WORLD TRADE  
ORGANIZATION   
G/SCM/N/220/UKR 
7 July 2011 
 (11-3336) 
Committee on Subsidies and 
Countervailing Measures Original:   English 
 
 
 
SUBSIDIES 
 
New and Full Notification Pursuant to Article XVI:1 of the 
GATT 1994 and Article 25 of the Agreement on 
Subsidies and Countervailing Measures 
 
UKRAINE 
 
 
 The following notification, dated 1 July 2011, is being circulated at the request of the Delegation of Ukraine.   
 
_______________ 
 G/SCM/N/220/UKR 
Page 2 
 
 
  TABLE OF CONTENTS 
 
   Page 
 
 
INTRODUCTION .................................................................................................................. ................ 3  
I.  PART I.  HORIZONTAL PROGRAMMES .......................................................................... 4  
1. Special economic zones a nd priority territories ..................................................................... 4  
2.  Technological parks ........................................................................................................... ....... 4 
3.  State support to realization of innovative and investment projects in the real 
sector of economy ............................................................................................................. ......... 7 
II.  PART II.  SECTOR AL PROGRAMMES .............................................................................. 8  
1.  Shipbuilding .................................................................................................................. ............ 8 
2.  Aircraft ...................................................................................................................... .............. 10  
3.  Coal Mining ................................................................................................................... .......... 14 
4.  Book-Publishing ............................................................................................................... ....... 17  G/SCM/N/220/UKR 
 Page 3 
 
 
  INTRODUCTION 
 This notification was prepared pursuant to Article XVI:1 of the GATT 1994 and Article 25 of 
the Agreement on Subsidies and Countervailing Measures.    
This notification relates to subsidies gran ted in 2009 and 2010, and provides statistical 
information for respective years.   
 
 In preparing this notification, Ukraine has taken into account applicable "General Rules" 
listed in G/SCM/6/Rev.1.   G/SCM/N/220/UKR 
Page 4 
 
 
  I. PART I.  HORIZONTAL PROGRAMMES 
1. Special economic zones and priority territories 
 In reporting period the investment projects in SEZ and Priority Territories are implemented 
under the regular tax regime.  
 
 During reporting period there were not any chang es in respect to policy/objective, background 
and authority, form of the subsidy, to whom a nd how the subsidy is provided, in comparison with 
information given in G/SCM/N/155/UKR of 26 May 2008 and G/SCM/N/186/UKR of 3 July 2009.   
 Some tax privileges were granted to some enterprises by judgement of courts only. 
  Total amount: 
 
Form of Subsidy SEZ, thousand UAH Priority Territories,  
thousand UAH 
 2009 2010 2009 2010 
Exemption from income tax 90,1 0 0 5 313,0 
Exemption from import duties 0 0 0 0 
Deferment of VAT 68 708,7 140 401,9 0 0 
Exemption from land tax 0 0 0 0 
 
2. Technological parks 
 Policy objective and/or purpose 
 
 Encourage investment, promotion of resear ch and development of new technologies.   
 
 Background and authority 
 
 The basic legislative acts providing for the establishment and functioning of the technological 
parks are contained in:   
  - Law of Ukraine "On Changes to the Law of Ukraine "On Special Regime of 
Innovation Activity of the Technological Park s" and other laws of Ukraine" of 
12 January 2006 No. 3333-IV (with changes and amendments);   
 
 - Law of Ukraine "On priority directions of the science and technology development" 
of 11 July 2001 No. 2623-III (with changes and amendments);   
 
 - Law of Ukraine "On priorities of the Innovation Activity in Ukraine" of 
16 January 2003 No. 433-IV (with changes and amendments);   
 
 - Decree of the Cabinet of Ministers of Ukraine of 17 December 1999 No. 2311 (with 
changes and amendments) approving the Proce dure of Consideration and Approval of 
the Priority Directions of Activity of the Technological Park, the Procedure of 
Consideration, Examination and Registrati on of Technological Park's Projects;   
 
 - Decree of the Cabinet of Minister s of Ukraine of 23 November 2006 No. 1643 
approving the procedure of accumulation of corporate income tax amounts on special account of technological park, use and control of such amounts;   
  G/SCM/N/220/UKR 
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   - Decree of the Cabinet of Ministers of Ukraine of 21 March 2007 No. 517 approving 
the procedure of control and monitoring of the technological parks projects 
implementation;   
 
 - Decree of the Cabinet of Ministers of Ukraine of 29 November 2006 No. 1657 
approving procedure for state registration of technological parks.   
 
 Incentives offered in the form of import duty and internal tax exemptions are reflected in the 
relevant tax laws.   
 
 Corporate Income Tax  
- Law of Ukraine "On Corporate Income Tax" as of 28 December 1994 No. 334/94-VR (with 
changes and amendments).   
 
 Import duties 
 - Law of Ukraine "On Common Customs Tari ff" of 5 February 1992 No. 2097-XII (with 
changes and amendments);  and 
 - Law of Ukraine "On Customs Tariff of Ukrain e" of 5 April 2001 No. 2371-III (with changes 
and amendments); 
 - Law of Ukraine of 31 May 2007 No. 1109-V "O n amendments to the Customs Tariff of 
Ukraine". 
 
 VAT 
 - Law of Ukraine "On Value Added Tax" of  3 April 1997 No. 168/97 (with changes and 
amendments).   
  Form 
  Tax exemptions/deferral and credits support.    
 Explanation of benefits 
 
 Exemption from income tax.   
 
 Sums of income tax are accumulated on a speci al account and used for science, scientific and 
technical activity, development of the park's scien tific and technological and research and exploratory 
development basis only.   
 
 VAT payment deferral 
  The promissory note for 720 calendar days is  used for tax obligations while importing new 
equipment and parts and for 180 calendar days wh ile importing materials which are not produced in 
Ukraine (in both cases).  The period is calculated from the day when the promissory note is given to 
the customs authority.   
 G/SCM/N/220/UKR 
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   Exemption from payment of import duties 
 
 New materials, equipment, component parts used as inputs in projects could be imported 
duty-free if they are not produced in Ukraine.   
 
 Loan support 
 
 Since 2006 each year the State Budget of Ukraine foresees certain budget for:   
 
 Full or partial (up to 50 per cent) loans with zer o interest (with inflation indexation) for park's 
projects;   
 
 Full or partial compensation of interest paid by park's project implementation authority to 
commercial banks and other finance institutions for loans for park's projects.   
 
 In 2009 and 2010 there has not been foreseen an y funds in the State Budget for loan support. 
  Beneficiaries 
  Beneficiaries of the favourable regime are te chnological parks, their participants and joint 
enterprises implementing innovative projects in priority areas.   
 
 Technological park – is a legal person or associ ation of legal persons which are implementing 
innovative projects, implication of high technology developments.   
 
 Priority directions for each park are develope d according to the Law of Ukraine "On Priority 
Directions of Science and Technology Developmen t" of 11 July 2001 No. 2623-III, Law of Ukraine 
"On Priorities of Innovative Activity in Ukraine" of 16 January 2003 No. 433-IV, considered by the 
Presidium of the National Academy of Science an d approved by the central government authority 
responsible for science issues.   
  Amount 
 
 2009, 
million UAH 2010, 
million UAH 
Exemption from income tax (usage of sums of income tax 
that are accumulated on a sp ecial accounts of parks and 
projects) 1,547 29,3 
Credit support (Full or partial compensation of interest paid 
by park's project implementation authority to commercial 
banks and other finance institutions for loans) Not applied Not applied 
Exemption from payment of import duties 3,436 4,9 
VAT payment deferral 1,4 0 
 
 Duration 
 
 The favourable regime for technological parks established for the period of 15 years.   
  Trade effects 
  It is not possible to estimate what, if any,  trade effects may result from the use of the 
programs described.  
  G/SCM/N/220/UKR 
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  3. State support to realization of innovative a nd investment projects in the real sector of 
economy  
 Policy objective and/or purpose 
 
Support to realization of innovative and investment projects in the real sector of economy , 
introduction of advanced technologies. 
 Background and authority  
The Law of Ukraine "On the state budget on 2010" of 27 April 2010, No. 2154-VI provides 
funds in amount 1 000 000,0 thousand UAH. 
 Decree of the Cabinet of Ministers of Ukraine of 16 June 2010 No. 476 approves the 
procedure for use of funds of the Stabilization Fund in 2010 for the state support to realization of 
innovative and investment projects in the real sector of economy, including cheaper loans.  
 Form 
 Compensation of interest rate on the loan 
 
 Funds allocated to compensation of interest ra te on the loans taken by enterprises in national 
currency and/or in foreign currency, including loans from the foreign financial institutions, for 
realization of innovative and investment projects. 
  Compensation is given for amount actually paid  for loans in amount of 1,2 of the National 
Bank rate at the date of calculation of interest rate of the loans. 
  Сo-financing of realization of investment project 
 
 State support of investment project by co-financ ing (state investment) is subject to size of 
state corporate rights what should exceed 25% of authorized capital of the winner. 
 
 Beneficiaries 
 
 Enterprises that realize innovative and investme nt projects selected on a competitive basis in 
accordance with the procedure approved by the Order of State Agency on investments of 
10 August 2010 No. 39.  The Order defines cert ain criteria for selection such as science and 
technology, production, marketing, financial, social and ecological factors. 
 
 Amount 
 
Form 2010, thousand UAH 
Compensation of interest rate on the loan 222 522,5 
Сo-financing (state investment) None 
 
 Duration 
 
 During  2010.   
 G/SCM/N/220/UKR 
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   Trade effects 
 
 It is not possible to estimate what, if any,  trade effects may result from the use of the 
programs described.   II. PART II.  SECTORAL PROGRAMMES 
 The legislative bases for Ukraine's sect oral assistance programs are found in:   
  - Enabling legislation specific to the sector  itself (shipbuilding, aircraft etc.) cited 
below for each Sector;  and 
  - The law applying a particular tax meas ure under for which assistance is provided 
(exemptions or deferral for import duties, VAT etc.). 
 Law on state budget for current year.   
 
 The Sector specific enabling legislation is identified under each of the supported sectors listed below.  The relevant tax laws providing bene fits to enterprises in supported sectors are:   
 
 - Law of Ukraine "On State Budget of Ukraine for 2009" No. 835-VI as of 
26 December 2008; 
 - Law of Ukraine "On State Budget of Ukraine for 2010" No. 2154-VI as of 
27 April 2010;  
 Import duties 
 
- Law of Ukraine "On Common Customs Tariff" 5 February 1992 No. 2097-XII (with 
changes and amendments);  and 
  - Law of Ukraine "On Customs Tariff of Uk raine" as of 5 April 2001No. 2371-III (with 
changes and amendments);   
  - Law of Ukraine of 31 May 2007 No. 1109-V "On amendments to the Customs Tariff 
of Ukraine"; 
 VAT 
 
 - Law of Ukraine "On Value Added Tax" as of 3 April 1997 No. 168/97 (with changes 
and amendments);   
 
 Income Tax 
  - Law of Ukraine "On Corporate Income Tax" as of 28 December 1994 No. 334/94-VR 
(with changes and amendments).   
 1. Shipbuilding 
 Policy objective and/or purpose 
 
 The overall objectives for providing assistance to the shipbuilding industry are to:   
  G/SCM/N/220/UKR 
 Page 9 
 
 
  - Promote better use of the industry's existing production and Research and 
Development facilities;  and  
 
- Encourage new investment in the indus try to achieve greater efficiency and 
competitiveness.   
 
 Background and authority 
 
 Subsidy measures are provided under the Law of  Ukraine "On Measures of State Support for 
the Ship-Building Industry in Ukraine" No. 1242-XIV (amended as of 15 June 2004 No. 1766-IV) 
and the Decree of the Cabinet of Ministers of  Ukraine No. 1256 of 21 December 2005 (with changes 
and amendments) approving the list of enterprises-bene ficiaries of support of shipbuilding industry.   
 
 Form 
 
 Deferral of Corporate Income Tax.   
  At option of an eligible shipbuilder, adva nce payments received from a customer and 
earmarked loans received for financing of seagoing crafts, river boats and other floating means may 
be placed in a special account and be exempt fro m withholding tax.  Funds in such accounts may only 
be used to meet costs associated with fulfilling the contract under which the advance payments are 
made or earmarked loans are received.  In the fiscal year in which the builder delivers the ship to the 
customer, payments to and from the special account are included in gross revenue/expenditure for the 
purpose of calculating profit for corporate income tax.   
 
 Credit support 
 
 Since 1 January 2005, the support of seagoing crafts, river boats and other floating means, 
building and reconstruction of basic production a ssets of shipbuilding industry was exercised by 
partial compensation of the interest paid to comme rcial banks for the provided credits.  Every year a 
certain budget allocation is foreseen by the Law of  Ukraine "On State Budget" for providing such a 
support.   
 
 The procedure of use of such allocations from the State Budget is annually determined by the 
Cabinet of Ministers of Ukraine.   
 
 Though, in 2009 and 2010 no allocations were made for this purpose.  
 Beneficiaries 
 
 The Cabinet of Ministers of Ukraine approv es a list of eligible shipbuilding enterprises 
according to the order determined in the Decree of Cabinet of Ministers of Ukraine of 12 July 2005, 
No. 555.  The current approved list of enterprises appears in the Resolution of the Cabinet of 
Ministers of Ukraine of 21 December 2005, No. 1256 (last changes – by Decree of Cabinet of 
Ministers of Ukraine of 10 June 2009 No. 574).    
 Amount 
 
 2009, million UAH 2010, million UAH
Deferral of Corporate Income Tax 8 597,8 452,6 
Credit support Not applied Not applied 
 G/SCM/N/220/UKR 
Page 10 
 
 
   Duration 
 
 Until 1 January 2012.    
 Statistics for evaluation of trade effect 
 
Amount of production 2009 , million UAH 2010, million UAH 
Seagoing crafts and other floating 
means 556,4 795,9 
 
2. Aircraft 
 Policy objective and/or purpose 
 
 The overall objective for providing aid to the ai rcraft construction industry is to promote an 
efficient use of existing production, research and de velopment facilities and to encourage investment 
to provide for modernization of the industry.    
 Background and authority 
 
 In 2009 in accordance with the Law of Ukraine of 26 December 2008 No. No. 835-VI part of 
the budget of the Stabilization Fund is directed to  finance investment pr ojects of the aircraft 
enterprises.  
The Decree of the Cabinet of Ministries of Ukraine of 28 April 2009 No. 409 approves the 
Order of application in 2009 of funds of the St abilization Fund foreseen in the state budget in 
accordance with Art. 76 of the Law of Ukraine of 26 December 2008 No. 835-VI.   
 
 The Resolution of the Cabinet of Ministries of Ukraine of 22 April 2009 No. 447-r approves 
the Order of financing of investment projects of the aircraft enterprises. 
 In 2010 support is provided in accordance w ith the Law of Ukraine of 20 January 2010 
No. 1814-VI "On amendments to some of the laws  of Ukraine concerning state support to aircraft 
industry in Ukraine". 
 Also by the law No. 2154-VI of 27 April 2010 "On the State Budget of Ukraine in 2010" it is 
foreseen compensation of interest rates for credits taken by aircraft enterprises for realization of 
investment projects.  The Resolution of the Cabinet of Ministers of 22 April 2009 No. 447-r approves 
the procedure for financing of investment project s that implemented by the aircraft enterprises. 
 The Decree of the Cabinet of Ministries of Ukraine of 21 July 2010 No. 680 "On import on 
the customs territory of Ukraine of goods by airc raft enterprises" clarifies requirements concerning 
eligible import volumes and ensuring of its proper end use. 
 Form 
 
 Loan support 
  The state enterprises receive loans with zero inter est rate for realization of certain investment 
projects.  G/SCM/N/220/UKR 
 Page 11 
 
 
   Beneficiaries 
 
 Three state aircraft enterprises that  used loans for full-scale production of АN-148 and АN-74 
aircrafts and for modernization and repa ir of AN-24, AN-26, AN-32 aircrafts. 
Amount 
 
 2009, million UAH 
Credit support  260 
 
 Duration 
 
 During 2009.   
  Statistics for estimation of trade effects 
  
 2009, million UAH 
Production by beneficiaries, total 2 739,012 
 
 Compensation of interest rates on loans  
 Partial compensation of interest rates on loans taken by aircraft enterprises for 
implementation of investment projects. 
 Exemption from import duty  
 In accordance with item "r" of first part of Art. 19 of the Law "On Common Customs Tariff" 
exemption from import duty concerns goods, what imported (reimported) by aircraft enterprises 
eligible by the Art.2 of the Law "On aircraft i ndustry development", by such HS (UKTZED) codes:  
2707 20 90 00, 2707 30 10 00, 2707 60 00 00, 2710 11 21 00, 2710 19 81 00, 2710 19 99 00, 2712 20 
90 00, 2805 30 90 00, 2818 10 90 00, 2827, 2835, 3204 90 00 00, 3207 40 30 00, 3208, 3209, 3211 00 
00, 3214 10 10 10, 3603 00, 3604 90 00 00, 3703 10 00 00, 3703 90 10 00, 3824 10 00 90, 3824 90 35 
00, 3824 90 40 00, 3824 90 50 00, 3824 90 65 00, 3901, 3909, 3911, 3917, 3919, 3920, 3921, 4002, 
4005, 4006 90 00 00, 4006 90 00 90, 4008, 4009, 4011 30 10 00, 4016, 4017 00, 7003, 7007, 7019, 
7202, 7205 10 00 00, 7205 29 00 00, 7207, 7208, 7209, 7211, 7212, 7213, 7214, 7215, 7217, 7218, 7219, 7220, 7221 00 10 00, 7223, 7224 90 18 00, 7225, 7226, 7227, 7228, 7229, 7304, 7311 00 10 00, 
7312, 7315, 7318, 7326, 7407, 7409, 7411, 7413 00, 7419, 7502, 7504 00 00 00, 7505, 7506, 7507, 
7508, 7601, 7603, 7604, 7605, 7606, 7607 11 90 00, 7607 19 99 00, 7607 20 91 00, 7608, 7609 00 00 00, 7616, 8101, 8102, 8104, 8105, 8108, 8111 00 90 00, 8112, 8307, 8409 10 10 00, 8411 11 10 00, 
8411 12 11 00, 8411 12 13 00, 8411 12 19 00, 8411 12 90 00, 8411 21 10 00, 8411 22 11 00, 8411 22 
19 00, 8411 81 10 00, 8411 82 10 00, 8411 91 10 10, 8411 91 10 90, 8411 91 90 00, 8411 99 10 00, 8412 10 10 00, 8412 21 10 00, 8412 29 10 00, 8412 31 10 00, 8412 39 10 00, 8412 80 91 00, 8412 90 
10 00, 8413 19 10 00, 8413 20 10 00, 8413 30 10 00, 8413 50 10 00, 8413 60 10 00, 8413 70 10 00, 
8413 81 10 00, 8413 91 10 00, 8414 10 10 00, 8414 20 10 00, 8414 30 10 00, 8414 51 10 00, 8414 59 10 00, 8414 80 10 00, 8414 90 10 00, 8415 81 10 00, 8415 82 10 00, 8415 83 10 00, 8415 90 10 00, 
8419 50 10 00, 8419 81 10 00, 8419 90 10 00, 8421 19 10 00, 8421 21 10 00, 8421 23 10 00, 8421 29 
10 00, 8421 31 10 00, 8421 39 10 00, 8424, 8425 11 10 00, 8425 19 10 00, 8425 31 10 00, 8425 39 10 00, 8425 42 10 00, 8425 49 10 00, 8456, 8457, 8458, 8459, 8460, 8461, 8462, 8463, 8466, 8471 10 10 
00, 8471 41 10 00, 8471 49 10 00, 8471 60 10 00, 8471 70 10 00, 8473 30, 8479 89 10 00, 8481, 
8482, 8483, 8501 20 10 00, 8501 31 10 00, 8501 32 10 00, 8501 33 10 00, 8501 34 10 00, 8501 40 10 
00, 8501 51 10 00, 8501 52 10 00, 8501 53 10 00, 8501 61 10 00, 8501 62 10 00, 8501 63 10 00, 8502 G/SCM/N/220/UKR 
Page 12 
 
 
  11 10 00, 8502 12 10 00, 8502 13 10 00, 8502 20 10 00, 8502 39 10 00, 8502 40 10 00, 8504 10 10 
00, 8504 31 10 00, 8504 32 10 00, 8504 33 10 00, 8504 40 10 00, 8504 50 10 00, 8505, 8506, 8507 10 
10 00, 8507 20 10 00, 8507 30 10 00, 8507 40 10 00, 8507 80 10 00, 8507 90 10 00, 8511 10 10 00, 8511 20 10 00, 8511 30 10 00, 8511 40 10 00, 8511 50 10 00, 8511 80 10 00, 8515, 8525 10 10 00, 
8525 20 10 00, 8526 10 10 00, 8526 91 11 00, 8526 91 19 00, 8526 91 90 00, 8526 92 10 00, 8528 21 
90 00, 8529 10 10 00, 8529 90 10 00, 8531 10 10 00, 8531 20 10 00, 8531 80 10 00, 8532, 8533, 
8535, 8536, 8537, 8538 10 00 00, 8538 90 99 00, 8541, 8542, 8543, 8544, 8545, 8546, 9014 10 10 00, 
9014 20 13 00, 9014 20 18 00, 9014 20 90 00, 9014 90 90 00, 9017 20, 9017 30, 9017 80, 9020 00, 9023, 9024, 9025 11 10 00, 9025 19 10 00, 9025 80 15 00, 9025 90 10 00, 9026 10 10 00, 9026 20 10 
00, 9026 80 10 00, 9026 90 10 00, 9027, 9029 10 10 00, 9029 20 10 00, 9030 10 10 00, 9030 20 10 
00, 9030 31 10 00, 9030 39 10 00, 9030 40 10 00, 9030 83 10 00, 9030 89 10 00, 9030 90 10 00, 9031 80 10 00, 9031 90 10 00, 9032 10 10 00, 9032 20 10 00, 9032 81 10 00, 9032 89 10 00, 9033.  
 The Cabinet of Ministers approves the volume and procedure for import of such goods 
(Decree of the Cabinet of Ministries of 21 July 2010 No. 680).  
 If end use of these goods was improper or imported eligible volumes were exceeded then to 
the aircraft enterprises apply provisions of the Law of Ukraine "On the procedure of paying off 
taxpayers' debts to the Budget and State special funds". 
 Exemption from VAT 
 In accordance with item 11.34 of the Art. 11 of the Law "On value added tax" the aircraft 
enterprises eligible by the Art. 2 of the Law "On aircraft industry development" are exempted from 
VAT on such operations:  
 Importation in the customs territory of Ukra ine in the import (reimport) regime of goods 
(except excise goods) what used for aircraft i ndustry needs, if such goods are exempted from 
import duty in accordance with item "r" of firs t part of Art. 19 of the Law "On Common 
Customs Tariff";  
 Supply in the customs territory of Ukraine of results of research and development activities 
what conducted for aircraft industry needs.  
 If legal requirements were violated then to th e aircraft enterprises apply provisions of the Law 
of Ukraine "On the procedure of paying off taxpaye rs’ debts to the Budget and State special funds". 
 Exemption from land tax 
 The aircraft enterprises eligible by the Art. 2 of the Law "On aircraft industry development" 
are exempted from land tax then their land is dir ectly used for production of final products in 
particular:  aircraft, its corps, engines, including warehouses, hangars, runways, and places for aircraft 
refuelling points and flight control. 
 Bonus or accelerated depreciation 
 In accordance with the Law "On corporate inco me tax" bonus depreciation is the depreciation 
of main assets that provides for inclusion of part of  the costs for its acquisition (construction) to gross 
costs of the taxpayer and further depreciation of residual value of main assets under general norms. 
 Accelerated depreciation is the depreciation of main assets what carried out by double general 
norms.    G/SCM/N/220/UKR 
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   Simultaneous application of bonus and accelerated depreciation to the same main assets is not 
allowed. 
 Eligible aircraft enterprises have the right to  apply bonus depreciation to the new (which were 
not in use) main assets of 50% to book value of main assets of group 3 and 100% for group 4 by the 
results of the first reporting period when objects of su ch main assets were put into operation if these 
objects used exclusively for: 
 (a) development and production of aircraft techniques and engines; 
 (b) conversion, repair, modification, technical  service of aircraft techniques and engines; 
 (c) research and development for aircraft industry. 
 Corporate income tax features  
 The aircraft enterprises eligible for Art. 2 of the Law of Ukraine "On aircraft industry 
development" include to the gross income the cost of goods (services) supplied to the customer in  the 
fiscal period when these goods (services) were actu ally supplied, without down payment received 
from the customer-taxpayer; and they include to the gross cost – the cost of goods (services) actually 
received by the customer-taxpayer without down pa yment delivered to the seller-taxpayer.  This 
regime applies to operations on de velopment, production, conversion,  repair, modification, technical 
service of aircrafts and engines, and also to research and development for aircraft industry. 
 Making payments in foreign currency 
 In accordance with the Law of Ukraine of 23 September 1994 No. 185/94-VR "On making 
payments in foreign currency" the final payments  for export and import transactions of eligible 
aircraft enterprises are carried out not later than 500 calendar days after the transfer of down payments 
for development, production, conversion, repair, modification, technical service of aircrafts and 
engines. Exceeding of this period needs approva l of the central authority on economic policy. 
 Beneficiaries 
 Legal entities – residents of Ukraine that carry  out activity in aircraft industry and have 
respective licences and certificates granting the rights  for development or production, or repair, or 
conversion, or modification or technical service of airc rafts and aircraft engines, and meet at least two 
of the following criteria: 
 (a) Develop aircrafts and aircraft engines, produce aircrafts and aircraft engines, repair 
aircrafts and aircraft engines; 
 (b) Fulfil state or military order on development of aircrafts and aircraft engines, 
production of aircrafts and aircraft engines, repair of aircrafts and aircraft engines; 
 (c) Ensure implementation of internationa l obligations of Ukraine by international 
contracts on development of aircrafts and ai rcraft engines, supply of aircrafts and 
aircraft engines, production of aircrafts and aircraft engines, repair of aircrafts and 
aircraft engines. 
 List of eligible aircraft entities approved by the Decree of the Cabinet of Ministers of 
9 June 2010 No. 405. G/SCM/N/220/UKR 
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   Amount 
 2010, thousand UAH 
Compensation of interest rates on loans 0 
Exemption from import duty 23 500 
Exemption from VAT on import of goods  67 200 
Exemption from VAT on supply of research results 0 
Exemption on land tax 26 300 
Corporate income tax features 71 400 
 
Duration 
 
 Till 1 January 2016. 
  Statistics for estimation of trade effects 
 
Production by beneficiaries 2010, thousand UAH 
 n/a 
 3. Coal Mining 
 Policy objective and/or purpose 
 
 To assist in restructuring and modernization in the coal mining sector, raising industrial 
safety, labour safety improvement.   
 
 Background and authority 
 
In 2009 according to the Decree of the Cabinet of Ministers of Ukraine of 28 January 2009 
No. 69 there has been provided support to the co al mining enterprises (including brown coal mining 
enterprises) for partial covering the expenses on production cost. 
According to the Decree of the Cabinet of Ministers of Ukraine of 16 March 2009 No. 196 
there has been provided support to financing of inv estment projects of construction and technical re-
equipment of the coal mining enterprises. 
According to the Decree of the Cabinet of Ministers of Ukraine of 18 August 2005 No. 749 
(with changes and amendments) there has been pr ovided support to restructuring of the industry 
including repaying past-due (previous years) de bts on electricity used by enterprises which are 
preparing to liquidation. 
The scope of the program is defined according to the law of Ukraine on the State Budget of 
Ukraine for 2009. 
According to the Law of Ukraine "On the State Budget of Ukraine for 2009" of 
26 December 2008 No. 835-VІ there has been foreseen:     
 
 support to the coal mining enterprises (including  brown coal mining enterprises) for partial 
refund the expenses on production co st – 750 000,0 thousand UAH;  
 restructuring of coal industry including repaying past-due (previous years) debts on electricity 
(in sum 420 473,6 thousand UAH) used by enterprises which are preparing to liquidation – 
1 086 192,5 thousand UAH;  G/SCM/N/220/UKR 
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   financing of investment projects of tec hnical re-equipment – 275 383,3 thousand UAH; 
 support to capital construction of objects of the coal mining and peat producing enterprises – 
444 666,1 thousand UAH.  
With regard to some amendments made, the an nual planned amount of financing of mining 
industry in 2009 was:  
 
 support to the coal mining enterprises (including  brown coal mining enterprises) for partial 
refund of  the expenses on production cost – 4 663 924,9 thousand UAH;  
 restructuring of coal industry including repaying past-due (previous years) debts on electricity 
(in sum 420 473,6 thousand UAH) used by enterprises which are preparing to liquidation – 788 704,6 thousand UAH; 
 financing of investment projects of tec hnical re-equipment – 246 819,4 thousand UAH; 
 support to capital construction of objects of the coal mining and peat producing enterprises – 
444 665,5 thousand UAH. 
In 2010 in accordance with the Decrees of the Cabinet of Ministers of Ukraine of 
26 May 2010 No. 360, No. 375 of 19 May 2010, No. 913 of 11 October 2010 there was support to coal mining enterprises for partial refund of the e xpenses on production cost, and restructuring of coal 
industry including repaying past-due (previous years) debts on electricity. 
Besides the Decrees of the Cabinet of Minister s of Ukraine No. 663 of 28 July 2010 and 
No. 392 of 2 June 2010 approves the procedure for u se in 2010 of funds of the Stabilization Fund for 
financing of investment projects of construction of  the coal mining and peat producing enterprises. 
 The scope of programs is defined by th e Law "On state budget in 2010" No. 2154-VI of 
27 April 2010 as following: 
 support to the coal mining enterprises for partia l refund of the expenses on production cost –  
5 814 665 thousand UAH;  
 restructuring of coal industry (including brown coal mining enterprises) including repaying 
past-due (previous years) debts on electricity  used by enterprises which are preparing to 
liquidation; 
 financing of investment projects of technical re-equipment; 
 financing of investment projects on construc tion of objects of the coal mining and peat 
producing enterprises. 
 Form 
 
 Partial refund of production costs 
 
According to the Decree of the Cabinet of Ministers of Ukraine of 28 January 2009 No. 69 
the coal mining enterprises (including brawn coal producers) use the budget money for labour 
payments and for compulsory payments, such as el ectricity and securing warranty obligations as to 
reimbursement of budgetary credits, received for discharge the salary indebtedness.   
 G/SCM/N/220/UKR 
Page 16 
 
 
  The funds are distributed between the state en terprises, which allocate the money on partial 
covering the expenses on production cost of their ow n coal products for 1 Hryvna cost of such a 
product, at the condition that the volume of the pr oduced product (by the anticipated sale price) does 
not cover the cost of production.   
 
 State support to investment projects of cap ital construction and technical re-equipment 
 
 The state or public ownership enterprises are granted state funds as permanent loan (The 
Resolution of the Cabinet of Ministers of Ukra ine of 27 December 2001, No. 1764 "On approval of 
the Procedure for State Financing of Capital Cons truction", with changes and amendments). Objects 
for capital construction within investment project s are defined in accordance with State Program 
"Ukrainian coal" and Energy Strategy for the period to 2030. 
 
 Funds allocated for construction of objects (mine shafts, wells and mine horizons) which 
construction term is not exceeding one year and th at will improve the safety of working conditions, 
modernization of underground tr ansport, ventilation system. 
 Beneficiaries 
 
 The program concerns black coal, brown co al and peat producing enterprises of state 
ownership.    
 The program does not apply to enterprises subject to liquidation.   
 
 List of eligible enterprises is drawn up by the Ministry of Mining on the basis of economic indicators of enterprises activity and their plans for respective year.   
 
 Restructuring of coal industry (granting f unds for financing of liquidation of unprofitable 
mines) 
In accordance with the Decrees of the Cabinet of Ministers No. 749 of 18 August 2005 and 
No. 375 of 19 May 2010 black coal, brown coal an d peat producing enterprises use budget funds for 
preparation to liquidation, for the liquidation, for repaying past-due (previous years) debts on 
electricity by state enterprises in th e process of preparation to liquidation. 
 
 Beneficiaries 
 
 The program concerns black coal, brown co al and peat producing enterprises of state 
ownership what are preparing to liquidation and objects of enterprises, which are being liquidated. 
  
 Amount 
 
 2009, million UAH 2010, thousand UAH 
Partial refund of expenses from the production 
price and support of capital construction and 
technical re-equipment  5 355,4 See detailed below 
Restructuring of coal industry  788,7 1 092 430,4 
Partial refund of production costs See total above 5 807 270,0 
Financing of investment projects on technical 
re-equipment See total above 0 
Financing of investment projects on 
construction See total above 336 862,85  G/SCM/N/220/UKR 
 Page 17 
 
 
   Duration 
 
 Is not determined, on the annual basis.    
 Statistics for estimation of trade effects 
 
Amount produced by the enterprises which 
have got support 2009, million tons 2010, million tons 
Black coal 38,4 27,3 
Brown coal n/a n/a 
Peat n/a n/a 
 
4. Book-Publishing 
 Policy objective and/or purpose 
 
 Overcoming of the crisis in this sector a nd providing for developmen t of Ukrainian book-
publishing.    
 Background and authority 
  Support is provided by the Law of Ukraine "On State Support of Book-publishing in Ukraine" 
of 6 March 2003, No. 601-IV (with changes a nd amendments) and the Law of Ukraine of 
20 November 2003, No. 1300-IV and No. 521-VI of  18 September 2008 "On amendments to some 
laws of Ukraine concerning state support to book-publishing in Ukraine".   
  Form 
  Exemption from import duties 
 Exemption applies to imports of products used for book-publishing (for example, paints, 
photo tapes, cellulose, polygraphic materials, equipment)  that are not produced in Ukraine.  The list of 
inputs to be exempted presented in Art.19 (item "o") of the Law of Ukraine "On the Common Custom 
Tariff" No. 2097-XII of 5 February 1992 (with changes and amendments).   
 Exemption from VAT on imports 
  The same as for import duties and also for operation on supply of these goods to publishing-
houses and publishing organisati ons, polygraphic enterprises on the territory of Ukraine. 
 Exemption from VAT on domestic sales  Exemption applies to supply of services by business entities-resident s of Ukraine which 
simultaneously conduct books-publis hing activity and activity of production and distribution of books 
and production of paper and cardboard. The gross income of such business entity from mentioned 
activity should be not less 100% of its total gross income in the first reporting (fiscal) period from the 
time of its establishment or not less 50% of its total gross income in the previous reporting (fiscal) 
period. 
 
 Exemption from corporate income tax  
 Exempted income of publishing-houses and p ublishing organisations, polygraphic enterprises, 
received from publishing activity in Ukraine, exempt publishing materials of erotic nature.   G/SCM/N/220/UKR 
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   Beneficiaries 
 Publishing-houses and publishi ng organisations, polygraphic en terprises and distributors of 
books-publishing production which conducting their ac tivity in accordance with the Law of Ukraine 
"On publishing" No. 318/97-VR of 5 June 199 7 (with changes and amendments).   
 
 Amount 
 
 2009, million UAH. 2010, thousand UAH. 
Exemption from corporate income tax 1,048 39 704,773 
Exemption from import duties 4,8 n/a 
Exemption from VAT on imports 34,1 36 119,488 
Exemption from VAT on domestic sales 21,249 231,421 
 
 Duration 
 
 From 1 January 2004 till 1 January 2015.   
  
 Statistic for estimation of trade effects 
 
Production 2009 2010 
Number of titles of books and brochures, 
published items 22 491 373 
Annual edition, thousands item 48 514,4 968,7 
 
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