Because what is the source of corruption – state-owned companies and bureaucracy.” “It is a mixture of giving room for private capital, liberalization and fighting corruption. “It’s everything when you decrease the interference of the public sector in the business,” Kovaliv said. Of that, Ukraine was only able to attract $3.3 billion, or one-hundredth of 1 percent, out of which more than two-thirds went to Ukraine’s banking sector to make sure it did not collapse.Īnd Ukraine has to act fast, as it soon will have to start paying off its IMF loans, which mature next year.įurther steps that Ukraine has to concentrate on are the privatization and concession of state-owned enterprises to shrink the public sector as much as possible. In 2016, inward FDI amounted to $1.8 trillion globally, according to the Organization for Economic Co-operation and Development. Meanwhile, Ukraine is doing a poor job of attracting investments. The next tranche has been delayed because Kyiv has failed to meet the necessary requirements. But Ukraine received the last tranche of IMF money - $1 billion - in April 2017. The IMF deal came with demands that Ukraine carry out reforms to revitalize the economy and uproot corruption. The IMFs requirements include Ukraine finally raising natural gas prices to market levels and establishing the long-awaited anti-corruption court. “It’s a very important trigger for a lot of investors… Commitment to the IMF program to get the next tranche is like a basic, basic, basic thing for increasing FDIs to this country.” “The crucial thing is the IMF program,” Kovaliv told the Kyiv Post. Kovaliv is convinced Ukraine should stick to the four-year International Monetary Fund’s $17.5 billion bailout program, approved for Ukraine in 2015. While aware of the practical hurdles an investor might face in Ukraine, she can also list the advantages of coming to Ukraine. bribery charges from exile in Austria) she is tackling the legacy of an old economic system inherited from the Soviet Union, while trying to build a new one by attracting foreign investors.
Sitting in her office in one of Kyiv’s only skyscrapers (which until 2016 used to be owned by Ukrainian tycoon Dmytro Firtash, who is fighting extradition on U.S. Global brands such as General Electric, IKEA, H&M and DP World have all consulted with the young ambitious Ukrainian, who was the country’s first deputy economy minister in 2015-2016. The head of the office of the National Investment Council, a non-governmental organization that partners with government to lure investors to Ukraine, Kovaliv works with all of the major investors in Ukraine. 28 at 2:28 pmįew people in Ukraine are as familiar with the country’s investment climate as Yuliya Kovaliv.
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