MIL-OSI Europe: Prime Minister voiced three factors in the development of the aviation and tourism industries in Ukraine

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Source: Government of Ukraine

Prime Minister Denys Shmyhal in a statement during the forum “Large Construction: Aviation. Tourism” voiced three factors of change that create conditions for the development of aviation and tourism industries in Ukraine.

According to him, the first factor is the agreement on the Common Aviation Area with the European Union, which has become the main event in the field of air transportation this year.

“This is a visa-free regime allowing us to liberalize our relations with Europe and European air carriers. The agreement paves the way for affordable air travel to become commonplace for Ukrainians. It increases comfort, quality of life, quality of travel and tourism. Greater competition in the market – more routes, lower prices, better quality,” said Denys Shmyhal.

The Head of Government added that the agreement also opens the possibility for the recognition of certificates of Ukrainian-made aircraft, in particular the Antonov company.

“It gives a great prospect for airlines to invest in the relevant infrastructure, it supports our excellent school of aircraft construction, which has been developing for many decades. We will fully support Ukrainian aircraft construction,” the Prime Minister stressed.

The second factor, according to Denys Shmyhal, is Government’s investment in the development of aviation infrastructure. According to him, the total investment of the state in relevant projects this year alone amounted to UAH 3.4 billion.

“According to experts and analysts, this makes up for almost 1% of GDP in Ukraine. This year, UAH 1.4 billion was spent on the construction of an airport in the Dnipro, UAH 700 million for the airport in Odesa, more than UAH 600 million – to the airport of Vinnytsia, UAH 500 million UAH – to Kherson airport. Yesterday at a Government meeting, we also approved the procedure for using UAH 200 million to replenish the authorized capital of the Boryspil Airport. This funding will be used to build a new terminal,” said the Prime Minister.

The third factor of change, according to the Prime Minister, is the development of domestic aircraft industry. Denys Shmyhal noted that Ukraine has an approved strategic document – the State Targeted Scientific and Technical Program for the Development of the Aviation Industry for 20221-2030.

“The program contains an important roadmap with elements of the world’s best experience in the development of aircraft construction. It is expected that the total investment in the development of Ukrainian aircraft construction over these years will amount to over UAH 34 billion,” said Denys Shmyhal.

The Prime Minister stressed that 45 high-tech aircraft companies had received tax benefits by January 1, 2025, including exemption from corporate income tax, value added tax, land tax, and entry duty on high-tech equipment.

Due to the implementation of the aforesaid Strategy, according to the Head of Government, the volume of aircraft sales in the period up to 2030 is estimated by experts at over UAH 300 billion.

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