Investor support law is a positive signal to stimulate economic development — Igor Petrashko

Yesterday, the Verkhovna Rada of Ukraine adopted in the second reading the Law on state support of investment projects with significant investments in Ukraine, initiated by the President of Ukraine.

«We are grateful to the President of Ukraine and People’s Deputies for the adoption of this important law. This is a really positive signal for foreign and Ukrainian investors. The new mechanism for supporting investors will help attract investment in industries with high added value, create high-paying jobs, integrate into global supply chains and increase the competitiveness of the Ukrainian economy in the international market», — said Igor Petrashko, Minister of Economic Development, Trade and Agriculture of Ukraine.

The law defines the organizational, legal and financial principles of state support for investment projects with significant investments in order to attract significant investments to Ukraine, create new jobs, stimulate economic development of regions and increase the competitiveness of Ukraine’s economy.

The law enshrines the status of a state institution, which includes investment managers and is authorized by the Cabinet of Ministers to accompany investors in the process of preparation and implementation of investment projects with significant investments.

The law stipulates that state support may be provided to investors in the form of tax benefits (exemption from corporate income tax and duties on import of new equipment into the customs territory of Ukraine), granting the right to use a land plot to implement an investment project with rent to be paid under special conditions, as well as providing adjacent infrastructure facilities (highways, communication lines, heat, gas, water and electricity supply facilities, utilities, etc.) through the construction/reconstruction of such infrastructure at the expense of the state.

It is stipulated that the total amount of state support should not exceed 30% of the amount of investment in a project.

The bill also defines the requirements for investment projects and investors who can receive state support. It is estimated that the amount of investment in a project should exceed the amount equivalent to 20 million euros. The project is to be implemented on the territory of Ukraine in the spheres of processing industry (except for the production and circulation of tobacco products, ethyl alcohol, cognac and fruit, alcoholic beverages), including in the field of mineral processing (except for coal and lignite, crude oil and natural gas), waste management, transport, warehousing, postal and courier activities, logistics, education, health, arts, culture, sports, tourism, and recreation.

In the process of implementing the investment project, at least 80 jobs should be created with an average salary of employees at least 15% higher than the average salary for the relevant activity in the region where the project is implemented for the previous calendar year. 

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