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The Verkhovna Rada adopted a law to increase investment flow to Ukraine

18/ 12/ 2020
  Yesterday, December 17, the Verkhovna Rada supported the draft law №3760 On state support of investment projects with significant investments. The document stipulates that investment projects worth 20 million euros can receive state support in the form of tax benefits, land lease, infrastructure development. This applies particularly to projects of construction, modernization, technical and/or technological re-equipment of facilities, purchase of necessary equipment and components in such areas as processing, mining, waste management, transport, warehousing, post and delivery activities, logistics, education, scientific and technical activities, health care, art, culture, sports, tourism, resort, and recreation. The total amount of state support can reach up to 30% of the planned amount of investment. Besides, the investor must ensure the creation of 80 new jobs with an average employee salary that is 15% higher than the average salary for the relevant type of activity in the region. In 2019, the volume of foreign direct investment in Ukraine has increased and reached about $ 2.5 billion. However, the EBA Investment Attractiveness Index showed that the assessment of Ukraines business climate worsened in the first half of 2020. Ukraine’s implementation of its obligations under the Association Agreement with the EU and Ukraine’s participation in the European Green Deal raises an additional need to raise funds, as the EBA noted in its official letter to the President and the Verkhovna Rada. We are grateful to the representatives of the Parliament for taking into account the proposals of the Association and we hope to restore the interest of investors in the Ukrainian market as soon as possible, said Svitlana Mykhailovska, EBA Deputy Director for Advocacy. Investors can receive such assistance starting from January 1, 2022.

Yesterday, December 17, the Verkhovna Rada supported the draft law №3760 “On state support of investment projects with significant investments.”

The document stipulates that investment projects worth 20 million euros can receive state support in the form of tax benefits, land lease, infrastructure development.

This applies particularly to projects of construction, modernization, technical and/or technological re-equipment of facilities, purchase of necessary equipment and components in such areas as processing, mining, waste management, transport, warehousing, post and delivery activities, logistics, education, scientific and technical activities, health care, art, culture, sports, tourism, resort, and recreation.

The total amount of state support can reach up to 30% of the planned amount of investment.

Besides, the investor must ensure the creation of 80 new jobs with an average employee salary that is 15% higher than the average salary for the relevant type of activity in the region.

“In 2019, the volume of foreign direct investment in Ukraine has increased and reached about $ 2.5 billion. However, the EBA Investment Attractiveness Index showed that the assessment of Ukraine’s business climate worsened in the first half of 2020. Ukraine’s implementation of its obligations under the Association Agreement with the EU and Ukraine’s participation in the European Green Deal raises an additional need to raise funds, as the EBA noted in its official letter to the President and the Verkhovna Rada. We are grateful to the representatives of the Parliament for taking into account the proposals of the Association and we hope to restore the interest of investors in the Ukrainian market as soon as possible, “said Svitlana Mykhailovska, EBA Deputy Director for Advocacy.

Investors can receive such assistance starting from January 1, 2022.

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