Featured Remarks

US-Ukraine Business Networking Series Forum VII
The International Investment Forum and Road Show:
Invest in Ukraine/Revealing the Potential

Featured Remarks Invest in Ukraine: Revealing the Potential”

Yuriy Sergeyev

Featured remarks by the Permanent Representative of Ukraine to the United Nations, Ambassador Yuriy Sergeyev, delivered during the International Investment Forum & Road Show Invest in Ukraine: Revealing the Potential”, New York, NY, June 10, 2013.

Dear Guests! Ladies and gentlemen!

It is a great pleasure to welcome you at the opening of the Second day of the International Investment Forum & Road Show INVEST IN UKRAINE: REVEALING THE POTENTIAL”.

I want to begin by thanking organizers of this Forum for making it a great event.

I would also like to give a special welcome to our participants from private sector, whose presence is essential to the success of the Forum.

This event brought together representatives of public and private sectors from United States and Ukraine, those who already know Ukraine well and those who are yet to discover all the benefits our country can provide for investors.

I am confident that the Forum will become a platform for presenting potential of Ukrainian economy and attracting investments.

I would like to assure you that we highly appreciate existing relations of American-Ukrainian partnership and I hope these relations will deepen, broaden and strengthen at the end of the Forum.

Today you will have a chance to get to know closer the perspectives of investing into one of the most dynamic economics of Europe with a huge potential for development.

Ukraine is the country with highly developed economy, including high technological fields, such as airplanes and ships building, computer and IT technologies. And particularly we are the country with highly qualified human labour resources. Ukraine has one of the most educated populations in the world and takes on the first positions by number of certified IT specialists.

More than two years ago we started implementing the program of large-scale economic reforms placing first the improvement of investment process.

During these years we”ve passed a very hard way from deep economic crisis to the nowadays growth of our economy.

According to the governmental macroeconomic forecast, this year Ukraine expects 3.4% GDP growth under optimistic scenario or 2.5% under pessimistic scenario. However these figures will be revised in the course of the year due to economic processes in Europe and in the world.

We”ve set an ambitious goal to ensure sustainable economic growth through structural adjustment and transition to the innovative and investment model of development.

By the end of the first quarter of 2013, the overall volume of direct investments into Ukrainian economy reached 55 billion USD and increased by 10% in annual term.

As a result of 2012, we could see increased growth of investments into Ukrainian economy by 15%. It is not enough and there is huge potential for future growth. For example, retail trade increased this year by almost 13%.

We understand that investments are usually targeted to the high returns of the domestic market and high purchasing power.

Ukrainian economy definitely meets such demands. It continues to develop. Irrespective of the difficulties of global economy, year 2012 reaffirmed this fact.

Sustainable economic growth will create conditions for broadening internal demand and thus, for the bigger return from investments.

The volume of the capital attracted is not just statistics. It is the estimation of business-climate and political stability in the country.

Ukrainian competitiveness also increases due to the investment reform that has been implemented and is a key element of the Program of economic reforms.

Its priority directions are the reduction of state interference in business activity, simplification and improvement of regulatory procedures.

We also harmonize national systems of technical regulation of industrial products and control over the quality of food products in accordance with European Union demands.

Ladies and gentlemen!

Ukrainian Government has set out priority fields of economy attractive for investors.

These are, first of all, energy (both traditional and alternative), infrastructure and agriculture.

In those fields Ukraine is a global player and plays significant role in world economy.

In each of the abovementioned directions we have started realization of large-scale national projects. These projects have special support on behalf of state authorities.

And these projects can be of real practical interest for your investments. As of now there are 17 national projects being implemented under guidance of State Agency for Investment and National Projects of Ukraine.

Ladies and gentlemen!

One of Ukraine”s advantages is a favorable geopolitical position with access to the three strategic regional markets of the EU, Russia and Asia; good connection with the Middle East region via sea routes and the fact that four of the 10 European transportation routes pass through our territory. Ukraine has 19 international airports with direct flights to world capitals and big cities and 7 international sea ports with cargo terminals.

Ukraine also has great agricultural potential, with 56 per cent of its territory suitable for agricultural use, in addition to possessing one third of the world”s black soils.

Ukraine is a dynamically evolving consumer market. The state has revealed a series of legislative initiatives to attract investors and assist them in this market: the new tax system provides investors with new opportunities; the requirements for the minimum capitalisation of enterprises have been mitigated; there is a mechanism of automatic compensation for exporters, and certain industries such as shipbuilding, aircraft construction, hotels and alternative energy receive a 10-year tax holiday.

A new law on industrial parks in Ukraine is based on the successful experiences of their construction in Eastern Europe. Prepared by leading international experts via Project LINK (USA), the law has already been implemented in some regions of the country.

Another prospective sphere is transport infrastructure. Ukraine needs not only international transport corridors but also local communications in the country. Development of intercity transportations, interregional aviation, revival of river transport… it is only a short list of spheres waiting for investors.

We also see great prospects in investments in tourism industry.

In the course of EURO-2012 preparations we”ve opened just a little part of that potential and created a platform for its further development.

Ladies and gentlemen!

As I mentioned, Ukrainian Government can guarantee full support for investments into national projects implementation and for all foreign investments.

You can count on political stability in our country and on governmental course for support of foreign investments to remain unchanged in the future.

I invite you to use this opportunity to discover Ukraine – undiscovered treasure of Europe.

I wish constructive discussion and fruitful work for all the participants of the Forum.

Thank you!