The state should create conditions for development of the electric transport market in Ukraine and stimulate national production, Ukrainian Infrastructure Minister Volodymyr Omelyan has said.

"I am sure that with the current staff and technological resources, Ukraine must produce electric cars. Our ambitious goal is the arrival of at least three strategic investors from top ten manufacturers to the country," the ministry's press service reported, citing Omelyan.

The minister said that Ukraine's goal is to have the share of electric car sales of total car sales of 15% in 2020 and own production of electric cars.

"I have a strong belief that this market segment exists, and this is the future. We have large chances to occupy own market share, as the starting conditions are equal for everyone. We have support of the Energy and Coal Industry and Ecology and Natural Resources Ministry. I think that the state would also support the development of electric transport in Ukraine," he said.

According to the minister's presentation posted by the press service, as of November 2016 a total of 1,630 electric cars were in Ukraine. Their annual growth is 13.2%, and their sales share is 0.7%.

Among obstacles for developing the electric car market is psychological (it is unclear where to charge, how to organize charging and fears to stay without power in a field), financial (expensive cars and repair), institutional (weak conditions for market development) and technological (small batch production and sophisticated technologies).

The minister proposes to exempt imports of electric cars from paying VAT until January 1, 2021. It would cut the price of electric cars by 16.8%, as well as to exempt from paying the registration fee to the Pension Fund for primary registrations until January 1, 2021 (minus 4.8% of the cost) and paying excise duty until January 1, 2021 (the cost of the car will fall by EUR 109).

The minister proposes tax benefits for profit tax and government grants to buy electric cars.

For production of Ukrainian electric cars it is proposed to exempt sale of electric cars from paying VAT until January 1, 2021, the registration fee to the Pension Fund, setting a zero duty on imports of spare parts to electric cars, setting a delay in paying VAT on imports of spare parts and the introduction of a beneficial rate for land tax for electric car manufacturers until January 1, 2028.