The Cabinet of Ministers of Ukraine has updated the mechanisms for state support for industrial parks that have suffered damage or destruction due to military aggression by Russia. Relevant changes have been made to the regulations governing state incentives for industrial parks, specifically to resolutions No. 341 and No. 644.
This is reported by Finway
New Financing Order for Affected Parks
According to the updated rules, a separate financing mechanism has been introduced for industrial parks whose engineering and transport infrastructure has been damaged due to hostilities. The state will compensate up to 80% of the estimated cost of the recovery project, but the amount cannot exceed 200 million UAH per park. To receive funding, the applicant is required to implement at least 5,000 square meters of industrial space and attract at least two processing enterprises to the area.
An application for such assistance must be submitted within six months from the moment the facility was damaged. All such applications will be considered as a priority.
“If the applicant has already received state incentives before the infrastructure was damaged, the maximum amount of assistance is determined as the difference between 200 million UAH and the amount of funds actually received, with no additional obligations imposed on the applicant.”
Expansion of Geography and New Co-Financing Conditions
The updated rules also expand the range of territories eligible for preferential co-financing under the 80/20 scheme. Previously, it applied only to de-occupied communities, but now the mechanism extends to frontline areas as well. This allows communities in close proximity to active or potential combat zones to apply for state funding of 80% of the estimated cost of the project or expenses for connection to the power grid.
In addition to expanding the geography of support, the government has introduced additional financial instruments and strengthened control over the use of budget funds. With the agreement of the Ministry of Economy, applicants can redistribute received state funds among different projects or direct them to new initiatives within a single industrial park.
In the event of the applicant failing to fulfill their obligations or returning funds, compensatory interest payments are required. The amount is calculated based on the discount rate of the National Bank of Ukraine for the entire period of using budget resources.