Business news from Ukraine

Business news from Ukraine

Verkhovna Rada of Ukraine has approved bill to improve operation of industrial parks

The Verkhovna Rada of Ukraine has approved, in its entirety, a bill to improve the operation of industrial parks (IPs). According to a correspondent for the “Interfax-Ukraine” news agency, 270 deputies voted in favor of the bill, exceeding the required minimum of 226 votes.

“Based on the results of ongoing monitoring of the development of industrial parks, we identified issues, the solutions to which have now been approved by the Rada. Essentially, these are technical issues that arose during the practical implementation of the legislation adopted in 2022. But resolving each of them will contribute to the faster development of this sector and the emergence of new manufacturing facilities,” wrote the bill’s sponsor, Dmytro Kysilevskyi, deputy chairman of the parliamentary committee on economic development.

He noted that the bill, in particular, more clearly delineates the functions of all entities within an industrial park, and grants the initiator of a park’s creation the ability to also act as the managing company without establishing a separate legal entity.

In addition, the concept of an “eco-industrial park” has been introduced, the Cabinet of Ministers has been granted the authority to establish criteria for them, and a new category of land use designation has been introduced: land for industrial parks.

The procedure for increasing and decreasing the area of an industrial park has also been regulated, as have issues regarding the transfer of ownership rights to a land plot within an industrial park from the park’s initiator to another party; opportunities for establishing industrial parks have been expanded: land plots may now be considered adjacent if there are forest buffer strips between them.

Among the issues addressed are improvements to the competitive selection process for management companies and the introduction of the possibility for management companies whose primary activity is the leasing of real estate to obtain loans under the “5-7-9” program.

Temporary restrictions on the acquisition of power capacity for small electricity distribution systems in industrial parks have also been lifted, and provisions regarding state incentives for industrial parks have been improved, in particular through the transfer of international technical assistance from local government bodies to industrial parks.

As of the end of 2025, 37 factories had been built or were under construction in Ukraine’s industrial parks. Throughout 2026, manufacturing enterprises in the parks continued to open.

As previously reported, Bill No. 12117 was adopted in principle on February 11, 2025, with amendments to its provisions, by a vote of 244 members of parliament.

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Ukraine may transition to network of small warehouses instead of large logistics centers

According to Interfax-Ukraine, Valery Kirilko, CEO of the “Industrial Parks of Ukraine” group of companies, believes that one solution for changing Ukraine’s warehouse logistics model—given the enemy’s destruction of warehouse and logistics infrastructure—is to create a decentralized network of small warehouses, particularly within industrial parks.

“The war has shown just how vulnerable large distribution centers are. Therefore, we may need to partially move away from concentrating large volumes of goods in a single location and transition to a decentralized network of small warehouses,” –he wrote on Facebook.

According to his proposal, this could mean replacing a single large warehouse spanning tens of thousands of square meters with many smaller ones—ranging from 1,000 to 5,000 square meters—located in different regions and logistically convenient locations.

“That is precisely why we are currently developing the ‘HELP.Warehouse’ program. We are creating several standard designs for small warehouse complexes that can be quickly adapted to a specific plot of land and implemented simultaneously in different regions of Ukraine,” Kirilko noted.

He emphasized that the company is ready to take on the design of standard warehouse facilities, the search for and acquisition of land plots, matters related to utilities and infrastructure, the selection of construction contractors, the organization of construction, and the coordination of project implementation.

“With proper organization, such facilities can be built in approximately 3–5 months. And today, there is another important factor at play—the Ukrainian construction market is going through a challenging period. But that is precisely why many construction companies are willing to work with minimal profit margins, quickly assemble teams, and carry out projects at competitive costs,” he believes.

Kyrylko added that industrial park sites across Ukraine are being considered separately.

“Some of them are already prepared to provide land plots for such projects on preferential or even free terms during the initial period. We can begin restoring warehouse and logistics infrastructure right now,” he notes.

Kirilko invited those who are able to finance such projects—including those who own a land plot that can be leased free of charge for a year, industrial parks that can provide a small plot free of charge for a year, and construction companies acting as investors—to join the initiative.

The company “Industrial Parks of Ukraine” has been active in the development of industrial parks since 2019. According to its data, nearly one in three industrial parks established or registered in Ukraine is or has been supported by the company’s specialists.

According to information on its website, the company manages seven industrial parks, has developed 56 industrial park concepts, and has facilitated the registration of 37 industrial parks.

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Two industrial parks in Ukraine will receive 56 mln hryvnia in government support

The Ministry of Economy and Environment of Ukraine has decided to provide a total of 56 million hryvnias in state support to the “ART PACK INDUSTRIAL” industrial park in the Khmelnytskyi region and the “KRONOSPAN RIVNE” industrial park in the Rivne region, the ministry announced on August 21.

The “ART PACK INDUSTRIAL” industrial park will receive 9.699 million UAH to construct access roads to the park’s territory. An additional 46.305 million UAH will be allocated to “KRONOSPAN RIVNE” for the development of energy infrastructure.

“Government incentives are a practical tool that enables the creation of industrial infrastructure, attracts investment, and fosters the development of the manufacturing sector,” said Vitaliy Kindrativ, Deputy Minister of Economy and Environment of Ukraine. According to him, this support will allow the industrial parks in the Khmelnytskyi and Rivne regions to launch new production facilities more quickly.

Following the new decision, four industrial parks have already received state support since the beginning of 2026 to implement four projects totaling approximately 152 million hryvnias. In late May, “SMART TECH INDUSTRY” in the Poltava region and “Sparrow Park Lviv” became the first recipients this year, receiving over 96.5 million hryvnias. Of this amount, 5.5 million UAH was allocated for the construction of gas and water supply networks in the Poltava industrial park, and another 91 million UAH was allocated for the restoration of infrastructure in the Lviv industrial park that was damaged by a rocket strike.

Government funding for industrial parks is provided on a co-financing basis. Typically, the state covers up to 50% of the project cost, while for de-occupied and frontline territories, as well as for the restoration of infrastructure damaged by hostilities, the share of state support can reach 80%. The maximum amount of funding is up to 150 million hryvnias per industrial park.
Recipients of the funds are required to commission at least 5,000 square meters of industrial real estate within three years and attract at least two participants—industrial enterprises—to the park. The Ministry of Economy has extended the deadline for submitting applications for state incentives in 2026 until August 31.

The “ART PACK INDUSTRIAL” industrial park was included in the state register on December 17, 2025. It is located within the Khmelnytskyi city community, covers 10.22 hectares, and was established for a term of 50 years. The park’s primary focus is stated as the production of paper and paper products. In April 2026, “ART PAK SERVICE” LLC became the managing company.

“KRONOSPAN RIVNE” operates in the village of Horodok in the Rivne District and occupies approximately 85 hectares. The park was entered into the registry in July 2021. Its main areas of focus are the woodworking and furniture industries, as well as warehousing. The initial concept calls for the creation of approximately 1,100 jobs.

For “KRONOSPAN RIVNE,” the current funding is not the first instance of state support. In 2025, the park received an additional 55.3 million UAH for the construction of infrastructure for a cogeneration plant. According to the Rivne Regional State Administration, Kronospan has invested over 560 million euros in production in the region over the past few years, and the industrial park is viewed as a core platform for the development of a furniture cluster.

According to the Ministry of Economy, there are currently 123 registered industrial parks in Ukraine. As of the end of 2025, 37 industrial enterprises had been built or were under construction on their territories, and the total volume of attracted investments exceeded 45 billion UAH.
The 2026 state budget allocates 1 billion UAH for the development of industrial infrastructure in industrial parks as part of the “Made in Ukraine” policy to support Ukrainian manufacturers.

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€42 mln energy project, KovelEnergoPort, is underway in Volyn region

The Kovel Porto Industrial Park (Kovel, Volyn Oblast) has signed a cooperation agreement with the Polish company Hanplast Sp. z o.o., which will serve as the general contractor and investor for the KovelEnergoPort project, with a total value of 42 million euros, according to the Kovel Porto Industrial Park.

The agreement was signed by the parties during the Ukraine Recovery Conference (URC 2026) in Gdańsk.
“We have signed an agreement with the Polish company Hanplast, the general contractor (EPC), which is also participating in the project as an investor with a 20% stake in the energy SPV,” the IP’s Facebook page states.
The project involves the construction of a 5.99 MW solar power plant, a 40 MWh energy storage system, and the generation of approximately 5,800 MWh of electricity per year. Solar panels will be installed on the roofs of industrial buildings.

The total budget for the logistics and energy segment is approximately 2 million euros.
It is noted that bringing in a contractor as a co-owner of the project is “a clear signal of the project’s banking attractiveness to international financial institutions.”

IP “Kovel Porto” adds that a memorandum was also signed in Gdańsk with UkraineInvest, paving the way for state support for the project under the significant investment regime.
For its part, the Polish company Hanplast announced on LinkedIn that the project will be co-financed by the Polish bank BGK, and Hanplast, as an investor, will receive a 20% stake in the project.

“The ‘Kovel Porto’ investment project is being built on one of the key transport routes connecting Ukraine with the EU. The development of such infrastructure opens up new opportunities for industry, logistics, and the further recovery of the Ukrainian economy. It is not often that we have the opportunity to participate in projects that contribute to Ukraine’s future. This makes us even more grateful for the trust placed in us,” Hanplast notes.
The investor reports that, as part of the project, the infrastructure supplies energy to the dry port, warehouses, and industrial park, and feeds surplus power into the grid.

“Kovel Porto” is a multimodal logistics and energy platform on a 25-hectare brownfield site, located 56 km by rail and 62 km by road from the EU border (the Yagodin-Dorohusk crossing).
The project has been designated as being of national importance and is integrated into the TEN-T core network.

The platform combines six areas of operation: a dry port and container terminal, a customs hub (Smart Customs Hub), warehouses and 3PL logistics, an industrial park, energy (KovelEnergoPort), and a data center.
The project operator is Kompressorna Technika LLC (the initiator of the “Kovel Porto” private enterprise), whose ultimate beneficiaries, according to YouControl, are businessman Ilya Koshkin (66.28%) and Angela Krapivianska (22.72%).

The Polish company Hanplast specializes, among other things, in the design and manufacture of molds, injection molding of plastics, as well as the production of photovoltaic modules and solutions.
The “Kovel Porto” industrial park was registered in July 2024, and in October of that same year, the park received 69.8 million UAH in government funding for the construction and modernization of its infrastructure.

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New paint booth manufacturing plant has been launched in Vinnytsia at “VinIndustry” Industrial Park

The new Smart Line plant in the VinIndustri industrial park (IP) (Vinnytsia) has begun production of paint booths for the metalworking industry; initial investments in the plant totaled 46 million UAH, according to Dmytro Kysilevsky, deputy chairman of the Verkhovna Rada Committee on Economic Development.

“The plant’s design capacity is 20 paint booths per month. The first phase covers an area of 2,800 square meters. The industrial facility for the second phase, with an area of 5,000 square meters, is scheduled to be built by the end of 2026, with commissioning in 2027. The planned investment in the second phase is 60 million UAH,” he wrote on Facebook on Thursday.

Kysilevsky emphasized that with the second phase, Smart Line will become Ukraine’s largest manufacturer of paint booths.

In total, the company plans to employ 150 workers; currently, 32 specialists are working there, and the search for another 15 employees is ongoing.

“The first paint booths manufactured in the industrial park have been exported. Deliveries have already been made to Poland and Moldova. An order from Estonia is currently being fulfilled,” the MP said.

He added that to import equipment for the second phase of the Smart Line plant, the company plans to take advantage of the incentives provided for industrial park participants, specifically the zero VAT rate and zero import duties on equipment.

“The company can also take advantage of a zero corporate income tax rate for a period of 10 years, provided that the freed-up funds are reinvested. The Vinnytsia City Council has reduced the land tax for industrial parks from 3% to 1%. In addition, park residents are exempt from property tax,” Kysilevsky noted.

The VinIndustri industrial park, covering 26 hectares, was established in 2021. The initiative came from the Vinnytsia City Council.

According to information on its website, the Smart Line powder coating equipment plant was founded in 2014, and at the end of April of this year, the company began moving to its own production facility.

The company’s co-owners are two entrepreneurs from Khmelnytskyi—company director Oleksandr Bebekh (66.7%) and Serhiy Korbin (33.3%).

As previously reported, among the declared residents of the VinIndustri industrial park are Firewood (a manufacturer of equipment for producing fuel briquettes and pellets), Vizardy (metalworking for construction and agriculture), and the pharmaceutical distributor BaDM.

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Bila Tserkva Industrial Park to Launch Educational Hub

The Bila Tserkva Industrial Park (IP)—a project of entrepreneur Vasyl Khmelnytskyi’s holding company UFuture—is building an educational hub and plans to open it in 2026, Oleksiy Henzer, commercial director of the Bila Tserkva Industrial Park, told Interfax-Ukraine. According to him, the building, with a total area of 2,500 square meters, will house classrooms, training facilities with modern equipment, production laboratories, a conference hall, and office and social spaces.

“For us, the industrial park is a platform for shared infrastructure and collaborative solutions. Together, we create the engineering foundation, organize services, and must also jointly address systemic barriers that are difficult, expensive, and not always effective for an individual resident to overcome on their own. “One of the most pressing issues today is the availability of qualified specialists. For us, the training of specialists is part of the investment infrastructure,” he said.

Genzer emphasized the critical importance of supporting the community’s industrial development alongside the simultaneous development of education at all levels. “We are currently planning to involve a specialized educational institution to develop modern curricula. We also plan to involve residents in the program to give people the opportunity to train on modern equipment and obtain relevant qualifications directly within the park,” he said.

In addition, among the projects of the “Bila Tserkva” Industrial Park is support for secondary and vocational education. In particular, a memorandum has been signed with local authorities regarding the renovation of vocational training classrooms. Two classrooms have already been renovated, and by 2028, we plan to renovate classrooms in 13 more educational institutions.

“The community is handling the renovations, while we provide modern equipment. We hope that within the framework of this project, we will be able to cover almost all secondary schools in the city,” said Genzer.

UFuture, the investment holding company of Ukrainian entrepreneur Vasyl Khmelnytskyi, has a diversified portfolio of assets in real estate, infrastructure, industry, and pharmaceuticals. It is actively investing in the development of the UNIT.City innovation park and the Bila Tserkva Industrial Park.

The Bila Tserkva Industrial Park and Bila Tserkva 2 were included in the Register of Industrial Parks in 2018. There are over two dozen residents (including foreign companies) within the parks. Their total area is 70.3 hectares, of which 45 hectares have already been developed. Over 85,000 square meters of industrial and warehouse real estate have been commissioned.

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