On March 15, 2024, the Cabinet of Ministers of Ukraine adopted Resolution No. 292 “On Approval of Procedures for Compensating the Cost of Constructed by Applicants or Investors with Significant Investments in Engineering and Transport Infrastructure Objects and Compensation for Connection and Accession Expenses to Engineering and Transport Networks Necessary for Implementing Investment Projects with Significant Investments” which gives a roadmap for compensation to Investors.
According to this resolution, investors can now receive compensation for the mentioned expenses. An important condition for obtaining the right to such compensation is the presence of the status of a project with significant investments. To obtain such status, an investment project must meet established criteria, including a minimum investment amount of 12 million euros, the project must envisage the creation of no less than 10 jobs, etc. More details about projects with significant investments can be found in our article here.
Compensation to investors will be paid subject to the following conditions
- The investment project must have the status of an investment project with significant investments.
- Submission of an application within the implementation period of an investment project with significant investments (such projects may have an implementation period of no more than 5 years).
- Providing supporting documents (approved project documentation, a copy of the report on the results of expertise of project documentation, estimate, copies of documents confirming the commissioning of the completed construction of an engineering and transport infrastructure object, copies of documents confirming the completion of works and/or provision of services, as well as the fact of payment for performed works and provided services).
An application for compensation to investors must be submitted no later than November 1 of the current year if the investor expects to receive compensation in that year. Within ten working days from the date of receiving the application, the Ministry of Economy verifies the package of documents. If deficiencies are found in the document package, in order to receive compensation, investors must correct the deficiencies no later than November 20 of the year in which they expect to receive compensation.
Based on the results of reviewing the application, the Ministry of Economy decides on compensation, partial compensation to investors in cases provided for by the procedure, or refusal to provide compensation if during the review of the application it was found that state support was provided in any other form of state support, which led to reaching the total amount of state support.
The decision is approved by the order of the Ministry of Economy and within five working days from the date of adoption of the decision, informs the investor with significant investments about the decision by sending him a copy of the order.
Conclusions
With the adoption of Resolution No. 292, a clear and understandable procedure for compensating investors who implement projects with significant investments in Ukraine has been established. This allows investors to effectively use state support and serves as an additional attractive factor for investing in the economy of Ukraine.
More information about investments, state support, and legal services that may be useful to you can be found here.
If you are interested in investing in Ukraine and wish to receive legal and state support in implementing your investment project, please contact us. We will provide reliable support at all stages of your investment project.
