Made in Ukraine: Ministry of Economy, Environment and Agriculture begins accepting applications for state incentives for industrial parks in 2026

Starting today, developers and management companies of industrial parks may submit applications for state incentives to develop industrial infrastructure and receive compensation for the costs of connecting to electrical grids. Applications will be accepted until August 15, 2026, through four authorized banks: Oschadbank JSC, Ukreximbank JSC, Ukrgasbank JSC, and Sense Bank JSC.

“We have seen high demand for the development of industrial park infrastructure during the first two years of the program. That is why it will continue in 2026. Thanks to the early start of the application period, the parks will have more time to prepare their documents thoroughly. As part of the Made in Ukraine policy, we have improved conditions for frontline regions, where the state’s share has increased to 80%, and envisaged up to UAH 200 million for the restoration of damaged infrastructure. “This will help preserve and develop industrial potential and jobs across the country,” noted Vitalii Kindrativ, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.

The provision of state incentives requires the applicant to fulfill certain obligations, including commissioning at least 5,000 square meters of industrial buildings and attracting at least two processing enterprises. This approach ensures high efficiency in the use of budget resources, as every hryvnia of state investment attracts at least five hryvnias of private capital.

Restoration of Industrial Infrastructure and Support for Frontline Areas

The Government recently amended Resolution No. 644 to introduce a separate incentive mechanism for industrial parks whose engineering and transportation infrastructure has been either damaged or destroyed as a result of hostilities. In the event of damage to a facility, state incentives are provided in the amount of 80% of the project’s estimated cost, but not exceeding UAH 200 million per park. Such an application must be submitted no later than 6 months from the date of damage to the facility and is considered on a priority basis. If the applicant has previously received state incentives, the maximum incentive amount is determined as the difference between UAH 200 million and the amount of funds actually received, with no additional obligations imposed on the applicant. These changes allow for the rapid restoration of networks and substations, ensuring the continued operation of industrial sites despite russia’s aggression.

The updated rules pay special attention to the development of de-occupied and frontline territories. The 80/20 preferential co-financing mechanism, which previously applied only to de-occupied communities, now extends to frontline communities as well. This means that communities located in close proximity to the combat zone shall receive a larger share of state funding for the creation or modernization of engineering and transportation infrastructure, creating strong additional incentives for investors.

Financial Flexibility and Program Effectiveness

In addition to recovery tools, the Government has introduced mechanisms for financial flexibility and strengthened discipline in the use of resources. With the approval of the Ministry of Economy, Environment and Agriculture an applicant may reallocate state incentive funds among projects or direct them toward new projects within the same industrial park. At the same time, in the event of a refund and the applicant’s failure to fully fulfill obligations regarding the construction of space and the attraction of participants, the payment of compensatory interest is required. This interest is calculated using the National Bank of Ukraine’s discount rate for the entire period of use of budget funds, ensuring a responsible approach to state resources.

The state incentive program has already proven its effectiveness in previous years. As of today, 114 facilities have been included in the Register of Industrial Parks. Since the program’s inception, the initiators and management companies of 22 industrial parks have received state incentives to implement 56 projects totaling UAH 1.8 billion. Thus, by developing industrial infrastructure, industrial parks are becoming key growth hubs for Ukraine’s manufacturing sector.

More details about the state incentives can be found at the official website of the Ministry of Economy, Environment and Agriculture.