Large-scale incentives for businesses and residents are being prepared for frontline regions

Ukraine is launching a new comprehensive support package for frontline territories, where the war has already significantly impacted the economy, jobs, and people’s lives, and where it is becoming increasingly difficult for businesses to operate and recover without additional incentives.

Prime Minister Yulia Svyrydenko announced this, noting that the government, together with members of parliament, is working on a system of solutions designed to help communities maintain economic activity and keep people in their regions. “The government’s priority is to create conditions so that businesses and people can stay and work in their communities,” Svyrydenko emphasized.

According to official data, about 86% of communities affected by hostilities are already included in the list of frontline territories, and these regions are experiencing a decline in investment, job losses, and reduced revenues to local budgets.

One of the key elements of the new package will be a system of tax and credit incentives, as well as the expansion of business support programs, including granting enterprises critical infrastructure status, which will allow them to maintain economic activity even under difficult conditions. The government is paying special attention to compensation for damaged property: 90 applications from enterprises totaling approximately 1.5 billion hryvnias have already been approved, and the first payments are expected to begin shortly.

Additionally, as part of the “Made in Ukraine” program for frontline regions, increased grants for small businesses are available—up to 500,000 hryvnias, which is 30% higher than the standard amount—along with expanded opportunities to obtain financing for equipment and production restoration.

For farmers in combat zones, increased compensation is provided for the purchase of domestic equipment—up to 40% instead of the standard 25%—and mechanisms are in place to reimburse a portion of salaries and the unified social contribution during the period of business recovery.

Additionally, the government is developing a war risk insurance program that allows businesses to cover losses from destruction up to 30 million hryvnias, which is intended to serve as one of the tools for stabilizing the economy in frontline communities.