Experts: Why is the investment attractiveness of Ukraine growing – Oleksiy HONCHARUK



In 2017, the Ukraine’s investment attractiveness index reached its peak in the last six years – 3.15 points on a five-point scale.

The European Business Association made this conclusion after a survey conducted among the directors of142 largest international and Ukrainian companies.

At the same time, the last year’s index was 2.88 points in June. The last time the index was more than 3 points only at the end of 2011.

The survey results showed that businessmen still have the negative mood, but it is less strong than before.

The NV Business interviewed key experts on aspects that allowed Ukraine to increase its investment attractiveness, what it means for businesses and how to improve the investment climate in the country.

Oleksiy Honcharuk, the Head of the Better Regulation Delivery Office (BRDO):

If we talk about climate in general, I have no euphoria or some sort of impression that something has changed a lot. But this situation is really improving step by step, government’s approaches are being improved right now. There are such aspects as automatic VAT refunds. We greatly improved the inspection system last year. And we really hope that a fundamentally new, fully online system of inspections will start working in the autumn.

In addition, in 2017, we should improve our positions in the Doing Business rating, because we have implemented many targeted initiatives.

Therefore, my overall conclusion: the situation becomes better, but not much. The business can really feel it only when we restart lending, finally free up the land and natural resources and allow them to be a full part of public turnover. Because now, even if you own a quarry, you can not attract credit resources to place a new line there. Because the state still keeps your hands tied with the help of permits.

To allow business to develop successfully, it is necessary to fully switch to market relations. The land should be a commodity. And procedures of using natural resources should be established in such a way that there is a particular owner, who is responsible for the quality of their use. And at the same time, he could fully dispose of them.

Today, three things are important for foreign investors. The first one is the understanding that if you freely invested your money, you can also freely take them back. So that you are not afraid that someone will take them away, nationalize or simply freeze them.

The second aspect is the understanding of the existing rules. That is, how to behave in this country so that you will have no problems.

And the third one is the stability. This is what they want. Stable predictable rules and free flows of capital that will allow them to be mobile. If I invested some money today, I have the opportunity to withdraw the received profit without any problems. These are three key things that foreign investors need today.