Industrial parks will receive state support through state-owned banks: the first agreement has already been signed

Industrial parks will be able to receive state support through state-owned banks. The first such agreement was signed with Ukreximbank, the Ministry of Economy reported, UNN writes.

Details 

Reportedly, initiators and management companies of industrial parks can now apply for state support in two main areas:

• Obtaining non-repayable financing for the development of industrial parks, including the construction of necessary infrastructure, such as roads, communication lines, and gas, water, and electricity supply systems.
• Compensation for expenses related to connection to utility and transportation networks.

Similar agreements are expected to be signed with two more state-owned banks in the near future.

"Industrial parks are an important component of the Made in Ukraine policy, as they help attract investment in the real sector, develop production facilities and increase the share of processing in the economy. This is an opportunity to attract $3-5 million in investments and create 50-100 jobs per hectare, generating $7-10 million in annual income per hectare. And most importantly, they will contribute to the transition of Ukraine's economy from a raw material-based to a processing one, which, in turn, will contribute to economic growth, as there are no examples of successful raw material states in the world. Therefore, the only possible way for Ukraine is to develop processing," said Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine.

The program for the development of industrial parks, which is part of the state strategy "Made in Ukraine," is intended to stimulate the growth of domestic industry. To achieve this goal, the state budget for 2024 allocates UAH 1 billion.

The main aspects of the program include:

• Providing up to UAH 150 million ($3.8 million) of state support on a co-financing basis, where the state covers 50% of the costs.
• In the de-occupied territories, the state reimburses up to 80% of the costs (maximum UAH 150 million).
• Reimbursement of 50% of the cost of connecting to the power grid up to UAH 150 million.

Criteria for program participants:

• Creation of at least 5000 square meters of production space in the park.
• Involvement of at least two park participants within three years.

The program also offers a variety of benefits and incentives for entrepreneurs and investors, including VAT and customs duty exemptions on new equipment, income tax credits, and support from international organizations. 

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