Denis Malyuska: Business is ready to accept corruption in Ukraine

17-10-2017

Source: radioosvoboda.org.

The Deputy Head of BRDO Denis Malyuska does not agree that corruption is a main reason for foreign investors not to enter the Ukrainian market. He says that sometimes it is quite the contrary. “If a large investor can get guaranteed state support for a small amount of money, it is an advantage for this investor,” Denis Malyuska says.

“If corruption brings a result, and a large investor can get guaranteed state support, even when it is illegal, for a small amount of money, a relatively small percentage, this is an advantage for this investor.”

A specific character of the Ukrainian corruption is that it does not provide any guarantees. In our case, even corruption can not provide any sound guarantees.

“In our country, even corruption can not provide sound guarantees to any investor. Therefore, corruption in our present situation is not the corruption that a foreign investor will be fine with,” he explains.

Thus, we should fight against corruption not because it discourages investors, but because it creates problems for the state and taxpayers.

As for the attraction of investors, Malyuska believes that the government should play a crucial role providing them with guarantees to enter the Ukrainian market. The lawyer refers to the draft law 6540, which is currently under consideration in the parliament and aimed at protecting minority investors in Ukraine. He adds that besides legislative changes, we need additional institutional mechanisms to protect investors.

Denis Malyuska: There should be a package of guarantees for large foreign investors who would establish a powerful production here.

“There should be a package of guarantees, possibly secured by foreign arbitration, for large foreign investors who would establish a powerful production here and produce products for export.”

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