This milestone was achieved through the signing of a special investment agreement between the Ukrainian Cabinet of Ministers, LLC “Astarta-Kyiv,” and LLC “Astarta Agro Protein,” paving the way for the construction of a new soybean meal processing plant in the Poltava region.
Key Details of the Agreement
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State-Backed Processing Project
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The soybean meal plant, with a capacity of 500 tons per day, will be constructed by the agro-industrial holding “Astarta.”
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Total investment stands at €76+ million, aimed at modern equipment and technology.
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The new facility is expected to create 110 jobs and deepen industrial soybean processing in the region.
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Launch of “Investment Nanny” Mechanism
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According to the Minister of Economy Yulia Svyrydenko, the government’s “investment nanny” program has finally moved from concept to execution.
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Astarta’s deal is notable for being the first agreement sealed under this framework.
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“I am especially pleased that the first company to receive state support is engaged in the processing industry,” Svyrydenko noted.
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Benefits Under the Investment Program
Under Ukrainian law on projects with significant investments, investors meeting certain criteria (over €12 million) can qualify for a variety of government incentives:
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Duty-Free Import of New Equipment
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Exemption from paying import duty on modern machinery necessary for the project.
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Import VAT Exemption
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Relief from value-added tax on imported equipment used in construction and production.
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Corporate Tax Holidays
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Up to 5 years of exemption from corporate income tax, significantly reducing early-phase financial burdens.
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Reimbursement of Connectivity Costs
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Compensation for the cost of connecting to utilities such as power, gas, water, and transport networks.
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Includes covering costs of newly built substations, pipelines, and other infrastructure essential to get the project running.
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Exemption from Deforestation Fees
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Freed from compensating state authorities for losses in forestry production where applicable.
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Overall Limit on State Aid
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The total of government support can reach up to 30% of the project’s investment.
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Significance for Ukraine’s Economy
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Boost to Local Processing
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By focusing on value-added production rather than just raw commodity exports, Ukraine strengthens its position in global agricultural markets.
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The soybean facility will scale up the availability of soybean meal, an essential ingredient for livestock feed and related agri-business operations.
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Infrastructure & Regional Development
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Construction of the plant will stimulate local supply chains and prompt improvements in regional transport and utility networks.
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As new jobs emerge, higher incomes and increased local consumption further revitalize the Poltava region’s economy.
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Blueprint for Future Investment
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Astarta’s agreement serves as a model for similar projects, signaling to both domestic and international investors that Ukraine is committed to easing administrative hurdles and ensuring investment security.
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Background: “Investment Nanny” Program
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Program Goals
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Launched to attract strategic investors willing to commit at least €12 million into manufacturing, mining, transport, education, medicine, or tourism sectors.
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Seeks to streamline bureaucratic processes and provide dedicated support (“nanny”) for foreign or local investors.
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Recent Developments
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Alongside Astarta’s deal, the Cabinet approved a separate investment project: an “Aquapark” in the Bukovel ski resort area.
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Implementation in multiple economic sectors highlights the program’s versatility.
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Conclusion
The special investment agreement with agro-industrial giant Astarta underscores Ukraine’s readiness to facilitate large-scale investments in high-priority sectors. Through an array of tax breaks, import duty relief, and infrastructure support, Ukraine is positioning itself as an investment-friendly environment. Astarta’s planned soybean meal processing plant, with its strategic location in Poltava, reflects the country’s push for value-added agriculture and stronger domestic industrial potential. As additional agreements come online, Ukraine’s “investment nanny” program could accelerate industrial modernization and job creation, boosting confidence among global investors.
