Ivano-Frankivsk: Promprylad — A New Economic Center for Development and Innovation

Ivano-Frankivsk is becoming an important center for innovation and sustainable development, particularly thanks to the 'Promprylad' project. This initiative is not only changing the face of the city but also creating new economic opportunities, attracting talent, and altering the social climate. We spoke with the leader of the initiative, Yurii Filyuk, about how the revitalization of industrial zones can impact the city's future.

Yurii Filyuk, the CEO of 'Promprylad', explains that the idea for the project did not arise in a vacuum. It is a logical continuation of the 'Warm City' and Urban Space 100 initiatives, which aimed to activate the local community and promote sustainable development in Ivano-Frankivsk across various sectors — from art to entrepreneurship. 'We were looking for the next big step to take and realized that there is significant potential in rethinking old industrial zones,' he explains.

At that time, abandoned and semi-abandoned sites were more a part of the city's problems. Filyuk pointed out a neglected factory in the city center, which people largely avoided — 'Promprylad'. 'We realized that we could breathe life into it, transforming it into a center of reboot. This idea and scale drove us,' he adds.

Negotiations with the then-owners began simultaneously with studying the experience of similar projects in Ukraine and around the world, focusing on the needs of the community. 'My filter is 30 years of entrepreneurial experience. I started at 13. My whole life has been about not just making money, but how to create value and improve the situation around,' notes Yurii.

Filyuk recounts his first entrepreneurial experience, selling sponges to drivers at the age of 13. 'After that, I created databases for businesses, organized concerts, and later, in Kyiv, developed a company in the financial sector. However, 2008 and the financial crisis changed a lot. I found myself back in Ivano-Frankivsk, looking for ways to make changes around,' he says.

When asked about the changes in Ivano-Frankivsk due to 'Promprylad', Filyuk emphasizes that the project's goal is to develop a unique ecosystem at the intersection of education, art, economy, and urbanism. 'We are essentially forming a cultural and business center for the city. And yes, we are already seeing changes. More and more people are linking their future with Ivano-Frankivsk,' he stresses.

Interestingly, more than half of the residents of 'Promprylad' are those who have moved or returned to the city in search of development opportunities. 'This indicates that Ivano-Frankivsk is becoming a point of attraction and opportunity,' says Yurii. He also highlights that young people in small and medium-sized cities face the problem of a lack of space for development, which can lead to a desire to leave the city.

'Our task is to create conditions so that people can realize themselves here and work on a global level,' says Filyuk. To this end, the 'Promprylad' team is creating infrastructural opportunities for development: coworking spaces, incubation and acceleration programs, a veterans' center, a children's development center, and sports infrastructure. 'We also care about fostering a culture of openness, interaction, and ambition to compete in global markets,' he adds.

When asked about the possibility of joining the 'Promprylad' project, Yurii notes that such an opportunity still exists. 'We have yet to attract the last 4 million dollars from the planned 24 million. These are investments from both private and corporate partners who become co-owners of the project,' he explains. According to him, 70% of the project belongs to investors, while 30% belongs to the 'Promprylad' charitable foundation, which is responsible for the social component. The minimum investment amount is 50,000 UAH, allowing both small investors and large players to participate.

Filyuk also discusses the project's capitalization, which currently stands at 141.5%. 'As we attract funds, reconstruct, and put new buildings into operation, the asset's value proportionally increases,' he notes. Dividends are accrued after construction is completed and planned financial indicators are met. 'It is important to understand that the project is not about quick profitability; it is a long-term investment with good prospects,' emphasizes Yurii.

In conclusion, Yurii talks about the activities of the 'Promprylad' charitable foundation, which is responsible for social programs. 'This is about developing a new economy, entrepreneurship, science, culture, and education. We have various educational and incubation programs in partnerships with institutions such as the University of California, Berkeley, the Copenhagen Institute of Neurocreativity (CINC), UCU, and KSE,' he notes. Each year, these programs pass thousands of participants, indicating the active development of Ivano-Frankivsk and its prospects for the future.