LAW OF UKRAINE

from June 21, 2012 of No. 5018-VI

On Industrial Parks
(The Official Bulletin of the Verkhovna Rada of Ukraine (BVR), 2013, No. 22, Article 212)

{As amended by Laws
No. 406-VII of 4 July 2013, BVR, 2014, Nos. 20–21, Article 712
No. 818-VIII of 24 November 2015, BVR, 2016, No. 2, Article 16
No. 440-IX of 14 January 2020, BVR, 2020, No. 28, Article 188
No. 1089-IX of 16 December 2020
No. 1710-IX of 7 September 2021, BVR, 2021, No. 49, Article 390
No. 2330-IX of 21 June 2022}

This Law defines the legal and organisational grounds for establishing and operating the industrial parks within the territory of Ukraine in order to ensure economic development and increase the competitiveness of territories, activate investment activities, create new jobs, develop modern industrial and market infrastructure.
Section I
GENERAL PROVISIONS
Article 1. Definitions 
1. For the purposes of this Law, the following definitions shall apply:
1) choice of territory for an industrial park shall mean a set of legal and institutional, planning and other activities of the initiators of establishing industrial parks to search, buy out, assign and establish in kind (on the ground) free from development or built-up land plots intended for the creation of an industrial park;
2) conduct of business activities within the industrial park is a business activity of participants, management company, initiator of the creation of an industrial park based on the contracts on the creation and operation of the industrial park and/or the implementation of business activities within the industrial park;
3) Industrial (manufacturing) park (hereinafter referred to as the industrial park) is a territory defined by the initiator of the creation of an industrial park in accordance with urban construction documentation and equipped with the appropriate infrastructure, within which industrial park participants can conduct business activities in the field of processing industry, processing of industrial and/or household waste (except waste disposal), as well as scientific and research, activity in the field of information and telecommunications under the conditions defined by this Law and the contract on the conduct of business activity within the industrial park;
The territory of industrial parks may not be engaged in the production of excisable goods (except for the production of cars, it’s bodies, trailers and semi-trailers, motorcycles, vehicles designed to carry 10 people or more, vehicles for the transportation of goods) and economic activities that falls under licensing in accordance with paragraphs 18, 18-1, 20-22, 32 of the first part of Article 7 of the Law of Ukraine "On licensing of economic activities types";
4) the initiator of the creation of an industrial park (hereinafter referred to as the initiator of the creation) is a government authority, the local government which, under the Constitution of Ukraine, exercises the right of land owner on behalf of the Ukrainian people, and is endowed with the powers for land disposal in accordance with the law, as well as a legal entity or individual, being the owner or lessee of the land plot that can be used and offered by him/her for the creation of an industrial park;
5) management company of the industrial park (hereinafter referred to as the management company) is a legal entity created in accordance with the legislation of Ukraine, regardless of its organisational and legal form and selected in accordance with this Law, with which the initiator of the creation concluded the contract on the creation and operation of an industrial park;
6) the arrangement of the industrial park is an execution in accordance with the terms of the contract on creation and operation of the industrial park and under the law of Ukraine “On Regulation of city planning activities”, of a complex of works and services for land plot preparation, as well as designing, construction, reconstruction, repair and arrangement of objects of engineering and transport infrastructure and other objects by the management company and/or by the initiator of industrial park creation by means of budget, own, borrowed or other funds in order to create appropriate conditions for performing economic activity by participants.
6-1) trans-border industrial park is an industrial park that is created and operating by virtue of an international treaty of Ukraine concluded between the governments of states or their authorised initiators of creation. The procedure for the creation and operation of such industrial parks is regulated by international treaties of Ukraine;
7) competent government authority – the central executive authority that implements the state policy on the establishment and operation of industrial parks in Ukraine, whose activities are directed and coordinated by the Cabinet of Ministers of Ukraine;
8) participant of industrial park (hereinafter referred to as the participant) is a business entity of any form of property registered on the territory (within the limits) of the industrial park which has acquired the right to a land plot and/or another object (part of the object) of real estate within the limits of the industrial park in accordance with the legislation, has concluded the contract with the management company on the conduct of business activities within the industrial park according to the industrial park's concept and must carry out economic activities exclusively in the field of processing industry, processing of industrial and/or household waste (except waste disposal), as well as scientific and technical activities, activities in the field of information and telecommunications only in the territory (within the limits) of the industrial park;
9) another entity of industrial park is a business entity of any form of property which has acquired the right to a land plot and/or another object (part of the object) of real estate within the limits of the industrial park in accordance with the legislation, has concluded the contract with the management company and carries out economic activity in areas not prohibited by this Law on the territory (within the limits) of the industrial park. Another entity of industrial park is not entitled to receive state incentives in accordance with this Law.
Article 2. Legislation on Industrial Parks
1. The Constitution of Ukraine, the Civil Code of Ukraine, The Economic Code of Ukraine, The Land Code of Ukraine, the Tax Code of Ukraine, the Customs Code of Ukraine, this Law, the Law of Ukraine “On Regulation of City Planning Activity”, other legislative acts of Ukraine, as well as international treaties of Ukraine ratified by the Verkhovna Rada of Ukraine are considered to be the legislative basis for the creation and operation of industrial parks.
2. If the international treaty of Ukraine ratified d by the Verkhovna Rada of Ukraine establishes regulations other than those stipulated by this Law, the regulations of the international treaty shall apply.
Article 3. Scope of the Law
1. This law shall apply to relations arising in connection with the creation, operation and liquidation of industrial parks based on the use of land plots, natural resources, property and integral property complexes by its participants for the conduct of business activities.
2. This Law is not applicable to activities of business entities that do not meet the requirements of this Law.
Article 4. Basic grounds for the creation and operation of industrial parks
1. The creation and operation of industrial parks on the territory of Ukraine is carried out on the following grounds:
1) free access to information about the capability of land use for the creation of industrial parks;
2) competitiveness in choosing a management company on lands of state and municipal property;
3) guarantee of rights for land plots within the industrial park;
4) state support for the creation of industrial parks;
5) state inspiration to attract investment in industrial parks.
2. Functional appointment of the industrial park is defined by the concept of the relevant industrial park.
3. The characteristics of legal regulation according the functional appointment of industrial park and the relevant obligations of the initiator of the creation and management company of the industrial park are determined by the agreement on the creation and operation of the industrial park.
4. The operation of industrial parks is aimed at:
1) investment attraction and economic development of Ukraine;
2) equalization of economic development of regions and improvement of quality of life of the population of Ukraine;
3) introduction of innovative and energy-saving technologies;
4) creation of new jobs;
5) sustainable development and protection of the natural environment.
Article 4-1. Public administration in the field of creation and operation of industrial parks on the territory of Ukraine
1.	Public administration in the field of creation and operation of industrial parks on the territory of Ukraine is carried out within the powers defined by this Law and other acts of legislation of Ukraine:
1)	Cabinet of Ministers of Ukraine;
2)	Central Executive Authority ensuring the formation and implementation of state investment policy;
3)	Central Executive Authority ensuring the implementation of state policy on the creation and operation of industrial parks on the territory of Ukraine (competent government authority);
4)	Local Executive Authority;
5)	The local government. 
Section II
THE RIGHT TO CREATE INDUSTRIAL PARKS
Article 5. The right to create industrial parks on the lands of state and municipal property
1. The right to create industrial parks on lands of state and municipal property is granted to state authorities, local authorities that exercise the right of the owner to land on behalf of Ukrainian people under the Constitution of Ukraine and are authorised by the order of land plots under the law, as well as lessees of land plots that, in accordance with this Law, meet the requirements for their use for an industrial park.
Article 6. The right to create industrial parks on lands of private property
1. The right to create industrial parks on lands of private property belongs to the owners or lessees of land plots that, in accordance with this Law, meet the requirements regarding their use for an industrial park.
Article 7. The characteristics of creation of industrial parks on leased land plots
1. Industrial parks may be created on the initiative of lessees after making appropriate changes to the land plot lease agreement and making a decision by a lessor to approve the concept of an industrial park on leased land plots.
Article 7-1. Restrictions on the creation of industrial parks
1.	Initiator of creation, management company may not be created / founded by natural persons - citizens of the state recognized by the Verkhovna Rada of Ukraine as an aggressor or occupying state, or legal or related persons registered in the state recognized by the Verkhovna Rada of Ukraine as an aggressor state or the occupying state, or subject under sanctions in accordance with the legislation of Ukraine or international law, or legal entities - owners of 10 percent or more of shares and / or ultimate beneficial owner (controller) who is a resident of a state recognized by the Verkhovna Rada as an aggressor or an occupying state, or a state recognized by the Verkhovna Rada of Ukraine as an aggressor state or an occupying state and / or economic entities connected by economic ties with the aggressor state within the meaning of the Tax Code of Ukraine.  
2.	Participants or other entities of the industrial park may not be economic entities of any form of ownership created by natural persons - citizens of the state recognized by the Verkhovna Rada of Ukraine as the aggressor state or the occupying state, or legal or related persons, registered in the state recognized by the Verkhovna Rada of Ukraine as the aggressor state or the occupying state, or subjects under sanctions in accordance with the legislation of Ukraine or international law, or legal entities - owners of 10 percent or more shares and / or ultimate beneficial owner (controller) who is a resident of a state recognized by the Verkhovna Rada as an aggressor or an occupying state, or a state recognized by the Verkhovna Rada of Ukraine as an aggressor state or an occupying state and / or economic entities connected by economic ties with the aggressor state within the meaning of the Tax Code of Ukraine.  
Section III
SELECTION, USE AND ARRANGEMENT OF INDUSTRIAL PARKS
Article 8. Requirements for a land plot within an industrial park
1. The land plot the use of which is planned for the creation and operation of an industrial park may be located within or outside the localities and must meet the following requirements:
1) belong to industrial lands;
2) be available for industrial use, taking into account the conditions and restrictions defined by the relevant city planning documentation;
3) the area of the land plot or the total area of neighbouring land plots must be not less than 15 hectares and not more than 1000 hectares. It is allowed to locate between the land plots of the industrial park the land plots on which only the objects of engineering and transport infrastructure are located or are supposed to be located in accordance with the town-planning documentation.
Article 9. Conditions for the use of land plot within the scope of an industrial park
1. The use of land plots within the scope of industrial park on lands of state or municipal property is carried out in compliance with the following conditions:
1) the period of use of a land plot within the scope of industrial park must be liable at least 30 years from the date of making a decision to create of an industrial park;
2) the use of land plots within the scope of industrial parks must respond to sanitary, epidemiological and environmental requirements.
Article 10. Territory choice for an industrial park
1. Territory choice for an industrial park on lands of state or municipal property is carried out by state authorities and local self-governments, taking into consideration the requirements of this Law.
2. Territory choice for creation of industrial parks on lands of state or municipal property is carried out at the expense of state or local budgets, as well as at the expense of attracted investments, funds of private investors and from other sources not prohibited by law.
Article 11. Legal forms and procedure for land use within industrial parks
1. Participants may use land plots in the legal forms provided for by the Land Code of Ukraine within the scope of industrial park.
2. A management company that, in accordance with the procedure established by law, has gained the right to lease the lands of an industrial park, transfers for ownership and use of land plots (sublease) with the right to build them to participants, other entities of industrial park in accordance with the Land legislation of Ukraine.
3. In case when two or more potential participants apply for one land plot within the scope of industrial park, the management company is obliged to enact a competition for selection of participant, taking into consideration the concept of industrial park.
4. A land plot of state or municipal property is provided to the management company on lease terms within the scope of industrial park with the procedure established by law.
5. In case when an industrial park is created on lands of private property, the rights to land plots may be transferred to the participants of the industrial park and/or the management company initiating its creation in the forms and procedure provided for by law.
6. In case the initiator of the creation of an industrial park is the lessee of a land plot, this land plot or parts of it are subleased directly to the participants in accordance with the land legislation of Ukraine without prior agreement with the lessor, if this does not contradict the terms of lease agreement for such a land plot.
7. Land plots are provided to participants for the construction and service of real estate objects necessary to carry out economic activities.
8. The funds received from the sale of land plots of state and municipal property on the territory of an industrial park are credited to the relevant budgets in accordance with the procedure provided for by the Budget Code of Ukraine and the Law on the State Budget of Ukraine for the corresponding year.
Article 11-1. Facilities that can be located in the industrial park
1.	Facilities that may be located in the industrial park include:
1)	offices of the management company, participants and other entities of the industrial park, financial institutions, objects of marketing and advertising;
2)	preschool education institutions, general secondary education institutions, institutions of higher, professional higher and professional (vocational and technical) education;
3)	science parks, accelerators, laboratories for the development of innovative technologies;
4)	multi-purpose halls for scientific conferences and other events;
5)	fire brigades;
6)	green areas;
7)	industrial, warehouse buildings and structures, logistics infrastructure facilities;
8)	engineering buildings and structures;
9)	waste management facilities (except waste disposal);
10)	 other objects not prohibited by law.
Article 12. Sources of provision of finance for the development of an industrial park
1. The sources of provision of finance for the development of an industrial park may be funds from the state and local budgets allocated in accordance with the procedure and amounts provided for by law, funds from private investors, including funds attracted under the model of state-private partnership, attracted funds, including loans from banks and other financial and credit institutions, funds from other sources not prohibited by law.
 
Section IV
PROCEDURE AND CONDITIONS FOR CREATION OF INDUSTRIAL PARKS
Article 13. Initiators of creation of industrial parks
1. The initiators of the creation of industrial parks may be state authorities, local authority, legal entities or individuals who have the right to create industrial parks on lands of state, municipal or private property under this Law.
Article 14. Creation of industrial park and its inclusion in the Register of industrial parks
1. The decision to create an industrial park is made by the initiator of the creation on the basis of the concept of an industrial park approved in accordance with the requirements of this Law. An industrial park is created for a period not less than 30 years.
2. The initiator of the creation within five working days from the date of the decision to create an industrial park is obliged to submit to the competent government authority a copy of the decision to create an industrial park and the concept of the industrial park.
3. The information about created industrial parks is public, and the access to it is provided by competent government authority by means of it being posted on its official website.
4. The decision to create an industrial park is the reason for the agreement concluding on the creation and operation of an industrial park between the initiator of the creation and the management company of an industrial park.
5. For the purpose of state incentives provided by law, the competent government authority creates, maintains and publishes on its official website the Register of Industrial Parks, to which industrial parks are included at the request of the initiators of creation.
The list of information that entered in the Register of Industrial Parks and the procedure for its maintenance shall be determined by the Cabinet of Ministers of Ukraine.
The industrial park may be included in the Register of industrial parks provided that at the time of inclusion in its territory (within) there are no commissioned in the last 10 years until the decision to establish an industrial park completed construction and / or missing industrial facilities operated during the last five years before the decision to establish an industrial park (except for industrial facilities of a coal mining enterprise and / or its separate (adjacent) unit, which does not have the status of a legal entity that has been liquidated, is in the process of liquidation (termination) or is planned to be liquidated, which are not the subject under the restrictions of this article).
Property rights of intellectual property to the Register of industrial parks (database) belong to the state represented by competent government authority. The state, state authorities and their officials use the Register of industrial parks (database) free of charge. Property rights to computer programs and databases for maintaining the Register of industrial parks are subject to the requirements of Article 18 of the Law of Ukraine “On Administrative Services”.
6. State support is provided to initiators of creation, management companies and participants of industrial parks which are included in the Register of industrial parks.
Article 15. The list of documents for inclusion of an industrial park in the Register of industrial parks
1. In order to make a decision on including an industrial park in the Register of industrial parks, the initiator of the creation shall submit to the competent government authority the following documents:
1) application for inclusion of an industrial park in the Register of industrial parks;
2) the decision of the initiator to create an industrial park;
3) industrial park concept;
4) extract from the State land cadastre regarding the land plot and title establishing documents for real estate objects located on it;
5) name of management company and participants (if available).
Article 16. Decision to include an industrial park in the Register of industrial parks
1.	The inclusion of an industrial park in the Register of Industrial Parks shall take place within 45 working days from the date of receipt by the competent government authority of the application from the initiator of creation.
The competent government authority in the manner approved by the Cabinet of Ministers of Ukraine, considers the documents within 21 working days from the date of receipt of documents from the initiator.
The competent government authority submits to the Cabinet of Ministers of Ukraine a draft decision on the inclusion of an industrial park in the Register of Industrial Parks or on the refusal to include an industrial park in the Register of Industrial Parks.
2. The following criteria shall be taken into account when deciding on the inclusion of an industrial park in the Register of Industrial Parks:
1) availability of labor resources necessary for the development of the industrial park in accordance with the concept;
2) availability and/or capability of financial, material and technical resources attraction by the initiator of the creation which are necessary for the development of the industrial park in accordance with the concept;
3) support of the industrial park by local authority and local executive authority;
4) expected results of industrial park functioning in accordance with the concept involve attracting investment, creation of new working places, exporting products, and attracting small and medium businesses;
3. The decision to refuse to include an industrial park in the Register of Industrial Parks shall be made in the following cases:
1) if the land plot, the use of which is planned for the creation and operation of an industrial park, does not comply the requirements established by Article 8 of this Law;
2) lack of support for the industrial park by local governments and local executive authority;
3) the presence on the territory of the industrial park of industrial facilities specified in part five of Article 14 of this Law.
Refusal to include an industrial park in the Register of Industrial Parks does not limit the possibility of re-application of the initiator to the competent government authority with a request of inclusion of an industrial park in the Register of Industrial Parks.
4. In the decision to include an industrial park in the Register of industrial parks is specified the following:
1) name of the industrial park;
2) initiator of the industrial park creation;
3) the period of time for which the industrial park was created;
4) location of the industrial park.
5. Competent government authority is obliged within three working days from the date of the Cabinet of Ministers of Ukraine decision to include the industrial park in the Register of Industrial Parks to include the relevant industrial park in the Register of Industrial Parks, notify the initiator, management company, relevant local governments and post relevant information on its official website.
Article 16-1. Exclusion of an industrial park from the Register of Industrial Parks
1.	An industrial park shall be excluded from the Register of Industrial Parks in the case of:
1)	its liquidation in accordance with part one of Article 37 of this Law;
2)	failure to submit to the competent government authority reports on the functioning of the industrial park for two consecutive reporting periods;
3)	failure to conclude an agreement on the establishment and operation of an industrial park within two years from the date of the decision to create it;
4)	non-implementation of economic activity within the industrial park by all its participants for three consecutive years on the basis of information from reports on the functioning of the industrial park;
5)	non-compliance with the requirements of Articles 7-1, 11-1 and other requirements of this Law.
The competent government authority prepares a draft decision on the exclusion of an industrial park from the Register of Industrial Parks and sends it to the Cabinet of Ministers of Ukraine.
2.	Competent government authority is obliged within three working days from the date of the Cabinet of Ministers of Ukraine decision to exclude the industrial park in the Register of Industrial Parks to exclude the relevant industrial park from the Register of Industrial Parks, notify the initiator, management company, relevant local governments and post relevant information on its official website.
3.	Exclusion of an industrial park from the Register of Industrial Parks is not a ground for its liquidation.
4.	An industrial park excluded from the Register of Industrial Parks may be re-included not earlier than 6 months after the exclusion of such industrial park from the Register of Industrial Parks.
Article 17. Industrial park concept
1. The initiator of the creation of industrial park is obliged to develop and approve the concept of an industrial park, which specifies the following:
1) name of the industrial park;
2) initiator of the industrial park creation;
3) target, objectives of industrial park creation and functional appointment;
4) location, size of the land plot and objects located on it, including objects of industrial purpose;
5) the period of time for which the industrial park was created;
6) requirements for industrial park participants;
7) information on relative total amount of energy consumption, water, etc, as well as on necessary engineering and transport infrastructure and plan of industrial park providing with appropriate resources;
8) industrial park development plan;
9) estimated resources (financial, material, technical, labor, nature, etc) necessary for creation and operation of the industrial park, the expected sources of their involvement;
10) organisational model of industrial park operation;
11) expected results of industrial park operation;
12) other information at the discretion of the initiator of creation.
2. Industrial park concept is approved by the initiator of such a park creation by means of making the appropriate decision.
3. Business entities in the field of centralised water supplies and drainage, electricity and natural gas market, are obliged to render necessary information regarding the availability of resources for the creation of industrial park at the request of initiator of the creation in accordance with the legislation as well as to render technical conditions for connection to electricity networks (objects), in case the initiator of the creation has the information about necessary energy capacity for industrial park operation in accordance with the legislation. The technical conditions are an integral part of the agreement on connection to the electric networks.
4. Procedure of connection to electricity, gas and water supply networks, networks of heat energy supply (heat supply) and communication networks is established in accordance with the legislation.

Article 18. Choice of industrial park management company
1. Choice of the industrial park management company, created at the lands of state and municipal property, is made by the initiator of the creation of such a park on a competitive basis by means of organisation and conducting an open tender in the manner defined by this Law.
2. In case when land plots, intended for the creation of an industrial park, are the part of private property, the management company is determined by the initiator of creation independently.
3. If the initiator of the creation is a lessee of the land plot, management company of such a park is defined by him independently with written notice to the relevant public authority, local government and landlord no later than three working days.
Article 19. Organisation and conducting the tender for choosing the industrial park management company
1. Organisation and conducting the open tender for choosing the management company is carried out by the initiator of the creation.
2. Initiator of the industrial park creation:
1) shall approve the tender conditions for choosing the management company;
2) shall create tender commission and approve its composition and work procedure;
3) shall prepare tender documentation;
4) shall announce in public about an open tender with a message in the mass media;
5) shall define the procedure of registration fee payment, amount of which can not be more than one thousand non-taxable minimum incomes of citizens;
6) shall confirm in writing the receipt of applications to participate in tenders;
7) shall provide the applicants with necessary information (documents) in order to prepare the proposals to participate in tenders;
8) shall make decision on admission (non-admission) of applicants to participate in tenders with explanation of the reasons in case of refusal;
9) shall inform participants about admission (non-admission) to participate in tenders.
Non submission of all necessary information at the application to participate in tender, submission of not complete information or submission of incorrect information can be the reason for non-admission of the applicant to participate in tender of choosing the management company.
3. The information about tender proclamation of choosing the management company shall contain the following data:
1) entity that initiated the industrial park creation;
2) industrial park conceptions;
3) tender conditions, approved by the initiator of creation;
4) land plot which provides for the creation of industrial park;
5) objects, located on the territory of the land plot (list, characteristics, etc);
6) period of time for which the industrial park was created;
7) authority which should be addressed in order to receive additional information;
8) amount of registration contribution.
Registration contribution is paid by means of cash-free funds transfer to the current account of the initiator of industrial park creation and is used for organisation and preparation of tender holding.
At the request of the applicant, the initiator of the creation provides him with all necessary additional information on industrial park concept, land plot and objects, located on it.
4. The bidding to participate in tender shall be submitted within 30 days from the day of its proclamation.
The bidding to participate in tender shall contain the following data:
1) full name of applicant, his location;
2) industrial park business-plan;
3) information that confirms the capability of the applicant to provide appropriate operation of an industrial park, presence of experience, possibilities of technological and organisational providing of such activity;
4) other information, provided by the terms of the tender.
5. The biddings, documents and materials, presented by the applicants, are examined within 30 days from the last day, determined to submit the biddings.
Tender commission considers the biddings, presented by the applicants, admitted to the tender, documents and materials with proposals on the conditions of creation of the industrial park, determines their compliance with the conditions of the tender, prepares conclusions on determination of the best conditions for the creation and operation of industrial parks.
6. The biddings to participate in tender, received by the initiator of the creation after the deadline for submission, are not accepted for considering.
7. The winner of the tender is the applicant who proposed the best conditions for the creation and operation of the industrial park in accordance with the terms of the tender.
8. If the bidding for participation in the tender was received from only one applicant, he may be recognised as the winner of the tender, given that the implementation of the conditions set by the initiator of the tender, and the tender is considered to have taken place.
9. By virtue of the conclusions of the tender commission, the initiator of the creation within ten days from the last day set for consideration of biddings, decides on the winner of the tender.
10. Notification about the determination of the tender winner is sent to the winner not later than five days from the day the decision was made.
11. The initiator of the creation shall conclude a contract with the winner of the tender on creation and operation of the industrial park after all the terms of the agreement have been agreed, but not later than ten working days from the date of determination the winner of the tender.
Article 20. Confidentiality of tender proposals
1. Information contained in tender proposals of applicants regarding the determination of management company for creation and operation of industrial park, is considered to be confidential and is not subject to disclosure to third parties and other applicants.
2. The results of evaluation of tender proposals of the applicants are not considered to be the subject to disclosure before concluding the contract on creation and operation of an industrial park, except the cases, provided by the Law.
 
Section V
CONTRACT ON CREATION AND OPERATION OF AN INDUSTRIAL PARK
Article 21. Concluding and period of the contract on creation and operation of an industrial park
1. Contract on creation and operation of an industrial park shall be concluded between the initiator of the creation and a legal entity selected in accordance with this Law, which after this agreement being signed acquires the status of a management company.
2. Period of the contract on creation and operation of an industrial park is established within the scope of the period, for which the industrial park was created.
3. Period of the agreement can be changed with the consent of the parties within the period of time, for which the industrial park was created. After the expiration of contract period, it can be prolonged for the period, defined by the parties.
4. The form of typical contract on creation and operation of an industrial park is approved by the central executive authority, which ensures the formation and implementation of state investment policy.
Article 22. Significant terms of the contract on creation and operation of an industrial park
1. Significant terms of the contract on creation and operation of an industrial park are the following:
1) scope of the agreement;
2) period of the contract;
3) cadastral numbers, location and size of land plots on which the industrial park was created;
4) procedure and terms of industrial park arrangement;
5) procedure and terms of scientific activity performance within the scope of industrial park;
6) procedure and terms of applicants involvement;
7) procedure and terms of providing the rights to the applicants regarding the land plots and objects within the industrial park;
8) procedure and terms of output of services and rights to use engineering and transport infrastructure;
9) procedure and terms of insurance by the management company of the assets of the initiator of creation, received for use;
10) legal regime of property, created by the management company within the industrial park as well as property given for use that is the property of the initiator of the creation;
11) content and procedure for reporting by the management company to the initiator of the creation and the competent government authority;
12) procedure of coming into effect of this contract from the date if its signing.
2. The contract on creation and operation of an industrial park can be amended with the mutual consent of the parties.
3. Reorganisation of the management company-legal entity is not a reason for the dissolution of the contract on the creation and operation of an industrial park.
4. Integral parts of the contract on creation and operation of an industrial park are the following:
1) the decision to create an industrial park;
2) industrial park concept;
3) industrial park business-plan.
Article 23. Termination of the contract on creation and operation of an industrial park
1. The contract on creation and operation of an industrial park shall be terminated in case of period expiry, for which it was concluded and in case the parties did not conclude an agreement on its extension within the period, for which the industrial park was created.
2. The contract on creation and operation of an industrial park shall be terminated ahead of schedule in case of the following:
1) essential breach by one of the parties of its obligations under the contract;
2) liquidation of the management company by means of court decision, including with the recognition of its bankruptcy.
3. In case of termination of the contract on creation and operation of an industrial park, the management company is obliged to return to the initiator of the creation the land plots not alienated to the property of the participants, as well as objects of ownership on the terms specified in the contract. If the management company has allowed damage to the land plot of the initiator of creation, aggravation/destruction of engineering and transport infrastructure and/or other property of the initiator of creation located within the industrial park, it is obliged to reimburse him for damages in case it is proved that it happened in the result of actions or inactions of this company.
4. In case of termination of the contract on creation and operation of an industrial park within the scope of the period for which the industrial park was created, the initiator of the creation shall choose a management company in accordance with this Law.
5. In case of before time termination of the contract on the creation and operation of the industrial park after signing a new contract, the management company is obliged within five working days to sign contracts on economic activities within the industrial park with all participants on terms that do not worsen the situation of participants compared to previous contracts.
6. In the period between the day of termination of the contract on creation and operation of an industrial park and the day of signing contracts between the management company and participants on economic activities within the scope of industrial park, the status of participants of the industrial park remains unchanged.
Article 24. Acquisition and loss of the status of the management company of the industrial park
1.	Legal entity shall gain the status of the management company from the day of concluding the contract on creation and operation of an industrial park, of which the initiator of the creation must notify the competent government authority in writing within three working days.
Information on gained status of a management company of an industrial park included in the Register of Industrial Parks shall be entered by the competent government authority into the Register of Industrial Parks and posted on its official website no later than three working days after receiving such notification from the initiator.
2.	Legal entity lose the status of the management company from the day of termination of contract on creation and operation of an industrial park, which the initiator of the creation is obliged to notify the competent government authority within the same day. Information on the loss of legal entity status of the management company of an industrial park included in the Register of Industrial Parks shall be entered by the competent government authority into the Register of Industrial Parks and posted on its official website no later than one working day after receiving such notification from the initiator.
Section VI
FUNDAMENTAL RIGHTS AND RESPONSIBILITIES OF THE INITIATOR OF CREATION, MANAGEMENT COMPANY OF THE INDUSTRIAL PARK, RESPONSIBILITIES OF THE GOVERNMENT AUTHORITY
Article 25. Rights and responsibilities of the initiator of industrial park creation
1. The initiator of the creation has the right:
1) to carry out the control over the compliance by the management company with the terms of the concluded contracts;
2) to render management company the right for the arrangement of the industrial park and/or control (operation) of the objects located within the industrial park;
3) require from management company the observance of industrial park concept and fulfillment of the terms of contracts concluded with the initiator of creation;
4) obtain every six months reports from the management company on the operation of the industrial park;
5) request from the management company the elimination of breaches committed by it in the process of industrial park operation;
6) require from the management company the compensation in case of aggravation of state of objects or damage to the land plot of the industrial park, which occurred as a result of actions or inaction of the management company;
7) to repurchase the property of the management company within the industrial park in case of early dissolution of the contract on the creation and operation of the industrial park as a matter of priority;
8) on the request of the management company to perform the actions in order to expand the limits of the industrial park, if it is impossible to place new participants within the scope of existing territory;
9) to transmit to managment company or participants for lease (sublease), alienate the objects (parts of objects) of real estate within the scope of an industrial park.
2. The initiator of the creation is obliged:
1) to arrange the industrial park in accordance with the terms of the contract on creation and operation of the industrial park;
2) to provide management company and/or participants with the right on land plots, existing objects of engineering and transport infrastructure and other objects, located within the scope of the industrial park;
3) preserve a trade secret of the management company;
4) do not interfere into current economic actions of the management company and participants;
5) consider proposals of the management company regarding the providing of consent to make integral improvements to his property, transferred to the management company for use;
6) to bring about control over preserving the industrial park concept;
7) in case of absence of management company to feed every six month reports to the government authority on the results of the industrial park operation;
8) when concluding a contract on creation and operation of the industrial park to provide in its terms the use in activities related to the creation and operation of an industrial park, employees-citizens of Ukraine, including those dismissed in connection with the liquidation of a state or municipal enterprise, the property of which is given for the use of the management company.
3. Initiator of the creation possesses also other rights and obligations, provided by the contract on creation and operation of the industrial park and legislation.
Article 26. Rights and obligations of the industrial park management company
1. Management company has the following right:
1) to bring about economic actions in accordance with the legislation taking into consideration the peculiarities, provided by this Law;
2) taking into consideration the requirements of the land legislation to transmit to the participants in sublease the leased land plot or its part within the industrial park with the right of building;
2-1) to transmit to participants for lease (sublease), alienate objects (parts of objects) of real estate within the scope of industrial park in accordance with the legislation;
3) to create conditions for connection (access) of participants to engineering networks and communications;
4) to request the dissolution of the contract in case of breach of contract by the initiator of creation and compensation of the losses caused by non-fulfillment of contract terms;
5) to extend the period of the contract in case of fulfillment of its terms;
6) to receive payment for manufactured goods (works, services) in accordance with the terms of the contract;
7) to involve the third parties on the contract basis to perform the works and output the services within the scope of industrial park;
8) to obtain every six months reports from the participants on the fulfillment of the contract terms, unless otherwise provided for by the contract;
9) to initiate the determination of the issue regarding the expanding of industrial park limits, in case, if it is not possible to place new participants within the existing territory;
10) to receive the documents of permits personally or on behalf of the participants, the approval of executive authorities, local authorities, as well as providing the construction of the objects of production appointment, other objects, necessary for carrying out the economic activity within the industrial park, represent the interests of the participants in relation with state authorities, enterprises, establishments and organisations.
2. Management company is obliged:
1) to execute the terms of the contract on creation and operation of the industrial park;
2) to perform the industrial park arrangement in accordance with the terms of the contract on creation and operation of the industrial park;
3) to ensure the execution of industrial park business plan;
4) to involve the participants of industrial park and conclude necessary contracts with them;
5) to receive the permits and approvals from state authorities, local authorities on behalf of the initiator of the creation as well as to perform the construction of objects of production appointment, other objects, necessary to perform economic activity within the scope of industrial park, represent the interests of the participants in relation with regulatory authorities, services, enterprises, establishments and organsations;
6) to apply for approval of integral improvements of property, transferred by the initiator of creation for the use of management company;
7) to keep in proper conditions the land plot transfered under the relevant contracts, engineering and transport infrastructure and other objects, located within the industrial park and provide appropriate conditions for their use;
8) after expiration of the period for which the contract was concluded, to transfer the land plot together with infrastructure objects, which are located on it, to the initiator of the creation, unless otherwise provided for the contract;
9) to feed every six months the reports on operation of industrial park to the initiator of the creation and competent government authority;
10) to preserve a trade secret of the initiator of creation.
3. Management company has also other rights and obligations, provided by the contract on creation and operation of an industrial park and legislation.
Article 27. Powers of competent government authority
1. Competent government authority:
1) every six months obtains from the management company and publishes on its official website reports on the results of the industrial park in the manner and form approved by the central executive authority that ensures the formation and implementation of state investment policy;
2) appeals to the public authority, enterprises, establishments and organisations to solve the issues related to the creation and operation of industrial park;
3) provides favorable conditions for creation and operation of industrial park;
4) maintains the Register of industrial parks;
5) performs the monitoring of industrial parks operation, develops the Strategy for the development of industrial parks;
6) provides information and consulting support to the initiators of the creation and managment companies and otherwise promotes the involvement of the participants;
7) provides the access to the public information, related to the activity of industrial parks and provides information support to potential participants on issues within its competence;
8) informs central executive authority that ensures the formation and implementation of state investment policy, central executive authority that implements state tax policy, central executive authority that implements state customs policy, relevant local state administrations and local self-government about initiators, management companies and participants of industrial parks in the cases provided by this Law;
9) assures the providing of management companies and initiator of the creation-business entities at the expense of funds provided by the State budget of Ukraine, funds on a non-refundable basis for the construction of industrial parks, provides compensation for connection costs and connection to engineering networks in accordance with the procedure established by the Cabinet of Ministers of Ukraine;
10) assures the provision of participants in industrial parks at the expense of funds provided by the state budget, full or partial compensation of interest rates on loans, funds on a non-refundable basis for economic activities within the industrial park in the manner prescribed by the Cabinet of Ministers;
11) by the expense of funds provided by the law on the State Budget of Ukraine, provides funding for construction, reconstruction, repair of engineering and transport infrastructure for the creation and operation of industrial parks, as well as the arrangement of industrial parks in the manner prescribed by the Cabinet of Ministers of Ukraine;
12) analyzes and summarizes international experience in ensuring the functioning of industrial parks and attracting investment;
13) provides by April 1 of the current year the publication on its official website of generalized and in the context of individual industrial parks information on the state of their operation.
2.	Government authority also performs other powers, provided by the law.
Government authority has the right to establish permanent or temporary advisory, consultative and other subsidiary entities and / or to involve in the prescribed manner enterprises, institutions, organizations to support the initiators, management companies and participants of industrial parks in the following areas:
1)	development of short-term and long-term plans for the development of industrial parks;
2)	ensuring the establishment of cooperation with international financial organizations, governmental and non-governmental organizations of foreign countries on attracting financial resources for the implementation of industrial parks innovation and investment projects;
3)	assistance in the development (amendments to) the concept of the industrial park;
4)	assisting the initiators of the creation of industrial parks and management companies in attracting potential participants to industrial parks;
5)	providing consulting support to the initiators of the creation of industrial parks, management companies, participants of industrial parks in the field of business plan development and attraction of funding sources;
6)	assistance in organizing scientific, scientific-practical conferences, educational and informational events (exhibitions, seminars) on the activities of industrial parks;
7)	assistance in the implementation of other measures provided in the Strategy of Development of Industrial Parks.
3. Formation of state policy regarding the creation and operation of industrial parks, is performed by the central executive authority, which provides the formation and implementation of state investment policy.
4. Implementation of state policy regarding the creation and operation of industrial parks is carried out by government authority.
Section VII
ECONOMIC ACTIVITY WITHIN THE SCOPE OF AN INDUSTRIAL PARK
Article 28. Terms of performing economic activity within the scope of industrial park
1. The initiator of the creation, management company and participants shall perform their economic activities in accordance with Civil Code of Ukraine, Economic Code of Ukraine, Tax Code of Ukraine, Land Code of Ukraine, other legislative acts as well as provisions of this Law, industrial park concept, approved by the initiator of the creation, contract on creation and operation of an industrial park, contract on economic activity performance within the scope of an industrial park.
Article 29. Obtaining the status of the industrial park participant
1. The subject of economic activity shall obtain the status of the participant provided that the following two criteria are complied:
1) concluding the contract on performing economic activity within the scope of industrial park with the management company;
2) obtaining the right for the land plot on the basis and at the order, set by the Land Legislation of Ukraine and/or for the other object (part of the object) of real estate within the scope of industrial park.
2. Management company is obliged within three working days to inform in writing competent government authority regarding the obtaining by business entity the status of the participant and to make appropriate record in the list of participants. In case of change activities or owner by the participant, the participant must notify the management company of the industrial park within five working days.
3. If industrial park is included in the Register of industrial parks, competent government authority is obliged within three working days from the moment of receiving an appropriate notification from the management company, to inform in writing central executive authority that performs state tax policy, central executive authority that performs state customs policy and relevant local state administrations about obtaining the status of the participant by the business entity.
4. Information about the obtaining by an economic entity of the status of a participant in an industrial park included in the Register of Industrial Parks shall be entered by the competent government authority in the Register of Industrial Parks and posted on its official website no later than three working days.
Article 30. Contract on performing economic activity within the scope of industrial park
1. Contract on performing economic activity within the scope of industrial park is concluded between the management company and the business entity, which is intended to obtain the status of industrial park participant.
2. Essential terms of the contract on performing economic activity within the scope of an industrial park are the following:
1) kinds of activity, works, services, which are carried out in accordance with terms of contract on performing economic activity within the scope of industrial park;
2) predominant use of labour of employees-citizens of Ukraine;
3) conditions, capacity and procedure of creation and improvement of engineering-transport infrastructure objects and other objects at the land plot of the participant;
4) period of contract;
5) investment obligations of the participant;
6) finance relations of the parties;
7) responsibility for not performing of the obligations by the parties;
8) procedure of prolonging and termination of contract on performing economic activity within the scope of an industrial park;
9) rights and obligations of the parties;
10) procedure of disputes solving arising between the parties.
3. Objects of engineering and transport infrastructure of industrial park and other objects, located within the scope of industrial park, which are granted to management company for use (control), are not given to property of participants.
4. The participant does not have a right to transmit to the third parties its own rights and/or obligations in accordance with the contract on performing economic activity within the scope of industrial park.
5. The contract on performing economic activity within the scope of industrial park is terminated in case of period termination, for which it was concluded, unless the parties have agreed otherwise.
6. The contract can be terminated ahead the schedule in the following cases:
1) essential breach by one of the parties of its obligations in accordance with the contract ;
2) liquidation of the participant;
3) liquidation of the management company.
7. In case of liquidation of the management company, the status of the participants remains the same until the signing of the contracts on performing economic activity within the scope of an industrial park between new management company and participants within the period, for which the industrial park was created.
Article 31. Lose of industrial park participant status
1. Business entity shall lose the status of the industrial park participant from the day of contract termination, concluded with management company, on performing economic activity within the scope of an industrial park and/or termination of the rights on land plot and/or all other objects (parts of objects) of real estate within the scope of an industrial park.
The business entity loses the status of a participant in the industrial park in case of violation of the requirements established by this Law.
The status of the participant is preserved, in case when the new contract on performing economic activity within the scope of an industrial park is concluded by this participant in connection with the termination of the contract on creation and operation of industrial park, as well as in case of liquidation of the management company.
2. Management company is obliged within one working day from the day of loss of the status of the participant by business entity to inform competent government authority in writing about it and to make appropriate record in the list of industrial park participants.
3. If industrial park is included to the Register of industrial parks, competent government authority is obliged within one working day from the moment of receiving appropriate notification from the management company, to inform in writing central executive authority, which performs state tax policy, central executive authority, which performs state customs policy and relevant local state administrations about the loss the participant status by the business entity.
Information about the loss of the status of a participant in an industrial park included in the Register of Industrial Parks shall be entered by the competent government authority in the Register of Industrial Parks and posted on its official website no later than one working day after receipt of such notification.
4. Business entity, which has lost the status of participant, performs its economic activity, as well as within the scope of an industrial park, on the general basis.
5. The loss of the participant status by the business entity does not restrict his rights to obtain such a status in the future, but not earlier than in six months, under conditions of compliance with the requirements of this Law.
Article 32. Legal regime of property of economic activity participants within the scope of an industrial park
1. The objects of infrastructure, created by the management company within the scope of an industrial park, belong to management company on the right of ownership, unless otherwise provided for the contract on creation and functioning of industrial park. Use of such objects is carried out in accordance with the contract on performing economic activity within the scope of an industrial park between the management company and the participant.
2. In case of alienation of the land plot into the property of the participant, the infrastructure objects located on it shall not be transferred to the property of the participant, unless otherwise provided for the contract on creation and operation of an industrial park.
3. In case of termination of industrial park activity, the legal regime of the property of the initiator, management company, participants of an industrial park is determined in accordance with the requirements of the legislation and the contract on the creation and operation of an industrial park.
Article 33. Accounting and reporting of the participants of economic activity within the scope of an industrial park
1. Business entities, that receive state support in accordance with this Law, are obliged to keep separate accounting and tax accounting of economic activity within the industrial park.
Section VIII
GOVERNMENT INCENTIVE OF INDUSTRIAL PARKS
Article 34. State incentive for the arrangement and functioning of industrial parks
1. State incentive of industrial parks arrangement and functioning can be carried out at the expense of state and local budgets and from other sources not prohibited by law.
2. Competent government authority, the Council of Ministers of the Autonomous Republic of Crimea, local state administrations, executive authorities of relevant local councils in the manner prescribed by law, annually submit proposals to the draft of State Budget of Ukraine and draft decisions on relevant local budgets for financial support of industrial parks.
3. In order to create and operate industrial parks for management companies, initiators of creation - business entities and participants of industrial parks at the expense of state, local budgets and other sources not prohibited by law:
1) full or partial compensation of the interest rate on loans for the arrangement and / or implementation of economic activities within industrial parks in the manner prescribed by the Cabinet of Ministers of Ukraine;
2) funds are provided on a non-refundable basis for the arrangement of industrial parks and / or ensuring the construction of related infrastructure (highways, communication lines, heat, gas, water and electricity, utilities, etc.), necessary for the creation and the functioning of industrial parks in the manner prescribed by the Cabinet of Ministers of Ukraine;
3) compensation of expenses for connection and connection to engineering and transport networks is carried out in accordance with the procedure established by the Cabinet of Ministers of Ukraine;
4) tax and customs incentives are provided in accordance with the legislation.
Article 35. {Article 35 has been excluded }
Article 36. {Article 36 has been excluded }
Section IX
LIQUIDATION OF INDUSTRIAL PARKS
Article 37. Reasons for industrial parks liquidation
1. Industrial park can be liquidated:
1) no contract on creation and operation of an industrial park has been concluded within two years from the date of the decision to create it, except in the cases, specified by the law;
2) economic activity is not carried out by its participants during three years within the scope of an industrial park.
Article 38. The procedure of industrial parks liquidation
1. The decision about industrial park liquidation is made by the initiator of creation.
2. Liquidation of an industrial park is not a reason for management company liquidation or its participants liquidation, they can continue their activities as business entities on general basis.
3. Liquidation of management company of state or municipal property is carried out in the manner, defined by the legislation.
4. In case of industrial park liquidation, rights for land plots not given to the property of management company or participants, are transferred to the initiator of the creation. 
Article 39. Referral of disputes to international commercial arbitration
1.	Disputes arising from civil and commercial legal relations, including contractual legal relations, by agreement of the parties may be referred to international commercial arbitration or arbitration in accordance with the law.
2.	The parties of this dispute may be the initiator of the industrial park (except for public authorities, local governments, which in accordance with the Constitution of Ukraine exercises ownership of land on behalf of the Ukrainian people and is empowered to dispose of land), management company or industrial park participant.
…

The President of Ukraine

21 June 2012 
No 5018-VI