>
Great companies continue to voice concerns regarding their inability to access the state’s preferential loan program “5-7-9.” In response, the Ministry of Economy and Environmental Protection is planning to introduce an option for them to secure loans at a 10% annual interest rate.
“A program is currently being finalized that will enable large businesses to receive loans at 10%,” stated Deputy Minister Vitaliy Kindrativ during an online meeting with businesses, organized by the parliamentary committee on finance, tax, and customs policy earlier this week.
According to Andriy Telyupa, an advisor to the Minister of Economy’s support staff, the proposed adjustments have been developed in collaboration with representatives from the fuel and retail sectors.
“We intend to utilize Resolution No. 594 to extend this benefit to all types of businesses, irrespective of their size, so that large enterprises also have the opportunity to obtain more affordable loans for recovery. Consequently, we have prepared these amendments and are currently in the process of submitting them,” Telyupa remarked.
Cabinet of Ministers Resolution No. 594, dated April 29, established an experimental project to provide state financial assistance to businesses for the development of distributed generation. This resolution outlines compensation for interest rates exceeding 10% for loans aimed at constructing new generating capacities, energy storage systems, and related infrastructure.
Yaroslav Starovoytenko, President of the Oil and Gas Association of Ukraine, explained that the industry is seeking access to such loans to construct underground storage tanks for petroleum products as part of the renovation of existing oil depots.
“Implementing specific safeguards to ensure the completion of the facility within a year and limiting the loan term to no more than five years,” added the association’s head.
He estimates that a similar reconstruction of an oil depot, including the installation of underground reservoirs with a capacity of 4,000 cubic meters, would require approximately $2 million, or up to 100 million UAH.
“We propose issuing loans of up to 100 million UAH per facility at an annual rate of 10% for a duration of 5 years (…) Existing oil depots possess the necessary infrastructure, logistics, land, and other prerequisites (…) Currently, some companies are undertaking pilot projects at their own expense. However, with state support, this initiative can be rapidly scaled and deployed nationwide,” emphasized Starovoytenko.