Made in Ukraine: Manufacturers in the processing industry to receive up to UAH 16 million for restoring capacities after attacks

The Cabinet of Ministers of Ukraine, at its meeting on 7 July, approved a new version of the Procedure for the implementation of the “Grants for Processing Enterprises” programme. A new strand has been introduced within the programme – grants for restoring production capacities for processing enterprises damaged by russia’s armed aggression. These enterprises can now receive up to UAH 16 million for the purchase, delivery, and installation of equipment. Additional provisions have also been added to the Procedure, expanding the programme’s scope: the possibility to apply for a grant again, specific conditions for enterprises purchasing equipment of Ukrainian origin, and other updates. The grant programme continues to serve as a key tool in the Made in Ukraine policy to support manufacturers.

“The intensity of enemy attacks on Ukrainian industry has significantly increased recently. Due to massive shelling and fires, Ukrainian enterprises are losing costly equipment critical to production every day. That’s why we are expanding the grant programme – processing industry enterprises can now receive up to UAH 16 million to restore damaged capacities, with the state covering up to 80% of the costs. Additionally, the new version of the Procedure allows for repeated participation in the programme and extends support for farmers and producers opting for Ukrainian-made equipment. These changes will enable enterprises to restore lost capacities, create new jobs, launch additional production lines, and ensure stable development,” stated First Deputy Prime Minister and Minister of Economy Yuliia Svyrydenko.

Grants for restoration will be provided to micro, small, and medium-sized enterprises and individual entrepreneurs operating in the processing industry that can document damage or destruction to their production facilities due to russia’s military aggression.

The maximum grant amount for restoration is UAH 16 million (but not exceeding the verified losses). Grants are awarded on a 20/80 co-financing basis, meaning for the maximum grant of UAH 16 million, the applicant’s contribution must be UAH 4 million.

Any affected manufacturer, regardless of related party groups, is eligible to apply for a grant. To submit an application, applicants must provide an extract from the Unified Register of Pre-Trial Investigations and a damage assessment report based on the methodology of the State Property Fund and the Ministry of Economy. Enterprises that previously received a grant for development or establishment of a processing enterprise may also apply, but the total amount of grants received under this programme cannot exceed UAH 16 million.

Other conditions align with the core grant programme for processing enterprises: recipients must create at least 5 new jobs, ensure the grant amount is repaid through taxes and the Unified Social Contribution (USC) within three years (with at least 20% of the USC from new jobs). Funds can only be spent on purchasing, delivering, and installing new equipment of Ukrainian or foreign origin.

The programme also includes the following updates:

• Enterprises growing perennial crops and registered in the State Agrarian Register can receive grants to purchase equipment for post-harvest processing of agricultural products.
• Grant funds can now be used to acquire intangible assets, such as conducting research for launching new products into serial production (R&D).
• Projects using exclusively Ukrainian-made equipment, verified by a certificate of origin, are eligible for 30/70 co-financing: 30% from the applicant and 70% from the grant.
• Enterprises that have previously received a grant and fulfilled all obligations under the previous agreement can reapply (after the Ministry of Economy approves the report on the fulfilment of the previous grant’s conditions).

Applications are accepted continuously in two-week waves through the Diia platform.

The grant programme’s conditions include 50/50 co-financing for most enterprises and 80/20 for manufacturers of drones, printing businesses, and enterprises in frontline regions.