Relocation of Enterprises: Governmental Program

During the war, it is extremely important for the state to preserve the economy as much as possible. Therefore, giving companies the opportunity to move their facilities to the home front is critical. Below is the information on government initiatives on this issue.

The Cabinet of Ministers and the Ministry of Economy of Ukraine have announced a program for the temporary relocation of Ukrainian enterprises. The relocation is carried out to the territory of Western Ukraine.

1. How to Sign Up for the Program and What It Provides

To date, the normative document that would regulate the relocation of enterprises has not been published, so all information on this issue should be obtained on the website of the Ministry of Economy (https://www.me.gov.ua/).

One can apply for the relocation by following the link:  https://docs.google.com/forms/d/1ZAbh9DCUkTfQFhtZZM0EZhkebD_OYsVH2AtovtCPaN4/edit?usp=sharing 

The Ministry of Economy informs that conditions will be created for enterprises to ensure:

• Free transportation
• Selection of appropriate areas to locate production
• Relocation and resettlement of staff
• Selection of employees in the place of deployment after transportation

No criteria have been set for companies wishing to relocate. According to the Ministry of Economy, in order to be able to relocate under the program, the company must be located in the area of active hostilities. It is also reported that “the program is aimed at preserving the production and labor potential of Ukraine and is aimed at all enterprises wishing to relocate production to Western Ukraine.”

A report appeared on the website of the Ministry of Economy on March 21, stating that 40 Ukrainian enterprises had already been relocated from the area of active hostilities under the relocation program. Of these, 18 companies resumed their work in the new location. In the near future, the capacities of 299 companies will be transferred to a new place of work. It is noted that the Ministry of Economy has already processed 86% of applications submitted by affected enterprises (a total number of such applications is 898). In the future, the state will provide transportation of equipment and resettlement of employees of these companies.

1. How Transportation of Productions Is Carried Out

Ways to move businesses to the rear are as follows:

• by the railway provided by Ukrzaliznytsia;
• by road transport provided by JSC “Ukrposhta”, with the involvement of subcontractors.

Resolution of the Cabinet of Ministers of Ukraine “On the Peculiarities of Work of the Joint-Stock Company “Ukrposhta” during Martial Law” of March 17, 2022 No. 305 declares the following:

• the tasks of JSC “Ukrposhta” include free transportation of property of domestic enterprises, institutions and organizations in accordance with the list formed by the Ministry of Economy and transferred to the Ministry of Infrastructure;
• to perform tasks on transportation of property of domestic enterprises, institutions and organizations, JSC “Ukrposhta” has the right to involve  business entities engaged in road transport on a contractual basis, determine the tariff for such transportation and pay for relevant services from the account of JSC “Ukrposhta”. Vehicles and employees of economic entities engaged in road transport and contracted by JSC “Ukrposhta” to perform the tasks specified in this Resolution are subject to the rules established by this Resolution;
• vehicles are granted the right of emergency passage (except for vehicles of the Armed Forces, Ministry of Internal Affairs, Security Service, State Emergency Service, National Police and specialized ambulances) through checkpoints (artificial structures), in particular, if necessary – during curfew, on the basis of a permit (indicating the vehicle number, last name, first name, patronymic (if any) of a driver and employees accompanying the cargo with the driver (if any), their photos and passport numbers), issued by JSC “Ukrposhta”, to which a waybill and a consignment note are attached (if necessary);
• networks of petrol stations operating in Ukraine are obliged to refuel (supply fuel) vehicles belonging to or used by JSC “Ukrposhta” out of turn, except for vehicles of the Armed Forces, Ministry of Internal Affairs, Security Service, State Emergency Service, National Police and specialized sanitary transport, without restrictions on the number of vehicles and the amount of fuel per vehicle, on the basis of a permit (indicating the vehicle number, name, patronymic (if any) of the driver, their photo and passport number) issued by JSC “Ukrposhta”.

1. Information from Local Authorities

• Rivne Regional State Administration: Center for Economic Development and Business Relocation has opened, hotline: 0 800 332 723, Telegram bot: @rivnerelocation_bot.
• Lviv Regional State Administration: Lviv Regional Military Administration facilitates the relocation of enterprises from the regions located on the territory of active hostilities.
• Ternopil Regional State Administration: enterprises from the regions where hostilities are taking place are moving to the Ternopil region. Ternopil Military Regional State Administration continues active negotiations with enterprises and offers locations on the basis of which it is possible to place productions.
• Zakarpatska Regional State Administration: a special chat bot has been created in the Zakarpattia region to communicate with entrepreneurs who wish to move production to the region.