Robinson Patman Law Firm takes part in draft laws development to create incentives for industrial parks in Ukraine. Supporting industrial parks projects is among Robinson Patman's priorities.
Over the past year, there have been positive changes in Ukraine in terms of attracting foreign capital, in particular, the Law ‘On investment nannies’ and related changes to the tax and customs codes were adopted. The State Fund for Regional Development has started financing some industrial parks' infrastructure. A number of requests have been received from private investors for industrial parks development.
The prospects for the growth of industrial parks in Ukraine are colossal. Our country can become attractive to investors due to its geographic location, natural and labor resources and investment potential. Taking into account the fact that many developed countries are already ‘oversaturated’ with investments, Ukraine, with proper state policy, can become an attractive investment platform.
The Law on Investment Nannies does not solve the problem of attracting investments to industrial parks, since in accordance with this law, state support is provided only to investment projects with a total investment of 20 mln. euro or more. At the same time, the majority of potential participants are ready to invest in Ukrainian industrial parks from 3 to 10 mln. euro (per project).
For the successful development of industrial parks in Ukraine, several tasks are needed to be solved. In particular, effective tax and customs incentives should be created (for projects with an investment of up to 20 mln. euro) in combination with a developed infrastructure and compensation for the cost of connecting to the electricity networks, as well as difficulties at the stage of creating a park should be eliminated.
Dmytro Vidsota, managing partner of Robinson Patman Law Firm: ‘Ukraine has sufficient potential to become a regional leader and a ‘magnet’ for investments. World experience shows that this can be achieved by creating attractive and competitive conditions for industrial parks to work with quality management companies. Successful parks attract a significant number of investors, including foreign ones, show high occupancy rates, good financial results of their activities and socio-economic impact. Now in some countries, industrial parks generate up to 30% of GDP.
World experience shows that industrial parks make the most of their logistics and transport advantages. At the same time, such parks do not just develop production, they develop innovative production, create a culture of smart industrialization.
Creating incentives for industrial parks is a priority for our state. On April 15th, 2021, the Verkhovna Rada adopted the draft law #4416-1 in the first reading, which provides for some incentives to attract investment in industrial parks at the expense of the State Budget of Ukraine – compensation for 50% of the cost of connecting to the power grids, partial compensation of interest on bank loans and investments in production facilities during the first 3 years. This is not the last draft law in terms of creating incentives for industrial parks, which is to be considered by the Verkhovna Rada of Ukraine this year’.
To recall that within the framework of the presidential program in Ukraine high-tech development projects are being implemented, in accordance with which ecosystems of industrial parks in each region of the country are planned to be created.
Robinson Patman Law Firm specializes in such practices as international trade, antitrust and competition law, government relations.
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