Draft Law on Incentives for Industrial Parks

Tuesday, September 7, 2021
Draft Law on Incentives for Industrial Parks

The Ukrainian government has adopted law No.4416-1 "On Amendments to the Law of Ukraine "On Industrial Parks", aimed at attracting investment in the industrial sector of the economy through the introduction of incentives in industrial parks"

The purpose of the bill is to promote the attraction of direct investment in the creation of new industries through the mechanism of industrial parks to turn them into a driving force of economic and industrial development through the introduction of a number of investment incentives that correspond to current global trends and which will increase the competitiveness of domestic industrial parks.

According to the law, an industrial (manufacturing) park is a territory, defined by the initiator of the creation of an industrial park in accordance with the urban planning documentation, equipped with the appropriate infrastructure, within which the participants of such a park can carry out economic activities in the processing industry, processing of industrial and/or domestic waste (except landfills), as well as scientific and technical activities, information and telecommunications activities on the terms defined by this law.

The bill also provides for full or partial compensation of the interest rate from the budget on loans for the arrangement and conduct of business activities in industrial parks for their participants. Besides, financing on the irrevocable basis of the arrangement of industrial parks, providing the construction of objects of the adjacent infrastructure — highways, communication lines and other communications necessary for the work of such parks is also provided. The bill also provides for the compensation of costs at the expense of the state and local budgets for connection and connection to engineering and transport networks.

The bill in the wording for the second reading also provides that the cabinet shall allocate in the state budget for 2022 at least $74 mln for the norms of the bill.

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