The Government approved the Procedure for the use of funds to support projects with significant investments

The Government has approved the Procedure for the use of funds provided for in the state budget to provide state support for the implementation of investment projects with significant investments (over EUR 12 million). The relevant decision was made at a meeting of the Cabinet of Ministers of Ukraine on April 26, 2024.

"Attracting investment in the economy is a key condition for the country's reconstruction and development. Therefore, we continue to work on creating the necessary tools for their receipt: access to project financing, risk insurance and loan guarantees. Now we are adding state support for investors to this list. Budgetary funds will be used to fully or partially compensate the cost of engineering and transport infrastructure built by the applicant or investor with significant investments, as well as the costs of connection and connection to engineering and transport networks necessary for the implementation of relevant investment projects. That is, if an investor has built a road, conducted water, gas, or electricity to his plant or other investment object, he will be able to receive compensation from the state," explained Yulia Svyrydenko, First Vice Prime Minister of Ukraine, Minister of Economy of Ukraine.

According to her, UAH 3 billion has been budgeted for this program this year. The total amount of support is up to 30% of the investment volume. The state support will be available to investors planning to implement a project in Ukraine worth EUR 12 million or more and lasting up to 5 years in the areas of processing industry, mining for further processing or enrichment, transport, logistics, education, research, healthcare, waste management, art, culture, tourism, sports, and electronic communications.

At the same time, the Government will monitor investors' compliance with the terms of the agreement. If the Ministry of Economy establishes, based on the register of investment projects with significant investments, that the amount of significant investments is less than EUR 12 million, the investor must return the entire amount of compensation received to a special registration account of the Ministry of Economy within one month.

If the state financial control authorities establish that the investor has illegally received compensation or partial compensation, the investor must also return the entire amount of compensation received within one month.

It is worth reminding that in the implementation of investment projects with significant investments, investors may receive several types of support from the state, which amount to up to 30% of the total amount of such an investment project. In particular:

• preemptive right to use state-owned or municipally owned land plots;
• compensation for the costs of construction of engineering and transport infrastructure facilities and costs of connection to engineering and transport networks
• tax benefits;
• duty-free import of necessary equipment;
• exemption from compensation for losses in forestry production.

Projects should include the construction, modernization, technical or technological re-equipment of the relevant investment objects 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.