Ukraine’s government gave the green light to set up an industrial park in Kyiv region and believes it will create 1,500 new jobs, attracting more than Hr.1 billion ($23.7 million) investments.
The new facility marks a hundredth industrial park in the country, Ukraine’s Prime Minister Denys Shmyhal said at the government meeting on Jan. 7.
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The industrial park “Myronivka” is located in Myronivka village in Kyiv region, in its Obukhiv district. It is the fourteenth industrial park in Kyiv region, Kyiv Regional Military Administration reported.
The area of the industrial park is 30.3667 hectares and it was initiated by Ukraine-based company LLC “ROBOТА: GRANOLA.” The facility is located 106 kilometers from Kyiv.
Out of Hr.1 billion ($23.7 million) investments planned, Hr. 95 million ($2.25 million) was allocated from the park’s founder company, Hr. 652 million ($15.54 million) from the future resident companies, Hr.180 million ($4.26 million) from external investors, and Hr. 173 million ($4.10 million) from “other funding sources”, Kyiv Regional Military Administration wrote.
The detailed list of companies that invested in the industrial park is not publicly available.
Key focuses of the park will include production of metal goods, electrical equipment and machinery.
Ukraine’s government encourages businesses to create industrial parks, areas zoned and planned for specific industrial development. The Ministry of Economy believes this is one of the instruments that will allow Ukraine’s economy to increase the share of value-added goods instead of raw goods.
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Participants in industrial parks receive a range of tax and customs benefits.
This includes exemption from import VAT and levy on imported equipment (provided there are no Ukrainian equivalents, and the equipment is used exclusively within the park).
Companies in the industrial park are also exempted from corporate income tax for 10 years, provided the funds are reinvested into the development of the enterprise.
The possibility of receiving local tax benefits is also available, based on decisions made by local authorities.
The Ministry even created a catalogue of industrial parks, saying it could help businesses to choose a location for their operations in Ukraine.
“This initiative is designed to play a key role in promoting Ukraine’s industrial parks, fostering economic growth and creating new opportunities for both local and international businesses,” the press release quoted Vitalii Kindrativ, Deputy Minister of Economy of Ukraine.
Ukraine’s Cabinet of Ministers wants to launch an “eco-industrial park,” the Prime Minister said, adding that the relevant bill is already submitted to Ukraine’s parliament.
Eco-industrial parks will focus on using alternative energy sources, efficient waste management and optimized water usage, according to Shmyhal.
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