Industrial parks under new rules

On 25 September 2026, the President of Ukraine signed the Law of Ukraine “On Amendments to Certain Legislative Acts of Ukraine on Improving the Functioning of Industrial Parks” No. 4961-IX (“Law”), which will come into force three months after its publication.

The Law seeks to remove the barriers that emerged in the practical application of industrial park legislation and to make industrial parks more attractive to investors.

More than a year and a half passed between the adoption in the first reading and the signing, and the text changed considerably in the meantime. We wrote about the first-reading version here. The key changes in the final version are as follows:

• industrial park lands become a separate category of land and a separate type of designated purpose of land plots. Land plots of industrial lands on which industrial parks already operate will fall within this category upon application of the owner or land user, with no land management documentation required
• the cap on the maximum area of an industrial park of 1,000 hectares has been abolished (the minimum area remains 10 hectares)
• the designated purpose of land plots classified as industrial park lands may not be changed during the term for which the industrial park is created, and the lease term for state- or municipally owned land may not be shorter than that term
• a new entity has been introduced – the “other industrial park entity”. It may carry out any activity not prohibited by law but is not eligible for state incentives
• industrial park participants may generate and store energy, including from alternative sources, solely for the needs of their own business activities
• the electricity networks of an industrial park may qualify as a small distribution system without meeting the criterion of connected capacity of at least 1,000 kW obtained through a new grid connection
• an industrial park may be created, included in the Register of Industrial Parks (“Register”) and operated even in the absence of approved local urban planning documentation, provided that a reasoned opinion of the competent urban planning and architecture authority has been issued
• industrial parks are no longer subject to a mandatory environmental impact assessment as a separate type of activity
• the decision to include an industrial park in the Register is now taken by the Cabinet of Ministers of Ukraine rather than by the Ministry of Economy, Environment and Agriculture
• the grounds for removing an industrial park from the Register have been expanded: no management company for two years, fewer than two participants for three years, failure to submit reports for two consecutive reporting periods, and a reduction of the area below 10 hectares
• if an industrial park is removed from the Register and is not re-included within one year, the lessor of a state- or municipally owned land plot leased without a land auction may unilaterally terminate the lease agreement
• state incentives have been strengthened: annual State Budget expenditures on the development of industrial parks will amount to at least UAH 2 billion, the costs of connection to utility and transport networks will be compensated, assets received as international technical and grant assistance may be transferred to industrial park entities, and initiators and management companies gain access to the “5-7-9” lending programme

The changes broaden the potential of industrial parks as a tool for attracting investment and for reconstruction, but they also raise the cost of inaction: an industrial park with no management company, no participants or no reporting risks losing not only state incentives but also its land lease.

Additional notes

For further information on the topic please contact managing partner Mykola Stetsenko, senior partner Kostiantyn Likarchuk or managing associate Inna Erbelidze, or by telephone +380 44 591-3355 or via e-mail.