Ukraine SEZS Offer Investment
Advantages
by Yuriy Prykhodko
(Yuriy Prykhodko is a commercial specialist with the US.
Commercial Service of the American Embassy in Kyiv)
In the last year, Ukraine has been actively setting up special (free)
economic zones (SEZS) in areas of the country with the greatest industrial or other
potential, as well as the greatest economic need. The zones provide investors with
favorable tax, customs, and economic treatment and each has its own set of specific
privileges and conditions for investors, depending on the features of the region.
Currently, eight zones have been created: Syvash in northern Crimea, Azov in Donetsk
Oblast, Donetsk in eastern Ukraine, Zakarpattya in western Ukraine, Slavutych in Cheenihiv
Oblast, Truskavets in Lviv Oblast, and Yavoriv rayon in Lviv Oblast. The decree for the
latest zone, the Interport Kovel Free Economic Zone, to start operation on January 1,
2000, was signed on June 23, 1999.
The law on the Yavoriv special economic area (YSEA) was signed in mid-January 1999 and
established the zone for 20 years. The rayon (district) administration acts as the
managing and regulatory authority for the YSEA, approving and registering all investment
projects worth at least $500,000.
The YSEA legislation stipulates the following privileges for investors and project
implementers:
- A 5-year corporate profit tax exemption for investment projects.
- Imported equipment, spare parts, and other non-excise items required for implementation
of investment projects are exempt from import duties for up to 5 years and from
value-added tax (VAT);
- The import of goods for use within the territory of the YSEA, as well as the export of
goods completely or partially manufactured/processed within the territory of the YSEA, are
not subject to licensing and quotas;
- Owners and users of land within the territory of the YSEA are exempt from land tax
during the first 3 years of implementation of a project.
In addition, the government of Ukraine guarantees full compensation of losses in case
of the liquidation of the YSEA. These stipulations and privileges are similar to those for
the other zones.
A concise description of 14 priority investment projects for the area as determined by the
Yavoriv district administration can be found on BISNIS Online at www.bisnis.doc.gov/bisnis/country/9906yav.htm.
The listed projects offer opportunities in the areas of electric power generation,
production of agricultural chemicals, construction and operation of an oil enterprise,
construction of a petroleum extraction and processing enterprise, production of concrete
and building lime, poultry processing, construction and operation of a milk processing
plant, construction and operation of a donor plasma processing plant, reconstruction and
operation of a textile factory, production of PET plastic bottles at an existing plastics
factory, construction and operation of a customs post and service plaza, and the
construction of a toll road.
Locations of free economic zones in Ukraine.
For more detailed information on the YSEA, interested parties are encouraged to
contact:
Mr. Stepan Lukashyk
Head, Yavoria Regional Administration
8 Ivana Franko St. Yavoria
Lvivska Oblast, Ukraine 292160
Tel: +380 (322) 798-246
Tel/Fax: +380 (3259) 213-69, 210-90
Ms. Zoryslava Romoska
Member of Parliament (represents Tavoriv)
Verkhovna Rada of Ukraine
2 Shovkovychna St., Office 417
Tel: +380 (44) 291-7372, 291-7097
Fax: +380 (44) 293-0427
Dr. Ihor Yukhnovskiy
Member of Parliament
Verkhovna Rada of Ukraine
3 Sadova St., Office 319
Tel: +380 (44) 293-3361, 226-2900
Fax: +380 (44) 293-0414, 226-2420
Ms. Kristina Marlow
U.S. Embassy Kyiv, Economic Officer
Tel: +380 (44) 246-9750
Fax: +380 (44) 244-7350
Mr. Yuriy Prykhodko
U.S. Commercial Service, Kyiv
Tel: +380 (44) 417-2669
Fax: +380 (44) 417-1419
Email: Yuriy.prikhodko@mail.doc.gov
|
