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Industrial Parks of Ukraine
      National Project
The new opportunities 2012

• Legislation
   – New laws were passed creating favorable
     legal framework for industrial property
     development

• Incentives
   – Fiscal, access to land, and customs incentives
     for strategic investors were introduced

• Infrastructure
   – IPU National Project to develop ready to use
     land plots, infrastructure, and public services
     altogether      shortening     time-to-market
     launched
New Legal Framework



• State law "On industrial parks“
   – Creates legal foundation for industrial park
     operations and provides customs and land
     incentives


• State law "On stimulation of investment
  activities in priority sectors of the
  economy with intention to create new
  jobs“
   – Creates legal foundation for introduction of
     tax and customs incentives
New Incentives
   Under the State law “On industrial parks”

• No duties for equipment that is not
  produced in Ukraine used for park
  operations or operations of the resident
  company

• Relief from municipal infrastructure
  development levy

• Simplified procedure of access to industrial
  land

• State grants and financing on favorable
  terms
New Incentives
    Under the State law “On stimulation of investment activities in
priority sectors of the economy with intention to create new jobs”


                        • Corporate income tax relief till 2017
                          and reduced to 8% till 2022

                        • accelerated capital allowance on
                          operating equipment

                        • Relief from duties for purchase of
                          equipment and/ or its components
                          used in technological process till 2018
New Infrastructure
Industrial parks of Ukraine National Project




 • Public    intervention    targeted     at
   satisfying existing and prospective
   demand of strategic investors for
   market ready industrial property and at
   stimulation of the industrial real estate
   development       and      management
   industry in Ukraine.
New Infrastructure
Industrial parks of Ukraine National Project

 • Boosting the industrial property and
   modern infrastructure market with 10 new
   industrial parks

 • Introducing new technologies to Ukraine
   that come along with new park residents

 • Prime efficient logistics between parks and
   markets

 • Unique approach to each park based on
   individual clustering, market specialization
   and other key indicators
New Infrastructure
              Industrial parks of Ukraine National Project Targets

Spring 2013        Due-diligence of available Ukrainian greenfield
                                   industrial property conducted


Mid-2013                      10 best locations for industrial parks
                                             development selected
Mid-2014                 Pilot industrial park built and operational

2015                       10 industrial parks/ approx. 1 500 ha of
                               industrial land built and operational


2017                                             40.000 new jobs
                                120 new multinational companies
                                  1 000 local companies-suppliers
                                                   €2.5 bl. of FDI
New Benefits for Industrial Parks Residents
                    Unique selling points of parks
       • Complete package of engineering and
         transport infrastructure and services for
         each park

       • Flexible industrial specialization that
         bridges needs of prospective companies
         and communities

       • Filling gaps in supply chains for local
         and global industries

       • Location benefits combining robust
         infrastructure and smart logistics
The State Agency ’s Assistance
                                                                            Summary

             investments                              promotion        investments



  One Stop Shop for Investors                            Project Marketplace
 Service for strategic investors (FDI)                 Startup assistance for SMEs


                 “Industrial Parks of Ukraine” National Project
                         New FDI infrastructure development

State law “On stimulation of investment activities in priority sectors of the
               economy with intention to create new jobs”
                            Incentives for strategic investors

                           State law “On Industrial Parks”
                 Foundation that shortens investor’s time-to-market
THANK YOU!
        Petro Koshukov
       IPU-NP Manager
p.koshukov@ukrproject.gov.ua
      +380 50 357 1411

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2012 11-20 industrial parks of ukraine brief

  • 1. Industrial Parks of Ukraine National Project
  • 2. The new opportunities 2012 • Legislation – New laws were passed creating favorable legal framework for industrial property development • Incentives – Fiscal, access to land, and customs incentives for strategic investors were introduced • Infrastructure – IPU National Project to develop ready to use land plots, infrastructure, and public services altogether shortening time-to-market launched
  • 3. New Legal Framework • State law "On industrial parks“ – Creates legal foundation for industrial park operations and provides customs and land incentives • State law "On stimulation of investment activities in priority sectors of the economy with intention to create new jobs“ – Creates legal foundation for introduction of tax and customs incentives
  • 4. New Incentives Under the State law “On industrial parks” • No duties for equipment that is not produced in Ukraine used for park operations or operations of the resident company • Relief from municipal infrastructure development levy • Simplified procedure of access to industrial land • State grants and financing on favorable terms
  • 5. New Incentives Under the State law “On stimulation of investment activities in priority sectors of the economy with intention to create new jobs” • Corporate income tax relief till 2017 and reduced to 8% till 2022 • accelerated capital allowance on operating equipment • Relief from duties for purchase of equipment and/ or its components used in technological process till 2018
  • 6. New Infrastructure Industrial parks of Ukraine National Project • Public intervention targeted at satisfying existing and prospective demand of strategic investors for market ready industrial property and at stimulation of the industrial real estate development and management industry in Ukraine.
  • 7. New Infrastructure Industrial parks of Ukraine National Project • Boosting the industrial property and modern infrastructure market with 10 new industrial parks • Introducing new technologies to Ukraine that come along with new park residents • Prime efficient logistics between parks and markets • Unique approach to each park based on individual clustering, market specialization and other key indicators
  • 8. New Infrastructure Industrial parks of Ukraine National Project Targets Spring 2013 Due-diligence of available Ukrainian greenfield industrial property conducted Mid-2013 10 best locations for industrial parks development selected Mid-2014 Pilot industrial park built and operational 2015 10 industrial parks/ approx. 1 500 ha of industrial land built and operational 2017 40.000 new jobs 120 new multinational companies 1 000 local companies-suppliers €2.5 bl. of FDI
  • 9. New Benefits for Industrial Parks Residents Unique selling points of parks • Complete package of engineering and transport infrastructure and services for each park • Flexible industrial specialization that bridges needs of prospective companies and communities • Filling gaps in supply chains for local and global industries • Location benefits combining robust infrastructure and smart logistics
  • 10. The State Agency ’s Assistance Summary investments promotion investments One Stop Shop for Investors Project Marketplace Service for strategic investors (FDI) Startup assistance for SMEs “Industrial Parks of Ukraine” National Project New FDI infrastructure development State law “On stimulation of investment activities in priority sectors of the economy with intention to create new jobs” Incentives for strategic investors State law “On Industrial Parks” Foundation that shortens investor’s time-to-market
  • 11. THANK YOU! Petro Koshukov IPU-NP Manager p.koshukov@ukrproject.gov.ua +380 50 357 1411