Ukraine

[UA] National cinematography will receive state support

IRIS 2017-6:1/30

Kateryna Horska

Institute of Journalism, Taras Shevchenko National University of Kyiv

On 20 April 2017, President Petro Poroshenko of Ukraine signed the "State Support of Cinematography in Ukraine Statute", which is aimed at the state provision and stimulation of the national film production industry. The document presents the national policy of development and enables promotion of Ukrainian cinematography.

Previously, in 2015, Ukrainian Parliament imposed a possibility to refuse the issue of new permits for the exhibition and other forms of distribution, including via TV, of films in a number of cases related to the Soviet and Russian works (see IRIS 2015-5/26).

The Statute introduces significant changes into the regulation of relations between the state and filmmakers; they involve detailing the measures to support the production and exhibition of Ukrainian films, as well as their distribution on television and online. These include preferential terms for advertising national films, alongside an obligation for the TV broadcasters to screen “national films” for at least 15 % of airtime used to show films (to be raised to 30 % from 2022). There will be efforts to provide state support in the building of cinemas in small towns and the purchasing of equipment for mobile cinemas in rural areas.

The term "national film" includes those works that were made (produced) partially or completely in Ukraine, in Ukrainian or in Crimean Tatar language, and passed a "cultural test" to estimate their cultural and production relevance as defined in addendum No. 1 to the Statute.

New regulations on financing films increase the share of the state subsidies that should provide an impetus for the modernization of the industry. Feature and animation films are eligible for the subsidies of up to 80 % whilst TV shows are eligible for up to 50 %. Production of documentary, educational, independent, animation, and children's films can now be completely funded by the state.

State subventions are granted to all film studious, regardless of their public or private nature, if they are involved in the production of a “national film”.

Provisions of the statute also aim at attracting foreign investments by providing a 16.6 % refund for financing film production and 4.5-10 % refund for the payment of royalties.

It is envisaged that the sources of funding will come from the state budget revenues and the Ukrainian Cultural Foundation (UCF) established by the statute to select, support, and monitor the implementation of national cultural and artistic projects.

The statute enters into force from the day of its official publishing.