Chervonohrad Industrial Park — Build your next production site at the EU border

Scripts

For many manufacturers, expansion within the EU means higher site costs and longer project timelines. Chervonohrad Industrial Park offers a nearshoring alternative at the EU border.

25-year site use cost

€42–48/m² over 25 years*

€3.45/m² over 25 years (equivalent to €115/ha/month)

Time to operations

4–8 years**

12–18 months*

Corporate income tax (nominal)

16–24% in key CEE manufacturing jurisdictions***

0% for 10 years**

Import tax burden on new equipment

–

0% import VAT and customs duty on eligible new equipment for own use

EU-border proximity

–

35 km from the Polish border

* Official comparator: ADLO tender terms for greenfield parcels in Oradea Industrial Park (Romania).

** Indicative full-cycle benchmark for new manufacturing project delivery in Europe.

*** Indicative benchmark: Romania 16%, Poland 19%, Czechia 21%, Slovakia 21–24%; EU average: 21.81%.

* From industrial park resident status to start of operations, including design, regulatory approvals, construction, commissioning, and utility connections.

** Subject to reinvestment of the tax-exempt amount into the development of operations within the industrial park.

Request Site Terms

War risk: location and insurability

War risk is part of the decision. Here is how it is addressed in practice.

For an industrial investor, the key question is whether location risk can be contained and whether practical risk-mitigation tools already exist. In western Ukraine, both conditions are already in place.

Western Ukraine should be assessed separately from frontline geographies

Lviv region is classified within Ukraine's Green Zone for investment planning according to the Investment Map of Ukraine (supported by EBA and UkraineInvest). This classification is based on the official War Risks in Ukraine Data Platform, developed with the support of global risk advisor Marsh McLennan. For investors, this means western Ukraine can be assessed separately from frontline geographies and is highly attractive for business expansion under standard risk management protocols.

War-risk insurance mechanisms for industrial investment in Ukraine already exist

Ukraine already has working war-risk insurance pathways involving MIGA, DFC, global reinsurers, and the Ukrainian ECA. These mechanisms help eligible investment projects reduce exposure to war-related risks and make project structuring more feasible.

Speak to Our Experts

Who this park is for

Is this the right location for your project?

Nearshoring production for EU-bound sales

A strong fit for European manufacturers looking to place a new production line close to EU customers while operating from a lower-cost location near the EU border. Best suited for projects where proximity to Poland and Central Europe matters as much as cost efficiency.

A second site or satellite production base

A practical option for companies expanding capacity beyond higher-cost EU locations or establishing a second manufacturing site alongside existing EU operations. Especially relevant for Build-to-Suit projects that require layout flexibility rather than ready-made premises.

Manufacturing linked to Ukrainian and regional demand

A relevant location for producers of construction materials, industrial components, packaging, food processing, metal products, furniture, or other sectors serving both Ukraine and neighbouring EU markets. The park is designed for active manufacturing operations rather than passive land holding.

Find Your Space

Location & logistics

35 km to the EU border and direct rail access — what this means for logistics

Map showing Chervonohrad Industrial Park location relative to EU border crossings and logistics routes

Uhryniv–Dołhobyczów border crossing

~35 km (~40 min)

Lviv rail hub

~70 km (~1 hour)

Warsaw

~400 km (~5 hours)

Kraków

~370 km (~4 hours)

The park plots are designed with direct access to Road P15 (Kovel–Zhovkva), providing a practical outbound route for truck logistics. A rail branch runs along the park boundary, creating an additional advantage for manufacturers that rely on freight rail.

Financial effect of resident status

How much capital can remain in your business as a resident company in the park

Manufacturing business with annual profit of €500,000

*Indicative example for illustration only

Standard Ukrainian regime

As an industrial park resident

Corporate income tax over 10 years

€900,000

€0

Import VAT and customs duty on production equipment

20% VAT + import duty

0%

Access to a 1 ha industrial plot

100% of land acquisition cost

15–23% of land value over a 30-year lease term

Up to €900,000

can remain in the business over 10 years*

*Based on the corporate tax line only · subject to reinvestment of the tax-exempt amount within the park

Get a Financial Estimate

The 30-year lease equivalent is shown as the net present value (NPV) of annual lease payments using a 5–9% discount rate. Tax incentives are presented in accordance with Ukrainian industrial park legislation.

Trust & legal foundation

Who stands behind the project – and why that matters

Request Project Brief Project documents

Developed within the Just Transition context

The project is being developed within the broader just transition framework for the Chervonohrad coal region, supported in Ukraine by GIZ. For investors, this means the park is positioned within a recognised regional transformation agenda rather than as an isolated greenfield project.

Official legal status under Ukrainian industrial park legislation

The park is officially registered under the Law of Ukraine "On Industrial Parks". It is established for at least 30 years, and resident companies operate through a formal long-term land-use model within a legally defined industrial park framework.

Part of the region's economic transformation

The project is aligned with the economic transition of a former coal region: attracting new manufacturing, creating jobs, and building a new industrial base for long-term regional growth.

ESG & Regional Impact

Potential to create at least 990 direct jobs in the community.

Potential to support around 1,000 additional jobs in related sectors.

A new local tax base to support long-term municipal development.

Demand for reskilling the workforce of a former coal region for modern manufacturing.

A more diversified regional economy with lower dependence on the coal sector.

A foundation for ESG-compliant operations with closed-loop water systems and renewable energy readiness.

Resident roadmap

What the path to production launch looks like

1.

Initial enquiry

Short intake form, initial consultation, and a preliminary assessment of the project parameters

1–3 days

2.

Plot selection

Site review, alignment on plot size, configuration, and baseline placement terms

1–2 weeks

3.

Memorandum of intent

Signing a memorandum of intent, alignment on the core placement parameters, and launch of the contractual structuring process

1–2 weeks

4.

Plot technical documentation

Preparation of the land-management and technical documentation required for the land lease agreement

6–8 weeks

5.

Contractual entry

Legal formalisation of plot rights, signing of the land lease agreement, the economic activity agreement, and the operating agreement

2–3 weeks

6.

Delivery of the production / logistics facility

Design, construction or fit-out of the facility, together with connection to the park's engineering networks

12–18 months

Commissioning and start of operations

FAQ

What legal form is required to obtain resident status? Is registration in Ukraine mandatory?

Yes. To obtain industrial park resident status, a company must be registered as a legal entity in Ukraine. For foreign investors, the standard format is a Ukrainian LLC with 100% foreign capital. Registration typically takes 2–4 weeks, and the park team can provide legal support and partner recommendations.

Can a foreign investor own 100% of the Ukrainian operating company?

Yes. Ukrainian corporate law permits 100% foreign ownership of a Ukrainian LLC. There are no restrictions on foreign ownership in industrial parks. Dividend repatriation is permitted subject to applicable currency control rules.

What industries are permitted on the park territory?

Manufacturing industries: food and agro-processing, wood processing, furniture, paper products, non-metallic mineral products, fabricated metal products, machinery and equipment, automotive and other transport. Scientific and technical activities are also permitted. Fit with park requirements is confirmed at the application review stage.

What tax and customs incentives are available to a resident company?

0% corporate income tax for up to 10 years; exemption from import customs duty and import VAT on new equipment and components; and potential land payment and property tax relief subject to local council resolution.

What does the profit reinvestment condition mean for the 0% corporate tax benefit?

Profit must be directed toward development of operations within the park — toward equipment, construction, modernisation or capacity expansion. Dividends are not accrued or paid during the period in which the tax benefit is applied.

What equipment qualifies for customs duty and import VAT relief?

New equipment and components with specified UKTZED codes imported by a park participant for its own use within the park. The equipment must be unused, and no more than 3 years may have elapsed from its manufacture date to the import date.

Is land acquisition required, or is the site provided on a lease basis?

The standard model is a long-term lease of up to 30 years with extension options. At a lease rate of 1.5% annually of the normative monetary value, the net present value of a 30-year lease is approximately 15–23% of the plot value.

What documents can be provided before a site visit or formal negotiations?

We can provide: the park's legal registration documents, the master plan and plot cadastral information, available utility connection specifications (TU), and indicative placement terms. Request the document package through the contact form.

Ready to discuss the placement of your manufacturing project in Ukraine?

Submit your enquiry, and within one business day we will send you indicative placement terms and the technical parameters of available plots.

Or contact us directly:

info@volia-agrifood.com 38 (095) 232 34 98