CHAMBER NEWS:

Small & Medium Businesses Development Strategies Conference

The American Chamber of Commerce, at the initiative of Amway Ukraine Ltd, and in strategic cooperation with the Ukrainian League of Industrialists and Entrepreneurs (ULIE) on 15 December 2014 organized the Conference Ukrainian Economic Outlook: Small & Medium Businesses Development Strategies.

The conference became a strategic development platform for micro, small and medium businesses.

Olena Yakymchuk, corporate affairs manager of Amway Ukraine Ltd presented the results of the “Amway Global Entrepreneurship Report 2014”, which outlined attitudes towards entrepreneurship and readiness to develop own business both in the world and Ukraine with a focus on the importance of entrepreneurship education.

Maksym Kunchenko, vice president of Ukrainian League of Industrialists and Entrepreneurs, shared information on the current status and challenges for small and medium businesses in Ukraine. There are three main problems: crediting, state regulation and taxation. To overcome them, it is necessary to unite the efforts of all stakeholders — government, business and non-governmental associations. Only in such a way and in no other way can really effective steps be made.

The conference took place in the format of panel discussions. During discussions the speakers highlighted top-5 key objectives to improve the business climate in Ukraine:

— Building trust — among business players and authorities, cooperation and support of each other both horizontally and vertically;

— Ensuring a stable tax system — constant experiments with the Tax Code should be halted and a simple, clear, understandable system should be finally set

— Joining efforts — so as to implement quality changes it is necessary to establish a common platform for exchange of experience and communication between government, business and non-business organizations;

— Information dissemination on available business opportunities — a variety of grants and support from local and international organizations;

— Fostering of business culture — business relationships require equal responsibility of all stakeholders — both the state and entrepreneurs. Do not wait for just steps from the regulator, but begin with self-improvement.

Tomasz Muras, general manager at Amway Ukraine Ltd, said that working daily with Amway independent entrepreneurs in Ukraine, he noticed that a lot of people, even now, are ready to work hard and conscientiously. For further development of business in Ukraine only a good, balanced regulatory system, government support and a reduction in red tape are needed.

Business community joined reforms in oil and gas sector 

On 19 December the Chamber presented its White Paper entitled “Reforms in the Oil and Gas Sector”, which was developed by members of the Chamber Energy Committee. According to the document, among the top priorities for industry reforms are preventing further monopolization of the gas market of Ukraine; adoption of a new Gas Market Act; adoption of new Rules for Oil and Gas Fields Development; stability of taxation in hydrocarbon production in Ukraine. Experts believe that these and other measures could be implemented as  early at the beginning of 2015. Medium and long-term measures include instruments for attracting foreign investments and improving the investment climate in Ukraine. The package is designed for implementation by the end of 2015. The presentation of the document was attended by representatives of the Ukrainian Parliament, Ministry of Energy and Coal Industry of Ukraine, Ministry of Ecology and Natural Resources of Ukraine, National Commission for State Energy Regulation, State Geology Service of Ukraine, NJSC Naftogaz of Ukraine, energy experts, diplomats, international financial institutions. The Chamber also welcomes the Energy part of the Coalition Agreement and deregulation initiatives put forward by EASYBUSINESS in UA in oil and gas which correspond to the top priorities stated in the document. Graham Tiley, chairman of the Chamber Board of Directors, Shell Country Chair for Ukraine, emphasized that the business community is always open to dialogue with the government: “We are very pleased to see very good linkage between reforms we believe in as industry and the reforms the Government themselves have laid out in the Coalition Agreement. That is why we are talking not only about what particularly needs to be done, but also develop specific solutions and mechanisms to help the government implement its reform program”. Mr. Tiley commented that a part of the suggested measures concern regulatory changes, though there is also a place for fundamental reforms, like reform of the gas market and creating a balanced and fair taxation system.