In a move to boost the development of processing enterprises, the Ukrainian government has enhanced the grant application process within the “eRobota” program. A significant update allows funds from the Mandatory State Social Insurance Fund for Unemployment to be utilized as a source of financing for this initiative, as announced by the Ministry of Economy.
The decision designates the State Employment Service as the main administrator of these funds, and it was formally approved during a Cabinet meeting on November 10, 2023.
“In the face of limited exports of Ukrainian products, the government is placing maximum emphasis on the development of the processing industry. The development of Ukrainian production is an unequivocal priority within the framework of implementing the national strategy to transition from a raw material model of the economy to high-tech industries, thus increasing the value-added of finished products. Utilizing funds from the Mandatory State Social Insurance Fund for Unemployment to finance the ‘eRobota’ grant program will contribute to the development of the processing sector, the creation of new jobs, and overall economic growth,” explained Deputy Minister of Economy Nadiya Bigun.
Thanks to this decision, entrepreneurs can expect to receive grants for additional processing projects totaling up to UAH 1 billion by the end of the current year. Looking ahead to the next year, the government plans to allocate over UAH 5 billion in grants for the processing industry from all funding sources, benefiting around 1,000 enterprises.
The government’s ambitious plan, supported by grant assistance, aims to facilitate the creation of up to 20,000 new jobs in the processing and related industrial sectors. This initiative is expected to stimulate demand for the production of equipment for processing enterprises in the domestic market, creating a multiplier effect for budget replenishment at all levels.
“The development of processing enterprises stimulates demand for the production of equipment for processing enterprises in the domestic market and has a multiplier effect on budget replenishment at all levels. With an increase in the number of new jobs, the burden on the state budget in terms of unemployment benefits is expected to decrease. This, in turn, will help repatriate those forced to relocate abroad,” concluded Nadiya Bigun.
Since the program’s inception, over 400 grants totaling UAH 2.2 billion have already been issued.
Source: AgroPortal