The Cabinet of Ministers of Ukraine has approved a Procedure for providing compensation for the costs of connection to engineering and transport networks to initiators, management companies and participants of industrial parks.

The relevant decision was made by the Government at a session on January 3, 2023.

"The State is carrying out extensive comprehensive work to attract investment, including the preparation and presentation of investment opportunities, in particular on the Advantage Ukraine platform, guaranteeing investment risks, creating favorable conditions for investors. Attracting investments in industrial, including eco-parks, is an integral part of this work. Today's decision will help raise investments in the economy and stimulate the development of industrial parks," said Deputy Minister of Economy of Ukraine Oleksandr Hryban.

According to the Procedure adopted by the Government, in order to receive compensation, initiators, management companies or participants of industrial parks must submit an application to the Ministry of Economy of Ukraine.

The applications will be considered by the permanent interagency Commission for the preparation of recommendations on state incentives for industrial parks. Based on the Commission's recommendations on granting or refusing to grant compensation, the Ministry of Economy will adopt the relevant orders and publish on its website information on the amount of compensation with a breakdown by applicants. It will also publish lists of applicants who have been denied compensation in the current year and the grounds for the denial.

According to the Procedure, up to 100% of the applicant's costs (excluding VAT) related to connection to engineering and transport networks are subject to compensation:

• transmission or distribution systems of electric energy (except for connection to electric networks of small distribution systems)
• general railway network;
• gas supply, heat, water supply and sewerage networks located outside the territory of the industrial park;
• infrastructure of electronic communication networks located outside the territory of the industrial park.
• The total amount of compensation from all sources may not exceed 100% of the applicant's costs.

Currently, the Register of Industrial Parks includes 60 industrial sites. Of these, 9 are new parks registered in 2022.