BIP and Ukraine’s Export Credit Agency Sign a Memorandum to Support NOVO Industrial Park Residents
On 8 June, Ukraine’s Export Credit Agency (ECA) and the Bureau of Investment Programs signed a cooperation memorandum. The partners aim to encourage businesses based at the NOVO industrial parks to insure export contracts with the ECA, targeting UAH 10 billion in insured contracts over the following five years.
At the signing ceremony, BIP Managing Partner Oleksandr Bondarenko said Ukrainian exporters had lost approximately $22 billion since the start of the full-scale invasion and that exports had fallen by 35% in 2022.
“Even if Ukrainian exports grow by 10–12% to $50 billion in 2023, our economy will still be below its 2020 level. That is a major challenge. Exporters need three things to recover and grow: the Export Credit Agency’s instruments, access to capital and the advantages offered by industrial parks. Our cooperation with the ECA is designed to bring these elements together.
“For our part, we can offer businesses a base for export-oriented manufacturing at the NOVO industrial parks in Volyn, just 20 minutes from the Polish border, alongside tax incentives that include a potential ten-year corporate income tax exemption,” Bondarenko said.
Ruslan Hashev, Acting Chair of the ECA’s Management Board, highlighted the value of working with industrial parks, which bring multiple manufacturers together within a shared business ecosystem.
“It is easier to work with an organisation that brings together several companies interested in our support instruments, as we expect NOVO to do. We are ready to insure their financial risks and develop new tools that will help us reach the UAH 10 billion export target as quickly as possible,” he said.
The Bureau of Investment Programs group has operated in Kyiv since 2017 and also has offices in Warsaw and Lutsk. Its activities include attracting investment into industrial and technology companies, establishing and managing industrial and technology parks, and developing industrial clusters. It manages two NOVO industrial parks in Volyn, in Novovolynsk and Volodymyr.