Ukraine Boosts Film Industry with Cash Rebates and Culture Fund

Ukraine is taking significant steps to revitalize its film industry, announcing plans for a culture fund and cash rebates aimed at attracting international productions. Speaking at the Tallinn Black Nights Film Festival on December 1, 2023, Andrii Osipov, the head of the Ukrainian State Film Agency, reported that the country has successfully completed 50 homegrown film productions since the onset of the war in February 2022.

Osipov emphasized the resilience of the Ukrainian film sector, noting that despite ongoing conflict, Ukrainian films are premiering every one to two weeks. “This year, 50 Ukrainian films will be finalized. It is really a huge number for the Ukrainian film industry,” he shared, highlighting the importance of sustaining production activity during these challenging times.

Plans for Financial Support and Incentives

To further energize the sector, Osipov revealed plans for a 50 million euros ($57.5 million) fund intended for films, theater productions, and other cultural initiatives. This initiative, proposed by President Volodymyr Zelensky, will allocate approximately 70-90 percent of the funding to Ukrainian producers, with the remainder available for international co-producers. More details are expected to be released in the coming months.

Additionally, Ukraine aims to implement its first cash rebates program for international film productions, offering a 25 percent rebate on eligible expenses, with an extra 5 percent available for projects that meet certain cultural criteria. “We want the Ukrainian film industry to develop, and we want to develop together with the whole world,” Osipov stated.

Despite these positive developments, the ongoing war presents significant challenges for filmmakers. Osipov noted that filming must halt during air raids and that recent blackouts have further complicated production schedules. “Without electricity, the production process is paused, which particularly affects the post-production period,” he explained. Additionally, the mobilization of professionals for military service has resulted in a shortage of skilled workers in the film industry.

Osipov’s sentiments were echoed by Oksana Chornobryvtseva, deputy head of the Association of Regional Film Commissions of Ukraine. She highlighted the operation of ten regional film commissions across the country, stating, “Ukraine is open to supporting all your production processes as efficiently as possible, even under wartime conditions.”

Challenges for International Productions

Chornobryvtseva cautioned that foreign productions should prepare for potential delays and logistical challenges due to the ongoing conflict. “Border crossings may take extra time due to passport control and security checks,” she noted, adding that damaged infrastructure could disrupt transport schedules. A slide presented during the event indicated that “geolocation services may be unavailable during alerts,” suggesting that production teams should plan routes and coordination offline.

As Ukraine looks to the future, its commitment to supporting both domestic and international filmmakers remains strong. The initiatives outlined at the Tallinn event signal a determination to cultivate a vibrant film industry, even amidst the backdrop of conflict. With these new financial mechanisms in place, Ukraine aims to not only sustain its film sector but also to position itself as a competitive destination for global film productions.