How to improve Ukraine’s business climate

  • How to improve Ukraine’s business climate
Issue 54, February 2013.

How to improve Ukraine’s business climate

The beginning of the year has set the tone for the next twelve months. An important meeting held on January 18 could not have come at a better time, as the newly appointed government of Ukraine hosted 30 representatives of the European Business Association – the heads of leading companies operating on the Ukrainian market - at the Cabinet of Ministers of Ukraine.
EBA President Tomas Fiala opened the proceedings. His report featured a general overview of the macroeconomic situation, and he gave his opinion regarding the future development of the Ukrainian economy in 2013.

Tomas Fiala.
EBA President, CEO of Dragon Capital

“What needs to be done to encourage foreign companies operating in Ukraine to invest more, increase production (for both local consumption and exports), and thereby create new jobs, boost revenues and profits and hence pay more in tax? There can only be one answer — reforms, however unpopular they might be. Precisely how we welcomed the government’s challenging pension reform steps, we will readily offer our support and assistance in deregulating the business environment, phasing out utility tariff subsidies, and reducing the state budget deficit, to mention just a few areas.
Together with substantial monetary relaxation and a flexible exchange rate, this will make Ukraine more competitive and attractive as a destination for foreign manufacturers. The reforms I mentioned are in effect the ultimate social policy, as the investments they will help to attract will drive the demand and competition for labor, and that in turn will boost local salaries and living standards.”

EBA Executive Director Anna Derevyanko was next to address the meeting, giving a report on the conditions required to foster an attractive investment climate. After Derevyanko's speech, she answered a wide range of probing questions from EBA representatives on the current state in a number of areas of business.
The meeting was a positive start to relations between the business community and the country's government institutions in 2013. In particular, it shed light simultaneously on various strategic issues that had earlier been selected as the priorities of the EBA's committees for 2013.
Senior cabinet officials displayed a genuine interest in collaborating with the European Business Association as a strategic partner. It was decided to share responsibilities in jointly resolving certain problems and particular issues that affect the interests of the business community.
EBA presented its point of view on changes that must be done in different spheres, such as:
- Banking sector;
- Protecting the rights of investors;
- Customs relations;
- Dairy Industry
- Health Care – technical barriers to success
- Information Technology
- Waste management and other. For more information, please, go to www.eba.com.ua