Yulia Svyrydenko: The Government’s priority is to create conditions that allow businesses and people to work in their own communities

Prime Minister of Ukraine Yulia Svyrydenko, together with the Government team, held a meeting with Members of Parliament on support for frontline regions in key areas including the economy and the social sector.

According to the Prime Minister, 86% of communities affected by the war have now been included in the list of frontline territories. The war has led to a decline in employment and investment, as well as a significant reduction in local budget revenues.

“The Government’s priority is to create conditions that allow businesses and people to remain and work in their own communities,” Yulia Svyrydenko stressed.

During the meeting, the participants discussed the possibility of introducing additional affordable lending programmes for frontline territories, tax incentives and a special regime for access to state and municipal property.

Particular attention was paid to preserving jobs and supporting the real economy sector.

The Prime Minister noted that the Made in Ukraine programmes are already in operation, including a special component for frontline territories.

In particular:

• Grants for micro and small businesses under the Vlasna Sprava (Own Business) programme, with grant amounts for frontline regions increased by 30% – up to UAH 500,000.
• Grants for production equipment of up to UAH 8 million and recovery grants of up to UAH 16 million under an 80/20 co-financing arrangement.
• Farmers in territories adjacent to combat zones will be able to receive compensation covering 40%, rather than 25%, of the cost of Ukrainian agricultural machinery.
• Affected enterprises will be able to compensate part of salary costs and the unified social contribution during the recovery period.
• A war-risk insurance programme in frontline regions allowing coverage of up to UAH 30 million in losses resulting from the destruction of buildings, infrastructure and equipment.

The participants also discussed support for education in frontline regions and granting critical enterprise status to businesses in order to preserve economic activity.

The issue of compensation for destroyed and damaged property was also discussed separately. At present, 90 applications from businesses have already been approved for a total amount of UAH 1.5 billion. The first payments are expected shortly.

“Supporting frontline communities is a matter of joint work between the Government and Parliament to ensure the country’s resilience, preserve jobs and sustain life in Ukrainian communities,” Yulia Svyrydenko emphasised.