Ukraine

Ukraine cancels registration of seven industrial parks with no signs of development

The Cabinet of Ministers of Ukraine has decided to exclude seven industrial parks from the state register, recognizing that for many years they existed only formally. Despite the declared creation, these sites have never turned into full-fledged production zones and have failed to interest investors. AgroReview

The main reason for this step was the complete lack of progress in the development of the parks over the past three years. According to the assessment of the relevant ministries, no industrial enterprises have appeared in any of these territories that could give a boost to the local economy. The lack of capital investments, engineering networks and basic infrastructure made these facilities unsuitable for launching production.

“It is difficult to imagine a serious business that would want to build workshops in an open field without electricity, water and gas. That is why these parks were never able to start real economic activity. They remained only ambitious projects that did not stand the test of time and economic realities,” the assessment of the situation states.

The initiators of the creation of industrial parks counted on the arrival of investors without first providing the necessary conditions. However, private business is not ready to invest in sites that do not have basic infrastructure to start production.

Exclusion from the state register does not mean the final cessation of the existence of these sites. The owners were given six months to eliminate the identified shortcomings. In the event of modernization of the infrastructure, they will be able to re-apply for restoration of the status, but until then the parks will remain without state support and benefits.

The list of excluded sites includes facilities from different regions of Ukraine – both those created in 2017 and newer sites, in particular in Transcarpathia. Among them are the Zolotonosha, Kamyanka-Buzky and Novorozdilskyi industrial parks, which for almost nine years have not been able to move from plans to real work.

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