On 23 March 2017, the Ukrainian Parliament passed the Law on State Investment Projects (the “Law”), which aims to improve the mechanism of state support for investment projects and to better the evaluation, selection and monitoring of investment projects which are implemented using state budgetary funds.

Under the Law, the role of the State Register of Investment Projects is changed from regulatory to informative. As a result, the procedure for obtaining state support for investment projects has been simplified. In particular, it is no longer required that investment projects or proposals be registered in the said register to qualify for state support.

Moreover, the Law provides for the possibility of obtaining state or municipal investment in private property objects, subject to an equity share in a private company being passed to the respective authority in proportion to the investment made. The Law also means the state can make loans to finance investment projects.

Furthermore, the Law aims to promote the decentralization of state power in Ukraine, and ensure decision-making on certain projects is delegated to municipal authorities. Thus, local investments and support for investment projects from local budgets and/or loans can be acquired based on the procedure established by municipal authorities themselves, in compliance with general budgetary laws.

The Law will come into force upon its promulgation.  

Source: Text of the draft Law of Ukraine “On Amendments to the Law of Ukraine “On Investment Activity” in relation to the State Investment Projects” No. 5105 as prepared for the second reading.