Practical Recommendations to Foreign Investors in Ukraine
Ukraine has a reputation of providing one of the most difficult legal and economic environments for FDI currently to be found. The currently changing legal and regulatory environment; the omnipresent state bureaucracy; the weak enforcement mechanism; the intransparency of the privatisation mechanisms; they all provide constant and serious challenges to foreign investors wishing to enter Ukraine, or already operating in Ukraine.
At the same time, Ukraine provides enormous opportunities to any investor – whether institutional, private, or corporate – who brings with him a long-term view, patience, and flexibility. More than any other country in central and eastern Europe, including Russia, Ukraine still provides substantial “first-mover advantages” in practically all sector of the economy. Ukraine is a compact country with a population of 46 million potential consumers. It benefits from its proximity to the EU. It has huge restructuring and investment needs. It has significant material and human resources. It has, to date, enjoyed only minimal foreign investment, and the various market sectors are still wide open to newcomers. If a more benign investment environment could be installed, Ukraine could potentially enjoy above average growth rates for many years to come. [Read more →]