The signing of the first investment agreements could be expected at the end of the current or at the very beginning of the next year
As part of the Law No. 1116-IX “On State Support of Investment Projects with Significant Investments in Ukraine”, the Ukrainian government’s investment promotion office, UkraineInvest, has received over 70 requests for state support, of which 26 projects worth a total of $1.9 billion are highly likely to be implemented.
Sergiy Tsivkach, Executive Director of UkraineInvest, shared this insight in his interview for GMK Center.
The sectoral structure of investment projects that claim state support is quite diversified.
“Processing of agricultural products is the leading group of applicants. This sector is represented by 9 projects estimated at $534 million. In general, the processing industry and manufacturing presented another 9 projects worth $516 million. It is important for us to show that Ukraine is growing from a resource colony into an economy that processes products domestically and retains added value here. 5 logistics projects estimated at $531 million. The transport and tourism sectors are represented by projects worth $138 million,” says Sergiy Tsivkach.
Among the applicants there are companies from Lithuania, Switzerland, Mexico, China, Turkey, Cyprus, Poland, Ireland and Ukraine. About half of the projects originate from Ukraine.
Interestingly, the Black Iron’s project is not included in the general list of applicants. UkraineInvest offers individual support to investment projects worth $500 million or more. The amount of investment at all stages of the Black Iron’s project totals some $1.2 billion.
According to Sergiy Tsivkach, at the first phase, UkraineInvest expects to raise over $300 million, and $1.5–2 billion per annum every next year. The signing of the first investment agreements could be expected at the end of the current or at the very beginning of the next year.
As reported earlier, in early August, the Government adopted all by-laws required for the implementation of the Law No. 1116-IX. Hence, potential investors can submit their applications for the call of proposals.
The Law of Ukraine “On State Support of Investment Projects with Significant Investments in Ukraine” provides for support of investment projects exceeding €20 million. Another mandatory requirement for projects is to create at least 80 jobs with a salary 15% higher than the region’s average.
Earlier, GMK Center has already analyzed the essence of the Law. Specifically, the project for the construction of a processing plant by a Canadian company, Black Iron, could be eligible for preferences under the Law.