Israeli investments in Ukrainian IT sector going to increase further to the law on DIIA City

Israeli Ambassador to Ukraine Michael Brodsky expects the growth of Israeli investments in the IT sector of Ukraine after the adoption of the law on Diia City. “I believe that after the adoption of the law on Diia City new investments may come to Ukraine. We are already talking about a deeper participation of Israeli capital, Israeli companies in the IT market in Ukraine, as there are prerequisites for this. Now, together with the entry into force of Diia City, a legislative and tax base is being created”.

According to the Ambassador, services related to the IT sector may also be included in the updated free trade agreement (FTA), the preparation of which will start in 2022.

The IT sector is one of the main sectors of cooperation between Israel and Ukraine in recent years, as over half of the outsourcing of the Israeli high-tech today falls on Ukraine.

In Ukraine, there are 30,000 or 40,000 programmers for Israeli companies.

Michael Brodsky, Israeli Ambassador to Ukraine

“In other words, imagine that each of these programmers earns on average $3,000 to $4,000 a month at least, or even much more. But even if we take the minimum wages, it turns out that multiply 30,000 or 40,000 by $3,000 is the Israeli contribution to the Ukrainian economy, the contribution of Israeli companies,” Brodsky said. “This is a Ukrainian contribution to the economy of our country, since Israel is sorely lacking in programmers. Israeli high-tech is the locomotive of our economy. Income to the state treasury from high-tech is one of the most serious components of the Israeli national budget today. Therefore, if there are people in Ukraine who can help Israeli companies to fulfill their task, then that is great. This brings our countries closer together, and this is an absolutely mutually beneficial situation”.

According to him, this direction is one of the basic in Ukrainian-Israeli cooperation, along with agriculture, irrigation and medicine. Brodsky said the company Netafim, which develops projects and sales of Israeli technologies in drip irrigation. “Representatives of several Israeli companies recently visited the regions, and we hope that there will be a continuation, as the topic is relevant for both countries. We feel interest from Ukraine, the president spoke about this when he met our president here,” the Ambassador in Kyiv concluded.