Investment support in action: the state has opened a “green corridor” for soybean processing business
26 March 16:24
The government has authorized the duty-free import of equipment for Astarta Agro Protein’s first investment project. The equipment is needed for a deep soybean processing plant to be launched in Poltava region, Komersant ukrainskyi reports, citing the Ministry of Economy of Ukraine.
“We have four more large investment projects under consideration, and we see a growing interest of businesses in the program. The permit for duty-free import of equipment for the Astarta plant is the first precedent that confirms the effectiveness of this model,” said Vitaliy Kindrativ, Deputy Minister of Economy of Ukraine.
“Poltava region is one of the largest soybean producers in Ukraine, so the location of the plant in the region is logical from a logistical and economic point of view. The plant will allow us to process raw materials on site, increasing the added value of our products. The company implements modern environmental standards, minimizing its environmental impact.
What preceded it
In October 2024, the Government launched an “investment nanny” program. As part of this project, the Cabinet of Ministers signed an investment agreement with Astarta Agro Protein LLC.
The company received a number of incentives:
- exemption from import duties on new equipment;
- exemption from import VAT on new equipment;
- income tax exemption for up to five years.
The company is investing more than €76 million to purchase equipment and technologies to better process agricultural products. This will create 110 new jobs, contribute to the development of the processing industry in the region, and help introduce new approaches to growing and processing soybeans, the statement said.
What is known about Astarta Agro Protein LLC
The legal entity Astarta Agro Protein LLC was registered on October 6, 2021. The authorized capital of the legal entity is UAH 6,500,000.
The authorized person is Igor Lumpiev. The ultimate beneficiaries are Iryna and Viktor Ivanchyk.
The company specializes in the production of oil and animal fats; production of ready-made feed for animals kept on farms; water intake, treatment and supply.
What you need to know about the Government’s Investnanny project
“Investnanny” is an informal name for the government program to support large investors in Ukraine. Officially, it is called the Law on State Support for Investment Projects with Significant Investments, or simply the law on “investnianyas,” which came into force in 2021.
What does the nanny program entail?
Foreign and Ukrainian investors who invest from €12 million in new projects in Ukraine can count on
- tax benefits – reduction or exemption from certain taxes (e.g., income tax)
- customs preferences – simplified import of equipment without duty;
- infrastructure support – the state can build roads, power substations, communications, etc;
- an investment manager (“nanny”) – a personal coordinator from the government who accompanies the investor and helps to resolve bureaucratic and administrative issues.
In what areas does it work?
Mostly industry, energy, agricultural processing, transport infrastructure, IT, and industrial parks.
Why does Ukraine need it?
The program is aimed at attracting large investments, creating jobs and developing regions. This is one of the ways to make Ukraine more attractive to foreign capital in competition with other countries in Central and Eastern Europe.
