Ukraine due to its potential, highly qualified human capital, domestic market potential, is a state with large space for investment activities in all economic sectors. The key factor that significantly affects the investment attractiveness of country and its territories is the investment climate, which has a positive dynamic.
Today, Ukraine is increasing its investment attractiveness. At the same time we are actively involved in global processes, and integrating into the world economy. In the Doing Business 2019 ranking, Ukraine ranked 71st from 190 countries. The greatest progress Ukraine has demonstrated in these rating components: +5 points (from 35th to 30th place) in the component «obtaining building permits» and reducing the cost of technical supervision services; + 41 points for «tax payment» for the reduction and unification of UST (unified social tax) rate.
Thanks to the European partners` support in Ukraine, hundreds of projects are being implemented to develop transport infrastructure, housing and public services, SMEs support, energy efficiency, etc. The amount of financial and credit EU support in the reporting year amounted to more than EUR 1.2 bln.
According to the Report, Ukraine has achieved the greatest progress in such areas as business, agriculture, technical barriers reduction to trade, social policy and labor relations, the financial sector and energy. Also during the past year, our state has additionally fulfilled 10% of the obligations envisaged for 2017.
In 2018, Ukraine fulfilled almost 90% of its commitments to approach EU norms and practices in the entrepreneurship field. In particular, in October 2018 Verkhovna Rada adopted the Bankruptcy Code. The document not only increased bankruptcy procedures` efficiency and creditors’ rights protection level, but also settled the solvency restoration procedure of individuals in a difficult financial situation. In addition, monitoring and control system of state aid to enterprises was established. The criteria for assessing state aid in various economy sectors were developed and approved. The Antimonopoly Committee official website began its work and became the primary information source on the state aid` objectives, form, volume and budget.
Last year, Ukraine continued international technical regulations transition, which allows reducing non-tariff barriers to trade and improve domestic industrial products` access to world markets. So, important steps were taken to develop and approve technical regulations, standardization and metrology, which are necessary for signing Agreement on conformity assessment and acceptance of industrial products (ACAA). From January 1, 2019, almost 11 thousand old standards developed before 1992 were canceled, which is 90% of the total. Work is continuing on the harmonization of Ukraine legislation with EU law and the Agreement on technical barriers to trade in the World Trade Organization (WTO).
The result of the introduced European integration changes was Ukraine’s foreign trade growth with the EU countries. Over the past year, Ukraine sold goods to the EU countries for more than $ 20 bln, which is 42% of total export. For comparison, in 2017 this figure was a little over $ 17.5 bln. So, we can say that Ukraine continues to fulfill the Agreement` provisions necessary for the deep and comprehensive free trade zone functioning.
Today, almost 15 thousand of Ukraine companies are exporting to the EU. The leading markets for us are Poland (17%), Italy (14%), Germany (10%), Hungary (8%) and the Netherlands (8%). Analysts believe that the Ukrainian export growth trend to the EU will continue in the future.
A full report on the Association Agreement implementation between Ukraine and the European Union in 2018 can be found at the link.