Those who invested in Ukraine in the past, could be not so happy with the result, to which the justice system have been a hindering factor, the laws that have been limiting activity, taxation and many other things. But how can a situation be changed today?
Last four months I have spent in Ukraine accompanying work of some international investment projects. Ukraine is a country with a great potential in all the specters: in natural ones as well as in human resources, not speaking of the fact that it’s in the center of Europe. But these are well known facts since long ago. And today I can distinguish at least 6 reasons why it is necessary to invest in Ukraine:
The reason 1. The agreement on overall and free commerce between Ukraine and EU which gives the post-Soviet country access to the big European market. Today the market of EU is twenty times bigger than the Russian one. It obliges Ukraine to accept hundreds positive laws which are supposed to help the country to create a favorable business climate.
The reason 2. The government is planning to minimize dependence of investors on bureaucratic system and to simplify many paper linked issues. The changes that have been introduced to legislation before June, 1st, 2016, will affect an assessment of World bank in a world rating of favorable conditions for business Doing Business. Experts expect Ukraine hits top-50 of the best countries for business dealing when now Ukraine takes the 83d line, between Saudi Arabia and Brunei.
The reason 3. In 2015 Ukraine was able to stabilize its financial system. The level of annual inflation was sharply reduced: from 61% in April, 2015 down to 9,8% in April of 2016. From the third quarter of 2016 commercial credit rates also should be decreased down to 20%.
The reason 4. The changes of the tax laws.
For a long time in Ukraine there have been ultrahigh taxation of work kept at a level of 45% from salary. It is almost the highest rate in Europe. This tax had been reduced down to 22%.
The reason 5. Nowhere in Europe investors won’t be able to find so qualified employees and for such small of a price. Ukrainian salaries officially make one eighth from the Polish ones. And for this very reason it is worth to move manufacture to Ukraine.
The reason 6. Large-scale reforms in an energy sector.
Striving for energy independence is a key issue in economic policy of Ukraine at the moment, so for this reason the energy sector is the most potential for any kind of investments.
On June, 27th in The Heinrich Böll Foundation in Berlin a round table was held with participation of the Ukrainian and international experts on subject matter «Energy reforms in Ukraine». For the last two years in the area of Ukrainian power engineering significant changes took place. Ukraine has become independent from direct gas deliveries from Russia and has replaced priority coal with nuclear energy. But at the moment new possibilities are being opened. The international team of experts has been formed which works over the new legislation in issues of oil and gas policy.
Out of positive tendencies there have been changes in the agrarian rent of natural resources, which has decreased from 70% to 29%. That will allow to increase possible profit in 2-3 times. The key issues are solved behind “the closed doors” and in their decision the limited number of representatives of the government and the invited experts are devoted, in order to reform system in a direction of energy freedom.
Not all things may be and are needed to be disclosed, but as we all know, in any sector time is important, and those who come to something new first, in most cases obtain the maximal return on investments. From my part, I can tell that this period of time is reformative for Ukraine.
My dream was and remains now – to help Ukraine to reach energy independence, to be getting the best equipment from the USA for this kind of branch, to involve the maximal number of the international investors, to become the exporter country of oil and gas, thus creating favorable conditions for a successful life of citizens of Homeland of my ancestors, for Ukraine. Our company SE actively participates in development of oil and gas sector, selection of the necessary equipment and work with investors under energy-related projects in the country, entirely supporting progress of Ukraine!
P.S. If you would like to learn more of how it is possible to invest advantageously in Ukraine, and thereby not just simply get significant returns, but also to help the country with its striving for prosperity and European bright future, just connect with our company by contact info on a site https://skyledllc.com/
Andrey Avramenko, CEO of Skyline Energy Development