Government investment promotion programmes 

Does the state have a foreign investment promotion programme? 

Ukraine actively promotes foreign investment through several key initiatives as follows: 

  • Law on Investment Nannies (2021): Enacted on 13 February 2021, the Law of Ukraine No. 1116-IX ‘On State Support of Investment Projects with Significant Investments’, commonly referred to as the ‘Investment Nannies Law’, aims to attract significant foreign and domestic investments by providing state support to large-scale investment projects. The law introduces a framework for facilitating investments exceeding €20 million by offering various incentives, legal guarantees, and dedicated support services to eligible investors. The Investment Nannies Law represents a strategic initiative by the Ukrainian government to attract and facilitate significant investments by offering a comprehensive package of incentives and dedicated support services. By providing tax benefits, customs exemptions, infrastructure assistance, and personalised support through an assigned manager, the law aims to improve the investment climate and stimulate economic growth in priority sectors. 
  • UkraineInvest: This state agency serves as the primary manager of Ukraine’s investment promotion programme. It offers support for significant investment projects and facilitates access to state support mechanisms. 
  • Ukraine Facility Programme: This programme is a European Union financial assistance initiative running from 2024 to 2027, allocating €50 billion to Ukraine. It aims to finance the state budget and stimulate investment by mitigating risks for private and institutional investors. 
  • Regional Investment Promotion: Local government bodies conduct additional investment promotion activities, often through tailored regional investment programmes. 

Applicable domestic laws 

Identify the domestic laws that apply to foreign investors and foreign investment, including any requirements of admission or registration of investments. 

The main domestic laws that apply to foreign investors and foreign investment are as follows: 

  • Law of Ukraine No. 93/96-ВР, dated 19 March 1996 ‘On the Regime of Foreign Investments’; 
  • Law of Ukraine No. 1540а-XII dated 10 September1991 ‘On the protection of foreign investment in Ukraine’; 
  • Law of Ukraine No. 1560-XII dated 18 September 1991 ‘On Investment Activity’; 
  • Law of Ukraine No. 1116-IX  dated 17 December 2020 ‘On State Support for Investment Projects with Significant Investments in Ukraine’; 
  • The Law of Ukraine ‘On Public-Private Partnership’ (No. 2404-VI, dated 1 July 2010); 
  • The Law of Ukraine ‘On Concession’ (No. 155-IX, dated 3 October 2019); 
  • The Law of Ukraine ‘On Production-Sharing Agreements’ (No. 1039-XIV dated 14 September 1999); and 
  • The Law of Ukraine ‘On the Privatisation of State and Municipal Property’ (No. 2269-VIII dated 11 January 2001) 

In addition to these specialised laws, a number of other legislative acts are applicable, such as the Civil Code of Ukraine, the Commercial Code of Ukraine, the Tax Code of Ukraine, the Land Code of Ukraine and the Custom Code of Ukraine. 

These acts together with bilateral investment treaties may provide requirements for admission of investment.  

There is no requirement to register an investment. Foreign investors were registering their investments before the enactment of the Law of Ukraine No.1390-VIII, dated 31 May 2016, ‘On Amendments to Certain Legislative Acts of Ukraine Concerning the Abolition of Mandatory State Registration of Foreign Investments’.  

Relevant regulatory agency 

Identify the state agency that regulates and promotes inbound foreign investment. 

  • UkraineInvest: Established by the Ukrainian government in 2018 and functions as the country’s official investment promotion office. In this capacity, it provides comprehensive support to investors, offering reliable and current information, guidance on conducting business in Ukraine, and assistance in identifying optimal investment opportunities. The agency also plays a crucial role in facilitating communication between investors and government entities at various levels, while working to address systemic challenges that investors may encounter. Complementing UkraineInvest’s efforts, the Ministry of Economy of Ukraine maintains a significant influence in shaping the nation’s investment policy framework. 
  • The National Investment Council: The Council is an advisory body to the President of Ukraine, which advises on policies to improve the investment climate and coordinates between investors and government agencies.  
  • State Property Fund: Manages privatisation processes and oversees state property transactions.  
  • Ministry of Economy: Develops economic policies, including those related to investments and public-private partnerships (PPPs). 

Relevant dispute agency 

Identify the state agency that must be served with process in a dispute with a foreign investor. 

In investment arbitration proceedings, the Ministry of Justice is the designated body to receive service of process on behalf of the state. 


Source: https://www.lexology.com/library/detail.aspx?g=43249f09-2c4d-452b-81c9-96c7149989c1