Business news from Ukraine

Two new industrial parks should attract UAH 1.5 bln of investments – ministry

The Cabinet of Ministers of Ukraine has approved the creation of two new industrial parks (IP) – “Dnister” on the territory of Yampol city territorial community of Mogilev-Podolsky district of Vinnytsia region and “Galicia” on the territory of Kalush in Ivano-Frankivsk region.

According to the Ministry of Economy, total investments in the two industrial parks for the next three years should amount to more than UAH 1.5 billion.

Prime Minister of Ukraine Denis Shmygal at a government meeting on March 29 announced the inclusion of the two new parks in the Register of industrial (industrial) parks, and the creation of the State Office for the development of industrial parks.

According to the Ministry of Economy, the concept of IP “Dnister” assumes the creation of 265 jobs in the processing industry on an area of 17.2 hectares.

“It is assumed that the park will specialize in the production of paper and paper products, processing of plant products and other activities compatible with those listed,” the report explains.

In turn, IP “Galicia” will be located on an area of 19.8 hectares and will provide the creation of up to 1000 jobs.

The main directions of activity are determined by the manufacture of construction materials.

On the territory of the park will be created production of building materials from clay, production of cement, lime and gypsum mixtures, as well as manufacturing of products from concrete, gypsum and cement.

According to the Ministry of Economy, the investors plan to start production of machinery and equipment, introduce processing of industrial and household waste, engage in scientific and technical activities, as well as create enterprises that will work with alternative energy and energy conservation.

As reported, the state budget-2024 for the first time provided for the allocation of 1 billion UAH for the development of infrastructure of industrial parks.

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Cabinet of Ministers plans to significantly increase excise taxes on vermouth and cider

The government of Ukraine proposes to increase the excise tax rate for alcoholic beverages classified as “intermediate products” from 8.42 to 12.23 UAH per 1 liter, i.e. to the level of the rate for sparkling and carbonated wines.

As reported by the Ministry of Finance, the corresponding bill with amendments to the Tax Code, the Cabinet of Ministers approved at a meeting on Friday.

“Revision of excise duties is due to the need to bring national legislation closer to the legislation of the European Union, which is relevant in view of Ukraine’s status as a candidate country for EU membership,” the Finance Ministry said.

The document provides for bringing in compliance with the norms of the EU Council Directive No. 92/83/EEC classification of alcoholic beverages in the part concerning the definition of the term “intermediate products” – wines and other fermented beverages referred to codes 2204, 2205, 2206 according to the Ukrainian classification of goods for foreign economic activity. In particular, we are talking about vermouth, cider and perry.

The Ministry of Finance predicts an increase in revenues from such an increase at the level of 4.5 million UAH per month.

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The Cabinet of Ministers has approved program for partial compensation of farmers for purchase of Ukrainian-made agricultural machinery.

The Cabinet of Ministers of Ukraine has approved the procedure for the use of funds for partial compensation to agrarians for the purchase of agricultural machinery of domestic production, Prime Minister Denis Shmygal said.

“This year we allocate UAH 1 billion for the program of partial compensation to agrarians who buy agricultural machinery of our Ukrainian production. We will compensate 25% of the cost. We approve today the appropriate procedure for the use of funds and improve some elements of this program,” Shmygal said at a government meeting on Friday.

Ot noted that according to the estimates of the Ministry of Economy, the program will allow to double the share of domestic agricultural machinery in the domestic market.

“Imports will decrease by about 10%. Re-equipment of 4.5 thousand producers will take place. About 1 thousand additional jobs will be created, which in turn will give more taxes to the budget,” – said Prime Minister.

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Cabinet of Ministers has expanded list of medical products that are mandatory for purchase through Prozorro Market

The Cabinet of Ministers has expanded the list of medical products that are mandatory for purchase through the electronic catalog Prozorro Market.

According to the state enterprise “Medical Procurement of Ukraine” (MPU), thus, more than 400 categories of medicines and 92 categories of medical devices will be mandatory for purchase through the electronic catalog.

The relevant changes, enshrined in the government resolution No. 34 regarding medical devices, have already entered into force, while regarding medicines the innovations will be applied from March 1, 2024.

In 2023, more than 1600 customers conducted 13 thousand transactions using Prozorro Market to purchase medicines and medical devices.

The total value of medical goods purchased through electronic catalogs in 2022 amounted to $28 million, in 2023 – $ 2.5 billion.

Prozorro Market electronic catalog works on the principle of the market and is free for customers. With its help, customers can quickly, conveniently and favorably buy products. The medical part of the catalog is administered by specialists from the Ministry of Health.

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Three more industrial parks to be created in Ukraine

The Cabinet of Ministers at a meeting on Friday included in the Register of industrial parks three parks at once: two in Khmelnytskyi region and one in Lviv region, the Ministry of Economy reported.
In particular, the register includes FE Krasyliv Technoport with the area of 10.146 hectares, the creation of which was initiated by JSC Krasyliv Machine-Building Plant. The park plans to create about 500 jobs in the industrial cluster for metalworking and metal products manufacturing.
“The initiator plans to invest in the park 87 million UAH, it is also expected to attract investments of the management company, residents of the park (in its own production), private financing of the project,” – indicated the Ministry of Economy.
It is noted that investors from Poland, Germany and Turkey have confirmed their readiness to invest in the park’s enterprises following the results of negotiations.
The total amount of preliminary confirmed investments is 555 million UAH, another 70 million UAH is expected from small and medium-sized businesses, which will help with the manufacture of parts for the production of large investors.
The second park in Khmelnytsky region, included in the register, was the FE “Carbon Neutral ECO AGRO HAB Podillya “Gorodok”, on the territory of Gorodok city territorial community. 50.1856 hectares of land were allocated for the arrangement of the park, and the initiator of the IP was Epicenter K LLC.
“The park will specialize in agro-processing – production of oil and fats, products of the flour and poultry industry, other food products and ready-made animal feed. In addition, it is planned to produce most of the electricity for the work of the enterprises located there,” the report says.
It is assumed that the creation of the park will provide work for about 480 residents of the community. As noted in the concept of the park, during 2026-2032 the enterprises participating in the park will pay to the budgets more than 525 million UAH of taxes and fees.
In addition, the register of FE includes “YADRO Industri” in Drohobych, Lviv region, with an area of 10.0036 hectares, initiated by LLC “Facade-West”, which plans to invest in the development of more than 561 million UAH.
It is planned to create about 500 jobs in the industrial cluster, one of the key types of production of which is planned to be window production.
Priority for placement in the park will also be enterprises for production of building materials from clay, porcelain and ceramics products; production of cement, lime and gypsum mixture and products from these materials, processing and finishing of stone, etc.
It is stated that among the investors ready to invest in production are companies from the USA and Spain, Ukrainian small and medium-sized enterprises. The total amount of their investments is planned at the level of 270 million UAH.
“The development of industrial parks is very important in the context of recovery and further growth of the Ukrainian economy…The government is purposefully working on the development of processing with high added value. And the work of processing enterprises within the parks gives businesses significant additional opportunities for growth,” the press service quoted Deputy Economy Minister Volodymyr Kuzo as saying.
Given the decisions taken by the government on Friday, 73 parks are included in the Register of industrial parks.
As reported, the draft state budget for 2024 for the first time provided for the allocation of UAH 1 billion for the development of infrastructure of industrial parks.

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Ukraine extends embargo on Russian goods until December 31, 2024

The Cabinet of Ministers has extended restrictions on trade with Russia until December 31, 2024.
According to the Cabinet’s representative in the Verkhovna Rada Taras Melnychuk in Telegram, the relevant decisions were taken at a government meeting on Friday.
In particular, the government decree of December 30, 2015 № 1147 “On the ban on the importation of goods originating from the Russian Federation into the customs territory of Ukraine” until December 31, 2024 (inclusive) was extended.
In addition, the decree of December 30, 2015 No. 1146 “On the rates of import duty in respect of goods that originate from the Russian Federation” was extended until December 31, 2024.

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