State support for industrial parks: which costs the state compensates in 2026

Tax incentives are not the only form of support for industrial parks. The state also compensates part of the cost of developing the territory and connecting to engineering and transport networks. This is direct budget money available to park initiators, management companies and participants. Here is how the mechanism works in 2026.

What state support for industrial parks is

The mechanism is provided for by the Law of Ukraine "On Industrial Parks" No. 5018-VI, and the procedure for providing funds to develop industrial parks was approved by Resolution of the Cabinet of Ministers of Ukraine No. 644 of 4 June 2024. This is not a tax break but direct budget financing of part of the costs.

The logic is simple: the state wants production to start sooner, and the longest and most expensive stage for any greenfield site is the utility networks. By compensating the connection, the state removes the riskiest part of the budget from the investor.

Which costs are compensated

The procedure covers costs related to connecting to engineering and transport networks, in particular:

• electricity distribution systems;
• gas supply;
• heat and water supply, wastewater disposal;
• railway tracks and access roads;
• communication lines.

Compensation of up to 100% of the applicant's connection-related costs is possible. The specific ceilings, order of review and list of supporting documents are set by the procedure itself — and that is where most of the practical detail sits.

Who can apply

• initiators of an industrial park;
• management companies;
• participants of industrial parks.

The common requirement is that the park must be included in the Register of industrial parks maintained by the Ministry of Economy. Applications are filed with the Ministry, and notices about the start and deadlines of application windows are published on its website.

How it changes the project economics

Connecting a multi-megawatt production facility to the grid costs tens of millions of hryvnias and takes anywhere from several months to several years. For an investor it is both the largest capital item outside construction itself and the biggest source of delay.

Compensating these costs changes two parameters of the investment model: it reduces the capital needed at the start and shortens the payback period. Combined with tax incentives for park participants — the ten-year zero profit tax rate and the VAT and duty exemption on equipment — this forms a package comparable to investment regimes in neighbouring EU countries.

What an investor should do

1. Check the park's status in the Register. Without it neither tax incentives nor state support are available.
2. Agree in advance with the management company who files the application — the initiator, the management company or you as a participant. This determines whose costs are compensated.
3. Document the technical conditions. Compensation is tied to confirmed costs, not intentions.
4. Follow the Ministry of Economy announcements about application windows: the mechanism runs in waves and deadlines are limited.

Context for Terezyne Industrial Park

Terezyne is a greenfield site of 14.9882 hectares at the 82nd kilometre of the Kyiv–Odesa highway (M05/E95) in the Bila Tserkva district of Kyiv region, created for a 30-year term. Available electrical capacity is 80 MW (two 40 MW transformer groups), gas supply is provided for, and the location on the highway gives access for heavy freight transport.

For potential residents this means the key infrastructure question is handled at park level rather than falling on each investor separately. Entry terms are on the Residents page, and location and logistics details are in the Location section.

Planning production in the Kyiv region? Write to us and we will prepare an offer for your specification.