Ukraine has defined the terms of state support in implementation of projects with significant investments
Recently, President of Ukraine Volodymyr Zelenskyy signed the Law No. 1116-IX “On the State Support of Investment Projects with Significant Investments in Ukraine”, which was adopted by the Verkhovna Rada of Ukraine on December 17, 2020.
The purpose of the adoption of this law is to restore investment activity in Ukraine, create new jobs, stimulate the economic development of regions and territorial communities of the state.
The law provides for state support to Ukrainian and foreign investors who will implement investment projects with a total investment of 20 mln EUR or more in the following industries:
– processing and mining industry,
– waste management,
– transport and logistic,
– education and science,
– art and culture,
– tourism and recreation.
Also, this legislative act defines the requirements for number of new jobs created and the minimum wage.
The total amount of state support should not exceed 30% of the all investments of the project. State support for investment projects can be provided in the form of:
– tax incentives,
– providing objects of related infrastructure,
– granting the preferential right to land use of land plots of state or municipal property for investment projects implementation.
In order to secure the investor’s guarantees, the law envisages conclusion of a direct agreement between the investor and Ukrainian government and determines its basic conditions as well.