The government has initiated changes to legislation aimed at creating a favorable investment climate

The Cabinet of Ministers of Ukraine approved the project of changes to the legislation, designed to increase the inflow of significant investments into the economy.

The relevant project of amendments to the Law of Ukraine “On State Support of Investment Projects with Significant Investments in Ukraine” was adopted by the Government at a meeting on October 18. The document will be sent for consideration and adoption by the Verkhovna Rada of Ukraine.

“The decision to optimize the law on significant investments was prepared a long time ago and in close cooperation with representatives of Ukrainian and foreign investors. The main goal is to create the most favorable investment climate. Currently, this is especially relevant, given the need to attract investments within the framework of the implementation of the Recovery Plan of Ukraine. The improvement of Ukrainian legislation in this area will undoubtedly increase the interest of investors in our country,” Yuliya Svyridenko, First Deputy Prime Minister – Minister of Economy of Ukraine, said.

In particular, the draft law proposes to expand the areas in which an investment project with significant investments can be implemented. Added:

  • activities in the field of information and electronic communications,
  • real estate transactions,
  • operations in the field of production of energy-efficient building materials, climate equipment and equipment for heating, ventilation, air conditioning, and hot water supply systems.

In order to expand the circle of those involved in the investment process, it is proposed to reduce the size of investments to the investment project, for the implementation of which state support can be provided. If, according to the current norms of the law, the volume of investments should exceed the amount equivalent to 20 million euros, then the project of changes proposes to reduce it to 12 million euros. This will allow not only large enterprises to participate in investing, but also medium ones.

Investors will also be given the opportunity to start implementing the project before concluding a special investment agreement and make investments for pre-project works (preparation of documentation, purchase of land, etc.) in the amount of 25% of the total amount of significant investments.

In addition, the draft law establishes the possibility and time frame for finalizing the documents submitted by the investor and the special investment contract.

We would like to remind you that, according to the Law of Ukraine “On State Support of Investment Projects with Significant Investments in Ukraine”, the state can provide support to such investment projects in the form of:

  • exemption from payment of certain taxes and fees, in accordance with the Tax Code,
  • exemption from import duty taxation of new equipment (equipment) imported for project implementation,
  • securing the preferential right of land use over a plot of state or communal property for the implementation of an investment project with significant investments, etc.

As reported, more than 250 requests were received in the first month since the launch of the Advantage Ukraine investment platform. To date, offers worth more than 400 billion dollars have been prepared and presented to potential investors on the Advantage Ukraine platform.

Source: Ministry of Economy of Ukraine