The Ministry of Economy, Environment, and Agriculture of Ukraine today decided to provide state incentives to two management companies of industrial parks for a total of 81 million hryvnias.
Funding will go to:
- Industrial Park “VinIndustry” (Vinnytsia region) — 40.3 million hryvnias for major road repairs leading to the boundaries of the industrial park.
- Industrial Park “Ternopil” (Ternopil region) — 40.7 million hryvnias for the construction of electrical networks within the industrial park’s territory.
With today’s decision, five industrial parks have already received state support this year to implement seven projects totaling 344.5 million hryvnias.
The program “State Incentives for the Creation of Industrial Parks” provides for the development of engineering and transport infrastructure in industrial parks on a co-financing basis, including roads, electrical networks, water supply, sewage, gas supply, and other technical solutions necessary to launch production.
“State incentives for industrial parks are an example of the ‘Made in Ukraine’ policy working not just as a slogan but as a real tool for development. Investments in industrial infrastructure create the foundation for production, jobs, and taxes. Every hryvnia allocated from the state budget generates 5–6 hryvnias of private investment. In this way, industrial parks become an important driver of the country’s economic strengthening,” said Vitalii Kindrativ, Deputy Minister of Economy, Environment, and Agriculture of Ukraine.
State support involves co-financing at a 50/50 ratio for the creation of engineering and transport infrastructure and connection to electrical networks, up to 150 million hryvnias per industrial park. For de-occupied territories, a special co-financing mechanism applies at an 80/20 ratio.
The Ministry of Economy implements the program in cooperation with Ukreximbank, Oschadbank, Ukrgasbank, and Sense Bank.
Participants in industrial parks also benefit from several fiscal incentives, including:
- Exemption from import duties and VAT on production equipment
- Exemption from corporate income tax for 10 years if profits are reinvested
- The right of local governments to reduce property tax and land fees to zero
Currently, 110 industrial parks are registered in almost all regions of Ukraine.
Industrial parks are a key part of Ukraine’s Made in Ukraine policy, aimed at creating conditions to expand domestic production, attract investment to the real sector, and increase non-commodity exports.
