Parliament adopts presidential law on 'investment nannies'

Parliament adopts presidential law on 'investment nannies'

Ukrinform
The Verkhovna Rada, Ukraine's parliament, has adopted presidential law No. 3760 "On State Support for Investment Projects with Significant Investments."

According to Ukrinform, 252 MPs voted for the document at second reading and in its entirety at a parliament meeting on Thursday, December 17.

"The draft law is designed to stimulate the attraction of strategic investors into Ukraine's economy, increase Ukraine's investment attractiveness, and to increase the competitiveness of Ukraine's economy through the introduction of state support for large-scale investment projects," the explanatory note to the law reads.

The law defines the forms and tools for providing state support to investment projects with significant investments.

The document provides for the consolidation of the status of a state institution, which includes investment managers and which is authorized by the Cabinet of Ministers of Ukraine to accompany investors in preparing and implementing investment projects with significant investments.

The law stipulates that state support may be provided to investors in the form of tax benefits (exemption from corporate income tax and duties upon import of new equipment into the customs territory of Ukraine), granting the right to use a land plot to implement an investment project with rent to be paid under special conditions, as well as providing adjacent infrastructure facilities (highways, communication lines, heat, gas, water and electricity supply facilities, utilities, etc.) through the construction/reconstruction of such infrastructure at the expense of the state.

It is stipulated that the total amount of state support should not exceed 30% of the amount of investment in a project.

The bill also defines the requirements for investment projects and investors who can receive state support.

It is estimated that the amount of investment in a project should exceed the amount equivalent to 20 million euros. The project is to be implemented on the territory of Ukraine in the spheres of processing industry (except for the production and circulation of tobacco products, ethyl alcohol, cognac and fruit, alcoholic beverages), including in the field of mineral processing (except for coal and lignite, crude oil and natural gas), waste management, transport, warehousing, postal and courier activities, logistics, education, health, arts, culture, sports, tourism, and recreation.

In the process of implementing the investment project, at least 80 jobs should be created with an average salary of employees at least 15% higher than the average salary for the relevant activity in the region where the project is implemented for the previous calendar year. The project implementation period should not exceed five years.

The bill introduces the institution of a special investment agreement, which will be concluded between the investor and the Government of Ukraine as part of an investment project with significant investments.

On July 21, the Verkhovna Rada supported at first reading the bill No. 3760 "On State Support for Investment Projects with Significant Investments."

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