruction of Ukraine is impossible without attracting funds from private investors. Therefore, one of the areas of work is to attract projects with significant investments in the real sector of the economy. This year, UAH 3 billion has been allocated in the budget to support them. The funds will be provided to investors who focus on production facilities for the manufacture of high value-added products. The Government’s amendments to the Procedure for the import of equipment and components should make it easier to start implementing projects with significant investments. This should be a signal to investors who are already preparing to start working in Ukraine,” said Deputy Minister of Economy of Ukraine Volodymyr Kuzio.

In particular, the government resolution introduced the changes regarding:

• clarification of the deadlines for submitting the list and volumes of imported goods by both the applicant and the investor with significant investments;
• compliance of the list and volumes of imported goods submitted by the applicant with the provisions of the draft special investment agreement, the terms of which have been agreed upon in accordance with the law;
• expanding the grounds for refusal to approve the list and volumes of goods when reviewing it at the written request of an investor with significant investments.

It is worth noting that entrepreneurs implementing projects with significant investments are entitled to receive several types of support from the state, which amount to up to 30% of the investment project value. In particular:

• pre-emptive right to use state-owned or municipally owned land plots;
• budget financing of the construction of engineering and transport infrastructure (roads, connection to engineering networks);
• tax benefits;
• exemption from compensation for forestry production losses;
• duty-free import of necessary equipment.

Background

Projects with significant investments include investment projects worth at least EUR 12 million. Investors need 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 for the previous calendar year;
• or 30 new jobs with a salary at least 30% higher than the average salary in the region for the same type of activity for the previous calendar year;
• or 50 new jobs with a salary at least 15% higher than the average salary in the region for the same type of activity for the previous calendar year.