“Ukraine is trying to restore industrial potential, partially lost during the Russian invasion. In relatively safe regions, the industrial infrastructure of industrial parks began to be massively built and modernized. Currently, such parks are most in Lviv, Transcarpathian, Ivano-Frankivsk, Kyiv regions and Kyiv. The Cabinet of Ministers plans to allocate UAH 1 billion this year. It is assumed that such projects will help to create”, – WRITE ON: ua.news
Ukraine is trying to restore industrial potential, partially lost during the Russian invasion. In relatively safe regions, the industrial infrastructure of industrial parks began to be massively built and modernized. Now such parks are most in Lviv, Transcarpathian, Ivano-Frankivsk, Kyiv regions and Kiev.
In support of such industrial sites, the Cabinet of Ministers plans this year to allocate UAH 1 billion. Such projects are expected to help create new jobs, fill local budgets and produce more products with higher export costs. Which, accordingly, should increase the currency revenue.
About economic recovery, export prospects and role in these processes of industrial parks within Export Credit Forum for ua.news told Andriy Telupa, Deputy Minister of Economy of Ukraine.
According to the Ministry of Economy, despite the war of the GDP, the country continues renewable growth after falling in 2022. What industries occur?
Andriy Telupa: We see production growth in all major industries. If you look at the total indicator – last year of Ukraine’s GDP increased by 3.6%, one of the drivers of this increase was an increase in exports. In particular, there was an increase in commodity exports by 29%.
What did Ukraine export most? Are there any changes in heading?
Andriy Telupa: The largest heading that took first place was the export of oil. This is a significant indicator. It is a product that has a certain depth of processing. This is a very positive dynamics: we not just export raw materials, but increase the proportion of processing products.
In general, our goal, as the Ministry of Economy, to create the most convenient conditions for production in Ukraine and allow the export of manufactured products – in terms of financing and opening markets. This is our work, and we do it.
What exactly does the state plan to support exporters in 2025?
Andriy Telupa: We see several priorities. The first is just an increase in the amount of activities of the export -credit agency, which should insure and help exporters minimize the risks of their work.
The development of military risk insurance is also among priorities. To do this, we interact with our international partners such as DFC (Development Finance Corporation) and MIGA (World Bank Group). In addition, a new law “On Military Risk Insurance Insurance” should work in Ukraine. This will allow exporters and Ukrainian manufacturers to protect their interests and minimize current risks.
And what are the prospects for expanding Ukrainian products in the coming year?
Andriy Telupa: We work to support open markets with our major partners such as the United States, the United Kingdom and the EU countries. The discovery of new markets of Africa and Asia is also a priority. Our agricultural products are traditionally interesting for these markets. But Ukraine has considerable potential for export, for example, in agricultural engineering. We will also offer these products to be supplied to new markets. We are convinced that we can export not only raw materials or processing foods, but also start export of equipment.
Last year, Ukrainian exports to the European Union were relatively growing. In your opinion, will this increase in 2025 can continue?
Andriy Telupa: Yes, the EU market is our main partner for export. Over the past year, more than $ 1 billion has increased, respectively, as part of our harmonization of legislation and work to expand access to the market, we expect a gradual increase in exports to the EU.
Let me remind you that Ukraine is now in the process of joining the European Union and gradually harmonizes its standards with European ones. Our goal is to ensure the full compliance of export products with EU countries. A separate direction is to work with national governments in order to open the markets of individual countries. It is conditional that there are no obstacles on the borders for our export.
Will Ukrainian exporters global trade changes implemented by the United States for individual countries?
Andriy Telupa: If you look at the structure of our exports, no. We are currently working with the United States to maintain access conditions for Ukrainian manufacturers to the US market. Therefore, we do not expect a significant impact on exports from Ukraine.
Returning to the topic of increasing industrial production in Ukraine and exports of goods added, what is the role in this industrial parks? Why does the state support their construction?
Andriy Telupa: Industrial parks are finally a tool that actually works and helps new industries. Indeed, now the boom of industrial parks in the west and in the center of the country. In total, 100 industrial parks have already been registered in Ukraine. Last year, they began to be actively built.
More than 15 parks have been funded by the state, in terms of compensation for the costs of infrastructure. If you go to Lviv or Kalush, you will see industrial parks at different stages of arrangement: some already launched and have working production, and some – only develop.
We predict that this tool will be active in demand from Ukrainian manufacturers and foreign investors at least in the next few years.
Much of the industrial parks are just focused on export. They are logistically located near the western border of Ukraine, have convenient access to the EU market. I note that the main priority of industrial park development is the processing industry. Therefore, we expect both the growth of industrial production in Ukraine and the corresponding exports to the EU.
Reference. For participants of industrial parks there is a number of tax and customs privileges: exemption from import VAT and duties on equipment (in the absence of Ukrainian analogues and use exclusively in the territory of the park); Exemption for 10 years from income tax subject to reinvestment of funds in the development of the enterprise; Possibility of receiving local tax benefits by decision of local self -government bodies.
Read also:
Trump’s policy can change world trade: how to use Ukraine told Dmitry Natalukha, Chairman of the Verkhovna Rada Committee on Economic Development
The markets of Africa, Latin America, Indonesia and Vietnam: Dmitry Natalukha, Chairman of the Verkhovna Rada Committee on Economic Development About where Move to Ukrainian exports
All insidious and up-to-date information on our telegram channelas well as bonuses and fast news.