To the Chairman of the Verkhovna Rada of Ukraine, Mr. Stefanchuk R.O.
To the Chairman of the Committee of the Verkhovna Rada of Ukraine on Economic Policy, Mr. Natalukha D.A.
Dear Mr. Chairman of the Verkhovna Rada of Ukraine,
Dear Mr. Chairman of the Committee!
Members of the Ukrainian Business Council Coalition, comprising 109 business associations from various economic sectors, extend their respect to you and address you as follows:
Investments are a key factor in economic development and growth, and their role is difficult to overestimate in times of war and during the post-conflict recovery period. A significant step towards creating a favorable investment climate was the adoption of the Law of Ukraine on State Support for Investment Projects with Significant Investments in Ukraine, passed in December 2020. This law established the principles of state support for investment projects to create favorable conditions for attracting significant investments (both domestic and foreign) to Ukraine, generating new jobs, stimulating economic development in regions, and enhancing the competitiveness of the Ukrainian economy.
However, in practice, this law has revealed a need for substantial improvement, primarily by the absence of any concluded investment agreements to date. To address these shortcomings and to refine and harmonize the legislation, the Cabinet of Ministers Draft Law No. 8138 was developed.
Experts from the Ukrainian Business Council have thoroughly analyzed Draft Law No. 8138 and note that it regulates and clarifies the concepts defined in the main Law, lowers the threshold indicators for an investor to be eligible for state support, broadens the scope in which projects can be realized, and introduces new forms of state support. This would significantly expand the pool of potential investors for investment projects and, consequently, contribute to the revival of investment activity in Ukraine.
The adoption of Draft Law No. 8138 will ensure the full functioning of the Law of Ukraine on State Support for Investment Projects with Significant Investments in Ukraine, providing investors with clear guarantees and incentives. This will create all the necessary conditions to enhance the investment attractiveness of Ukraine, promote economic development through private capital attraction, bolster Ukraine’s competitiveness in global markets, generate new job opportunities, and lay the groundwork for new and qualitative upgrades to existing infrastructure.
As of today, several applications from major investors awaiting the signing of investment agreements with the Cabinet of Ministers. At the same time, certain important provisions, specifically regarding the state compensation for costs related to insuring against war risks, are not included in the draft for the second reading. In our opinion, this is an essential component for increasing Ukraine’s attractiveness to investors. We propose supporting Amendment No. 30 (D. Natalukha) in the final version of the draft.
Ukrainian businesses call upon you to support Draft Law No. 8138 in the version for the second reading of the Committee on Economic Development, with the addition of Amendment No. 30. By doing so, we can eliminate existing barriers and facilitate the strengthening of investment activity in Ukraine—a matter of utmost importance for Ukraine’s economy today.
With respect,
Business Associations
Members of the Ukrainian Business Council