Towards renewal and investment
Before the full-scale invasion of the Russian Federation, Ukraine has already received the status of a country in which it is possible and worth investing. First of all, Ukraine is a state with a huge agricultural potential, powerful energy facilities, one of the largest transport hubs in Eastern Europe, with a favorable geographical location and a developed IT infrastructure. Unfortunately, with the start of Russian aggression, most foreign companies either temporarily suspended their activities on the territory of Ukraine or decided to withdraw from Ukraine before the end of hostilities.
The war continues, but not only Ukrainians, but the entire civilized world believes in our victory over the aggressor.
So, at the international conference, which was held on July 4-5, 2022 in Lugano (Switzerland), a plan for the restoration of Ukraine for the period from 2023 to 2032 was presented. The Lugano Declaration was adopted, in accordance with which the heads of state, government and representatives of Albania, Australia, Austria, Belgium, Greece, Denmark, Estonia, Israel, Ireland, Iceland, Spain, Italy, Canada, Cyprus, Latvia, Lithuania, Liechtenstein, Luxembourg, Netherlands, Germany, Norway, North Macedonia, Poland, Portugal, Republic of Korea, Romania, Slovak Republic, Slovenia, United Kingdom, United States of America, Republic of Turkey, Ukraine, Hungary, Finland, France, Croatia, Czech Republic, Japan, and senior officials and high representatives of the Council of Europe, the European Bank for Reconstruction and Development, the European Commission, the European Investment Bank and the Organization for Economic Co-operation and Development, approved eleven guiding principles for the recovery process in Ukraine, including multi-stakeholder engagement. These principles imply that the recovery process should promote cooperation between national and international actors, including also representatives of the private sector, civil society, academia and local governments.
The Ukrainian government has already introduced a number of reforms to improve the investment climate, such as simplifying business registration procedures, reducing the tax burden, and simplifying conditions for opening bank accounts.
The Cabinet of Ministers of Ukraine also submitted to the Verkhovna Rada of Ukraine draft law 8138 dated October 19, 2022 “On Amendments to the Law of Ukraine “On State Support for Investment Projects with Significant Investments in Ukraine”. In particular, it is planned to make changes in terms of: introduction of a new form of state support, namely, partial compensation for the cost of construction of related infrastructure facilities; expansion of areas in which an investment project with significant investments can be implemented; the investor's ability to start implementing the project before the conclusion of a special investment agreement and to invest in pre-project work (preparation of documentation, purchase of a land plot, etc.) in the amount of 25 percent of the total value of significant investments; reducing the limit on the size of significant investments invested in investment objects before the conclusion of a special investment agreement, and the number of new jobs created during the implementation of the investment project with significant investments in order to be able to attract a larger range of business entities to the investment process - not only large, but also medium-sized enterprises etc.
A positive trend, indicating the establishment of the necessary investment climate in Ukraine, in particular, is the signed memorandums and agreements with such investment giants as J.P. Morgan Securities plc. and BlackRock Financial Market Advisory. This will encourage and encourage foreign investors to invest in business development in Ukraine, which is of great importance for our state, since investments are the key to successful economic development.
In addition, the recent appointment of the head of the National Anti-Corruption Bureau of Ukraine indicates not only the strengthening of the fight against corruption, but also the creation of conditions for the protection of investments.
Senior Lawyer
Oleh Lyhin
