The political reset in 2019 activated key reforms for economic development and international projects. In particular, land reform, large-scale privatization, development of public-private partnership foundations and concession projects, which have been implemented for the last 3 years.
Thus, the new political course is shaping new business investment opportunities in Ukraine.
The most promising business sectors
- Waste management
- Health care
- Transport, warehousing
- Educational & research projects
- Postal and courier activities, logistics
Ukrainian real estate can also be a profitable investment for foreigners. The coronavirus crisis will definitely affect developers. Especially for those who are "backed up" by the support of banks. They may now tighten requirements for developers in terms of their financing due to their own lack of sustainability. Foreign investors who at this time will enter this area will definitely win.
The agricultural sector became the leader in terms of profitability in the 2021 report.
If we combine this with the new land law and the possibility of privatizing large state-owned enterprises and all the bonuses of the “investment nanny” program, we will see a perfect way of investing in Ukraine.
So how has the legal framework changed and how to invest in Ukraine in 2021?
- Concession - The legal framework was updated back in 2019 so that the law now provides investors and lenders with a transparent and competitive selection system and meets the best EU industry standards;
- Privatization of state and municipal property - In February of this year, the Parliament adopted amendments to the law "On the privatization of state and communal property", which allows auctions for the sale of large privatization objects during the quarantine period.
- ‘Investment nannies’ law - The Investment nanny program, which came into force in 2020, provides a form of cooperation between the investor and the government of Ukraine and the creation of incentives for the investor. To receive the support of a "nanny", the investor will need to conclude an agreement with the government, which will fix the investment period, the list and amount of investment incentives and his obligations regarding the amount of investment, the number of jobs created.
- Industrial parks - The law was adopted in 2020, the Law of Ukraine "On Industrial Parks" was adopted, providing for the introduction of several incentives to attract investment in industrial parks, in particular tax incentives.
Ukraine has changed and the ways and opportunities for how to invest in Ukraine have evolved. The coronavirus crisis made it possible to consider new opportunities and speed up the development of legal conditions aimed at supporting foreign investments. The investment climate has not yet been as favorable as it is today.