Ukraine's economic development strategy includes the promotion of high-value-added industries, with a primary focus on processing companies. Deputy Minister of Economy of Ukraine, Nadiia Bihun, highlighted this during her speech at the Regional Economic Forum

"When formulating a strategy for developing the real sector of the economy, our focus should be on stimulating industries with high added value, and processing plays a pivotal role in this context. Let me provide you with an example: if you merely sell wheat, the conventional value is USD 300 per tonne, resulting in an added value of only USD 90. However, when you process it into flour, the added value increases to $220. If you further refine it into a more complex product like gluten, the added value escalates to $550. This principle applies to various products; for instance, while a cubic meter of wood yields a mere USD 26, the value added through the production of plywood from it is USD 190, and for cabinet furniture, it reaches USD 290. Hence, our objective is to elevate the share of processing in the GDP structure from the current 10% to at least 20%," explained Nadiia Bihun.

According to her, in the face of complicated export logistics, new solutions need to be sought, including increasing the added value per unit of exported products.

" We are currently implementing programs aimed at promoting recycling. The first program offers grants of up to UAH 8 million, which are available to companies located in the regular territories. In this case, funding is provided on a 50%-50% basis, with half being contributed by the state and the other half by the applicant. The second programme operates in the de-occupied territories, where 80% is funded by the state and 20% by the applicant. In the near future, we plan to concentrate our efforts on the areas that need more restoration. The implementation of such programmes should become the basis for the return of those Ukrainians who have moved abroad, as a prerequisite for receiving funds is the creation of 25 jobs," explained Nadiia Bihun.

According to her, the Ministry of Economy of Ukraine is currently negotiating with local authorities to ensure that they also join in co-financing recycling incentive programmes. After all, an additional financial incentive can become a "magnet" for business, which in turn leads to regional development.

She urged them to determine what kind of enterprises are needed in certain regions. She cited the positive example of the local community in Lviv, which has already joined in co-financing the development of projects in the processing industry.

Background

You can submit your grant applications through the Diia portal. The Government's eRobota project encompasses grant programs designed to promote entrepreneurship and job creation. Apart from grants tailored for the establishment and growth of processing enterprises, initiatives are also in place to support individuals in launching or expanding their own businesses, fostering orchards, and advancing viticulture or greenhouse farming.