The law on «investment nannies» has failed: only 5 applications in two years

In February 2021, the so-called «investment nannies law» came into force. He predicted that investors who implement large projects in Ukraine will be able to receive state support in the form of tax benefits, the granting of the right to use land under special conditions, the construction or reconstruction of the necessary infrastructure at the expense of the state. It sounded attractive, but …

During the two years of the law, Ukraine received only 5 applications and actually did not attract investments within the framework of this program with the planned 11 billion hryvnias. Now, associating the failure of the project with the war, the government proposes to improve the provisions of the law, in particular to expand the list of areas for investment, and again predicts hundreds of millions of investments.

However, officials miss an important point. None of the investments will work if Ukraine does not provide favourable conditions for doing business.

«Instead of a long line of people willing to use individual investment support, we see a scant number of applications, only five. And that’s in two years. What is important to investors is not the special attention of officials, but the radical improvement of the country’s investment and business climate. This did not happen», comments economist, scientific director at the Institute of Economic Leadership Yaroslav Romanchuk.

Investors will not be able to be attracted by another «cosmetic» draft law, but by real changes in the sphere of the economy and the rule of law.