In recent years, Ukraine’s government has made attracting investments one of its top priorities. As part of this effort, the Parliament of Ukraine adopted the Law “On Amendments to Certain Legislative Acts of Ukraine on Implementation of Investment Projects with Significant Investments”, which came into force on 17 September 2023. The Law expands financial and operational incentives to companies investing at least EUR 12 million, thus contributing to reconstruction and recovery of Ukraine.
The key changes introduced are the following:
- reducing the minimum required amount of investment from EUR 20 million to EUR 12 million, opening the way to state support for a wider range of projects and businesses;
- expanding the list of eligible areas for project implementation, including in the spheres of electronic communications, energy-efficient construction materials, bioethanol production intended for use as a fuel component and others;
- allowing investors to obtain state support for the projects where they have already made up to 30% of their investments within 18 months prior to applying for the state support;
- expanding the list of investment objects by adding fixed assets and fees for connection to heat, gas, water, and electricity networks, as well as engineering communications;
- introducing new forms of state support, such as compensation for the cost of building adjacent infrastructure objects, compensation for expenses for connecting to engineering and transport networks, and an exemption from compensating losses in forestry production.
Due to the amendments introduced by the Law, within 10 business days from the date of its entry into force, the state authorities will return to the applicants all applications that have not been reviewed and for which no special investment agreements have been concluded, in order for the applicants to bring them in compliance with the Law. After introducing the necessary changes, the applicants will be able to re-submit their applications for new consideration.
UkraineInvest remains to be the primary point of contact for companies applying for the state support of projects with significant investments, and more information about the available governmental incentives can be found at the official website of the agency.
CMS will continue to monitor investment developments in Ukraine. For more information on Ukraine’s new state support procedures and investment opportunities, contact your local CMS advisor or local CMS expert: Tetyana Dovgan, Maria Orlyk.
Legislation: Law No. 3311-IX8138 “On Amending Certain Legislative Acts of Ukraine on Implementation of Investment Projects with Significant Investments” dated 9 August 2023.
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