The Verkhovna Rada adopted at the second reading and as a whole a draft law providing for a number of changes regarding the functioning of industrial parks in Ukraine. UNN reports this with reference to the parliamentary session.
Details
Draft Law No. 12117 "On Amendments to Certain Legislative Acts of Ukraine Regarding the Improvement of the Functioning of Industrial Parks" was supported by 270 Members of Parliament.
Under the draft law, the concept of an "eco-industrial park" is introduced—an industrial park within whose territory the initiator of the industrial park's establishment, the management company, participants, and other entities of the industrial park conduct activities in the field of industrial symbiosis, implementing the best available technologies and management methods, and which meets the criteria defined by the Cabinet of Ministers, as well as the environmental, economic, and social requirements established by law.
The procedure for obtaining eco-industrial park status and the specific features of its functioning will be determined by the Cabinet of Ministers.
The very concept of an "industrial park" is also being changed—an area designated by the initiator of the industrial park's establishment in accordance with urban planning documentation and equipped with the relevant infrastructure, within which the initiator of the establishment, the management company, participants, and other entities of the industrial park conduct economic activities.
The document stipulates that economic activities involving the production of excise goods may not be carried out within an industrial park, except for the production of biofuels, the production of biocomponents, the generation and/or storage of electricity, including from alternative energy sources, the production of passenger cars, bodies for them, trailers and semi-trailers, motorcycles, vehicles designed to transport 10 or more people, and vehicles for transporting goods.
Economic activities involving the issuance and holding of lotteries, the operation of gambling, and the cultivation of plants included in the List of Narcotic Drugs, Psychotropic Substances and Precursors may also not be carried out within an industrial park.
The concept of "industrial symbiosis within an industrial park" is also introduced— cooperation on a contractual basis between the initiator of the industrial park's establishment, the management company, participants, and other entities of the industrial park regarding:
- the production, performance, and supply of goods, works, and services, and the exchange thereof;
- the processing of waste generated at some production facilities by others (except for
waste disposal);
- the use of by-products;
- the reuse of water, the treatment of wastewater, and its reuse within the industrial park;
- the combined generation of electric and thermal energy (cogeneration);
- the production and use of energy from renewable energy sources and/or alternative
fuels.
The draft law introduces amendments to the rules for establishing industrial parks on state- and municipally owned land. In particular, the right to establish parks on such land belongs to executive authorities and local self-government bodies that transfer such land into ownership, as well as tenants of state- or municipally owned land plots who meet the requirements for using them to establish an industrial park.
Restrictions are established concerning the establishment, development, and functioning of industrial parks. In particular, the initiators of the establishment of parks may not be persons who:
- are ultimate beneficial owners or participants holding 10% or more of the shares, where such owners or participants are the Russian Federation, Belarus, Iran, or North Korea;
- are legal entities registered in states classified by the Cabinet of Ministers as offshore zones, or legal entities more than 50% of whose charter capital is directly or indirectly owned by legal entities registered in such states;
- are legal entities formed and registered in accordance with the laws of the Russian Federation, Belarus, Iran, or North Korea, except where the assets have been transferred to the management of ARMA in accordance with the procedure established by law;
- are business entities that have economic ties with the aggressor state within the meaning of the Tax Code of Ukraine;
- are included in the Unified State Register of Persons Who Have Committed Corruption or Corruption-Related Offenses;
- are subject to sanctions imposed by Ukraine, the United States and the EU;
The requirements regarding the land plots on which industrial parks may be located are changing. Currently, the area of a land plot or the combined area of adjacent land plots must be at least 10 hectares and no more than 1,000 hectares. The document removes the 1,000-hectare limit, while retaining the requirement that the area of adjacent land plots must be at least 10 hectares.
Also, under the draft law, office premises, financial institutions, marketing and advertising facilities, food service establishments, hotels, dormitories, hostels, dual-use structures, renewable energy facilities and energy storage systems will be permitted within an industrial park.
A list of documents that must be submitted for parks to be included in the Register of Industrial Parks is also being added:
- a copy of the initiator’s decision to establish the industrial park;
- a copy of the industrial park concept;
- information from the State Land Cadastre concerning the land plots and from the State Register of Proprietary Rights to Immovable Property concerning the immovable property located on them (if available);
- the name of the management company and the participants and other entities of the industrial park, as well as an extract or excerpt from the Unified State Register of Legal Entities, Individual Entrepreneurs and Civic Associations (if available);
- a copy of the land plot/plots lease agreement, including all amendments thereto, and an extract from the State Register of Proprietary Rights confirming registration of the lease right to the land plot;
- a copy of the lessor’s decision approving the industrial park concept;
- an extract from the urban planning documentation concerning the territory designated for the establishment of the industrial park;
- a copy of a certificate concerning the operation of the buildings located on the land plot (if available);
- documents confirming the possibility of financing the development and/or operation of the park in accordance with the concept.
In the future, the decision to include an industrial park in the Register will also specify the area of the industrial park.
The list of grounds for removing an industrial park from the Register is also being expanded: if there is no management company after two years; if the area of the land plot or the combined area of the industrial park’s land plots is reduced to less than 10 hectares; if business activities are conducted that may not be carried out within an industrial park; or upon the expiry of the period for which the industrial park was established.
We remind you
The Cabinet of Ministers updated the rules for state incentives so that industrial parks could restore damaged infrastructure more quickly as a result of Russian attacks. The government will cover up to 80% of the cost of restoring the infrastructure.