Made in Ukraine: Two more industrial parks to receive UAH 81 million in state incentives

The Ministry of Economy, Environment, and Agriculture of Ukraine today decided to provide state incentives to two industrial park management companies for a total amount of UAH 81 million.

The funding will be granted to:

• VinIndustri Industrial Park (Vinnytsia region) — UAH 40.3 million for major repairs to the road running to the industrial park.
• Ternopil Industrial Park (Ternopil region) — UAH 40.7 million for the construction of electrical networks within the industrial park territory.

Taking into account today's decision, five industrial parks have already received state support this year for the implementation of seven projects totaling UAH 344.5 million.

The program “State Stimulation of Industrial Park Creation” in accordance with Resolution No. 644 of the Cabinet of Ministers of Ukraine provides for the development of engineering and transport infrastructure in industrial parks on a co-financing basis: roads, electrical networks, water supply, sewage, gas supply, and other technical solutions necessary for the launch of production.

“State stimulation of industrial parks is an example of how the Made in Ukraine policy works not as a slogan, but as a real tool for development. Investments in industrial infrastructure create the basis for production, job creation, and taxes. Every hryvnia allocated from the state budget brings in 5-6 hryvnias of private equity.

In this way, industrial parks become an important driver of the country's economic growth," said Vitalii Kindrativ, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.

State support envisages 50/50 co-financing for the creation of engineering and transport infrastructure and connection to electricity networks in the amount of up to UAH 150 million per industrial park. A special co-financing mechanism is in place for de-occupied territories, with a ratio of 80/20.

The Ministry of Economy, Environment, and Agriculture is implementing the program in cooperation with Ukreximbank, Oschadbank, Ukrgasbank, and Sense Bank.

A number of fiscal incentives are also provided for industrial park participants, including:

• exemption from import duties and import VAT on production equipment;
• exemption from income tax for 10 years, subject to reinvestment;
• the right of local authorities to reduce property tax and land tax rates to zero.

Up to now, there are 110 industrial parks registered in Ukraine in almost all regions.

Industrial parks are part of the Made in Ukraine policy for the development of Ukrainian manufacturers, which aims to create conditions for increasing domestic production, attracting investment in the real sector, and expanding non-raw material exports.