Q/A Session about Investment Potential of Ukraine

Q/A Session about Investment Potential of Ukraine.
The following Q&A provides information about industrial parks, opportunities in Investments, state aid, and many more.
Published on 30th of July 2019

Sergej Strajnak:
Would you be so kind to describe, in more detail, what kind of support services are you offering for the potential foreign investors, which are interested in the investment in the Ukraine, on the “greenfields” or “brownfields”?

UkraineInvest & Ministry of Economic Development of Ukraine:
UkraineInvest is the Ukrainian government's investment promotion agency created in 2016 to attract and support foreign direct investment in Ukraine. UkraineInvest works directly with investors and the Government on continuous improvement of the investment environment by providing investors with objective, practical advice on doing business in Ukraine and facilitating systemic changes to legislation on improving the ease of doing business in Ukraine. We provide turnkey services (one-stop services free of charge), including:
Navigation and guidance, Assistance in identifying opportunities
Problem solving, Personal approach
Information and insight, Local expertise
Support informed decision making, Introductions
Connection to all levels of government, business associations and investors, Key sector expertise
Professional consultancy of high growth sectors and niche markets, Regional support
Headquartered in Kyiv with support in regions, Close cooperation with regional partners, Advocacy
Important voice for business, Direct access to government
Investors can reach directly managing companies of industrial parks or regional and local authorities also via following sources:
Industrial Parks in Ukraine
Investment Contact Points
It is possible to use all mentioned kinds of communication on investors choice.

Sergej Strajnak:
How many industrial parks are available, right now for the foreign investors in the Ukraine (greenfields and brownfields)? Where can the foreign investor find information about industrial parks?

UkraineInvest & Ministry of Economic Development of Ukraine:
As of July 2019, there are 39 industrial parks registered at Ministry of Economic Development and Trade of Ukrainе (MEDT) and available for foreign investors in Ukraine. 16 industrial parks have a managing companies and 5 parks host 10 participants. The foreign investors can find information about industrial parks in Ukraine on the official website of MEDT. Direct link
Industrial Parks in Ukraine

Sergej Strajnak:
What are the major institutions in Ukraine, on which can a foreign investor rely, or can contact, if he/she need an information regarding the investment in the Ukraine?

UkraineInvest & Ministry of Economic Development of Ukraine:
UkraineInvest is the Ukrainian government's investment promotion agency created in 2016 to attract and support foreign direct investment in Ukraine.
Direct contacts of UkraineInvest:
Phone: +38 044 256 7832
For General Information or Contacts, please email us at:
info@ukraineinvest.com

Sergej Strajnak:
Does Ukraine offer a help from the state itself or government to the foreign investors? If yes, can you please describe it more detail?

UkraineInvest & Ministry of Economic Development of Ukraine:
Although Ukraine’s program with the IMF provides a limited scope for targeted tax incentives or direct financial incentives, the Government developed a sufficient package of investment incentives at the level of local authorities, as a part of decentralization reform and implementation of industrial park model. The local authorities are eligible to provide land tax preferences, real-estate tax preferences, exemption from equity participation fee, exemption from customs duties for plant property and equipment and its components, VAT payments on imported equipment by installments up to 24 months. Industrial park became also an effective support instrument to provide foreign investors with administrative services of the assistance to set up efficient customs clearance system, assistance in obtaining permits, assistance in recruiting, training employees and set up educational programs, etc.
The labor and economic drivers of investment with a proposed incentives package are compelling based on Ukraine’s competitive advantage over other countries in the region.

Sergej Strajnak:
Which regions of the Ukraine offers the best opportunities for the investment in the IT, automotive, light and heavy industry?

UkraineInvest & Ministry of Economic Development of Ukraine:
In Ukraine, different regions have different specialization. For example:
· Western regions are mostly specialized in export-oriented manufacturing. There is already an established automotive cluster in this part of Ukraine.
· Central region is in light industry and agri-processing.
· Southern region is specialized in agri-business and renewables.
· Eastern region is specialized on heavy industry, renewables and aerospace.
· IT industry is well developed in all regions of Ukraine, however many companies tend to locate their offices in cities with strong technical education institutes, such as Kyiv, Kharkiv, Lviv, Dnipro, Odesa, etc.

Sergej Strajnak:
Why should an investor invest in the Ukraine? What are the main reasons?

UkraineInvest & Ministry of Economic Development of Ukraine:
Ukraine is a ground floor investment opportunity located in Europe, offering a highly skilled and productive workforce, low-cost manufacturing platforms and attractive entry valuations.
For the past years Ukraine has become a stable and predictable emerging market with a high margin returns and numerous opportunities to invest.
These are well established industries with attractive investment opportunities, such as IT, manufacturing, oil&gas, agri-business, especially agri-processing and logistics.
Ukraine’s IT industry is among the country’s fastest growing industries with an impressive annual average growth rate of 25% over the past 15 years. It is also diverse from cutting
edge work in AI, cyber security, natural language processing and nanotechnologies to highly commercial ventures in blockchain, FinTech, big data management, gaming, agribusiness and e-commerce.

Sergej Strajnak:
How do you see the future perspective and utilization in percentage of industrial parks in next 15 years?

UkraineInvest & Ministry of Economic Development of Ukraine:
Since November 2015 when industrial park model was implemented in legislation, Ukraine has 39 industrial parks registered at Ministry of Economic Development and Trade of Ukrainе (MEDT). As of July 2019, six industrial parks already managed to attract companies to establish their business there. 16 industrial parks have a managing company which is responsible for providing infrastructure necessary for the business to start their operations. When other parks choose managing companies, their utilization shall improve. Three of industrial parks are no longer actual for developing (their landplots were used for other goals).

Sergej Strajnak:
Actually from which countries come most investors to Ukraine from?

UkraineInvest & Ministry of Economic Development of Ukraine:
Investors put their money in Ukraine from all around the world. According to the State Statistics Service of Ukraine, the largest investing countries in Ukraine are Cyprus, the Netherlands, Russian Federation, the United Kingdom, Germany, and Switzerland. However, many companies (domestic and foreign) use attractive fiscal jurisdictions, such as Cyprus, the Netherlands and others, which distorts official statistics.
UkraineInvest, the government’s investment promotion office, made alternative calculation of investment made by foreign companies in real economy sectors of Ukraine (excluding finance, real estate sectors). According to UkraineInvest, in 2015-2018 Ukraine attracted over $5 billion of foreign direct investment (FDI). The top investing countries are Germany, France, United States, Norway, the Netherlands, Switzerland, and China.

Sergej Strajnak:
Which are your goal countries (geographical location) according to foreign direct investments?

UkraineInvest & Ministry of Economic Development of Ukraine:
Ukraine is truly opened for international business which creates well-paid high-value-added jobs, brings new technologies and high business ethics standards despite the origination country.
For the purposes of efficiency and effectiveness of attracting FDI, UkraineInvest focuses our efforts on key global markets, which are: France, Germany, United States, Scandinavian countries, Gulf countries.

InvestUkraine iOS

iOS version of Industrial Parks in Ukraine