Large state-owned enterprises registered in Kyiv should be re-registered in frontline communities while martial law is in force. This could provide a legitimate means of supporting the budgets of such territories through personal income tax revenue.

This information was reported by Vitalii Bezgin, Minister for Communities, Territories and Internally Displaced Persons of Ukraine, in an interview with the Interfax-Ukraine news agency.

The Minister emphasised that he does not consider it necessary for the state to intervene in competition between communities for relocated businesses or in private companies’ decisions on where to pay their taxes. Communities can independently offer businesses favourable operating conditions, including local tax incentives, in order to secure jobs and stable revenue for the budget in the future.

‘If a community is flexible and responsive to businesses’ needs, of course they will operate there.’

At the same time, Vitalii Bezgin believes that large state-owned enterprises registered in the capital need a separate approach.

‘The only area, in my view, where we should intervene is with large state-owned enterprises registered, for example, in the capital of Ukraine. I believe that, for the duration of martial law, they should be re-registered in frontline communities, in order to support their budgets in a completely legal way.’

Source: interview with Vitalii Bezgin for Interfax-Ukraine.