Ukraine is creating 24 new industrial parks – Natalukha

Since the adoption of the Law "On Amendments to the Law of Ukraine 'On Industrial Parks' (September 1710-IX)" in September, 24 new industrial parks have been established in Ukraine.

Dmytro Natalukha, Chairperson of the Verkhovna Rada Committee on Economic Development, made this statement during the III Forum of Industrial Parks within the Ukrainian Industrial Days 2021, Ukrinform reports.

"Even though the incentives for the development of industrial parks laid down in the updated law aren't yet fully working, the results are already there. Since its adoption in September this year, the country began creating 24 new industrial parks (IP). Somewhere they're already being built, somewhere documentation is being prepared and design is underway, but the fact remains that more than two dozen parks are already in operation in 11 regions of Ukraine," Natalukha said.

According to him, the total declared investments in new projects of individual entrepreneurs amount to UAH 884 million, the total area of ​​parks is 557 hectares.

"If these data are translated into jobs with the United Nations Industrial Development Organization (UNIDO) coefficient, then only these 24 parks can potentially create 28 thousand jobs. Of course, not all parks will be launched quickly, because the resource of state incentives is limited, but the fact that the IP tool works is an accomplished fact, supported by the relevant figures," said Natalukha.

The head of the profile committee is sure that the results will be even bigger when the fiscal incentives provided by the draft laws №5688 and №5689, which have already been put on the agenda of the Verkhovna Rada, also work.

The laws exempt from VAT on new equipment for individual entrepreneurs and exemption from income tax for 10 years.

"I have an inner confidence that these documents will be adopted in the first reading by the end of the year. They will support our principle, which we demonstrate to investors – come and work because it is convenient and profitable, the state will help," said Natalukha.

As reported, 52 industrial parks have been registered in Ukraine to date.

Four of them have residents with operating factories. These are Bila Tserkva Industrial Park (Kyiv Region), Vinnytsia Industrial Park, Solomonovo Industrial Park (Zakarpattia Region), and Korosten Industrial Park (Zhytomyr Region).

According to the optimistic scenario, Ukraine is expected to fully launch 100 industrial parks, among which $100 million will be invested in existing parks in the medium term, and $200 million in new ones. It is expected that the additional amount of attracted investments will reach 15.7 billion dollars.

It is planned that at least UAH 2 billion will be allocated from the state budget each year to finance the construction, reconstruction, operation, and arrangement of individual entrepreneurs. In particular, funds will be allocated to compensate the interest rate on loans for business activities of individual entrepreneurs.