Financial sector news

The Ministry of Economy, Environment and Agriculture has approved the first grant under the new direction of the “Grants for Processing Enterprises” program. Funding will be provided to a tea production company in Dnipro that lost its production facilities as a result of an enemy drone strike. The funds will be used for the purchase and installation of new equipment.

“Today, the enemy is systematically destroying our industry, and the task of the state is to help Ukrainian manufacturers whose facilities have been damaged. The government has created an effective tool for this – a recovery grant: up to UAH 16 million can be allocated to affected businesses for new equipment and production recovery. We have approved the first such grant for a business in Dnipro, and this is a signal for other enterprises to apply for funding. The program will also be continued next year,” — emphasized Oleksii Sobolev, Minister of Economy, Environment and Agriculture.

Recovery grants operate on a co-financing basis: the state covers 80% of the project cost, while the owner contributes 20%. The maximum amount of support is UAH 16 million, but not more than the actually confirmed damages. As with all grants under the program, a mandatory requirement is the creation of at least five new jobs and repayment of the grant amount through taxes within three years.

To receive funding, enterprises must submit an application with a business plan via the Diia platform. The document package must include an extract from the Unified Register of Pre-Trial Investigations (ERDR) on a wartime emergency and an expert report on damages.

As part of the latest wave of the program, 13 additional applications for grants for the development of processing enterprises were approved, totaling UAH 59.5 million. Among the winners are furniture manufacturers, producers of building materials, food companies, UAV manufacturers, as well as printing and woodworking companies.

Since the beginning of the year, 280 positive grant decisions have already been made for the processing industry, amounting to UAH 1.4 billion. The funds are directed towards purchasing equipment, modernizing production, launching new lines, and creating jobs.

The “Grants for Processing Enterprises” program is part of the “Made in Ukraine” policy and provides flexible co-financing conditions: 50%–50% in the standard option, 70%–30% when purchasing Ukrainian-made equipment, and 80%–20% for frontline and de-occupied territories, as well as for UAV manufacturers and printing companies.