The Government is launching a mechanism of state support for investment projects with significant investments. Thus, the Cabinet of Ministers has approved the procedure for compensating the cost of the engineering and transport infrastructure facilities built by the applicant/investor with significant investments and compensating the costs of joining and connecting to the engineering and transport networks necessary for the implementation of the project. This is the last regulatory act necessary to launch the investor support. The decision was made at a meeting of the Government on March 15.

“Attracting investments to the economy is a key condition for the reconstruction and development of the country. Today we adopted the last regulatory document necessary for launching the mechanism of state support for projects with significant investments. Investors who are ready to implement projects worth EUR 12 million or more in Ukraine will receive maximum facilitation and support from us in the form of assistance, tax and customs benefits, compensation for the cost of the constructed engineering and transport infrastructure facilities or connection to engineering and transport networks, etc. This year, we provided for UAH 3 billion in the budget to support such investors,” Yuliia Svyrydenko, First Deputy Prime Minister – Minister of Economy of Ukraine, commented.

Investors who plan to implement a project in Ukraine with a cost of EUR 12 million and a duration of up to 5 years in the fields of processing industry, extraction of minerals for further processing or beneficiation, transport, logistics, education, scientific activity, health care, waste management, art, culture, tourism, sports, electronic communications will be able to receive state support.

The provision of state support for the implementation of an investment project with significant investments is preceded by:

• submission of an application by an applicant (a legal entity being a resident or non-resident) to the Ministry of Economy together with relevant documents for the assessment of the project with significant investments;
• carrying out the assessment of an investment project by the Ministry of Economy and providing a opinion on the expediency/impracticability of its implementation and conclusion of a special investment contract or refusal to conclude it;
• conclusion of a special investment agreement, the parties to which are the Cabinet of Ministers, a local self-government authority (if state support is provided by such an authority for the implementation of a project with significant investments), an investor with significant investments, and an applicant.

To get support in the preparation and implementation of an investment project with significant investments, the applicant should contact UkraineInvest for information and advisory assistance.

Investors may receive several types of support from the state, which make up to 30% of the amount of an investment project with significant investments. In particular:

• a preferential right to use land plots of public or municipal property;
• compensation for construction costs of engineering and transport infrastructure facilities and costs for connection to engineering and transport networks;
• tax benefits;
• duty-free import of necessary equipment;
• exemption from compensation for forestry production losses.

The projects should provide for the construction, modernization, technical or technological re-equipment of the relevant investment facilities and the creation of new jobs. The investor needs to create at least:

• 10 new jobs with a salary at least 50% higher than the average salary in the region for the same type of activity;
• or 30 new jobs with a salary at least 30% higher than the average salary in the region for the same type of activity;
• or 50 new jobs with a salary at least 15% higher than the average salary in the region for the same type of activity.