After the signing of the economic part of the Association Agreement between Ukraine and the European Union (EU) a certain stirring up in the inflow of investments to the country can be expected, as well as a gain in the short-term outlook for some Ukrainian agricultural producers, metal companies and light industry, Director of the Center of Global Economy and International Relations of the Academy of Science of Ukraine Oleh Ustenko has said.
“One could expect that investing will stir up to some extent, and
this is a positive signal. For example, yesterday the insurance of risk
of operations in Ukraine continued to fall,” he said at a press
conference in Kyiv on Friday.
Ustenko said that if 1.5-2 months ago the level of insurance of risk
of operations in Ukraine was around 1,300 basic notches, now it is 800
basic notches
“You used to have to pay 13 percent to insure capital that entered Ukraine, and now it is 8 percent,” he said.
Economists believe that after the free trade zone between Ukraine and
the EU takes effect, some Ukrainian agricultural producers will grain
in the short-term outlook – mainly those who are involved in grain
business. Metal companies will also win, and light industry will have
additional opportunities.
In addition, one could expect that investment inflow will be seen to the energy sector.
Ukrainian ambassador and former foreign minister Oleksandr Chaly said
that there are risks for industry in the eastern part of Ukraine after
the creation of the free trade zone with the EU. He said that after the
Vilnius summit in the European Union it was recognized there was a need
for aid to Ukraine to adapt its economy to the new situation, and there
are certain agreements on the issue.
Chaly also said that if in next 18 months nothing negative occurs in
Ukraine, the small and medium-size business of the European Union could
show a serious interest to the Ukrainian economy. They know how to use
the opportunities from the creation of associations with other European
countries.
He said that European small and medium-sized businesses is tired of
red tape basis of the European economy and wants to work in more liberal
markets.
