Ukraine seeks to increase share of processing in GDP structure - economy ministry

The strategy for the development of the Ukrainian economy provides for the stimulation of industries with high added value, primarily processing enterprises.

That’s according to Deputy Minister of Economy Nadiia Bihun, the ministry’s press service reports, Ukrinform saw.

"When forming a strategy for the development of the real sector of the economy, we should focus on stimulating industries with high added value. And an important sector here is processing... Therefore, we are trying to increase the share of processing in the GDP structure from the current 10% to at least 20%," said Bihun.

According to the official, in the conditions of complicated export logistics, new solutions are needed, the most important of which is to increase the added value per unit of exported products.

"Now we are implementing programs to stimulate processing. The first is grants of up to UAH 8 million that can be obtained if the enterprise is located in ordinary territories. In this case, the financing is in the proportion of 50% to 50% - half is given by government and another half must be secured by the applicant. Another program operates in the de-occupied territories, where 80% is financed by government, and 20% - by the applicant. In the near future, we intend to focus our efforts on the areas requiring wider restoration. The implementation of such programs should become the basis for the return of Ukrainians who fled country because a mandatory condition for receiving funds is creating at least 25 jobs," Bihun explained.

According to her, the Ministry of Economy is currently in talks with local authorities to engage them in co-financing of processing programs. After all, an additional financial incentive can serve as a magnet for businesses, which in turn will lead to regional development.

Bihun called on them to decide which enterprises their respective regions need in place. As a positive example, she noted a local community in Lviv, which is already co-financing projects in the processing industry.