Investors identified key areas for Ukraine’s focus in 2016

Summing up 2015 for the business community the American Chamber of Commerce in Ukraine conducted a survey on the investment climate in Ukraine with the participation of 166 Chamber members. Respondents shared their assessments of progress and vision with regard to further development of key sectors of the Ukrainian economy.

In the research, business identified the most prospective areas for growth in 2016. The majority (64%) reported agriculture as a sphere that has the highest potential for improvement this year. However, business believes that this sector requires the development of alternative instruments of financial support for small and medium-sized farmers, further deregulation (to simplify the process of obtaining permits) and the introduction of an agricultural land market.

Information technology, market consumer goods, banking and finance were also identified as promising sectors.

At the same time, business expressed expectations with regard to further changes in taxation policy (73%), customs regulations (64%), legal policy (62%), healthcare (61%) and investment policy (53%). Note that the survey was conducted at the end of the year, prior to the adoption of amendments to the Tax Code of Ukraine. Since then, some important changes have been introduced, as advocated by the Chamber. Business finds it necessary to continue dialogue with the Ministry of Finance to reform the State Fiscal Service, as this issue is a priority for both sides.

Investors believe that corruption is still the main challenge for the carrying out of transparent business in Ukraine (75%).

“Corruption has long been problem No.1 for conducting efficient and transparent business in Ukraine. To eradicate it, we need to hold open transparent tenders through independent auditors, change staff in the most problematic institutions and to bring to justice corrupt individuals and reform public administration”, the President of the American Chamber of Commerce in Ukraine said.

The Ukrainian legal system (16%) and significant bureaucratization (9%) are also seen as problems by the business community. To reduce bureaucratization, Chamber members suggest simplifying communication between business and administration through the introduction of electronic services at all stages of the exchange of information, namely: automated registers, agencies, centralization of information and open sharing.

Despite the general uncertainty regarding the economic situation in Ukraine, members of the American Chamber of Commerce see many unused opportunities in a number of economic sectors, highlighted in more detail in the recently released publication by the American Chamber of Commerce in Ukraine “Country Profile — Ukraine at a Glance”, offering important insights into Ukraine’s economy and developed with the help of leading experts among members of the American Chamber of Commerce.