'Ukrainian authorities do not like law-abiding citizens, they do not like tax-paying companies.'
ul Monday June 23 from foreign businessmen frustrated by the slow pace of change. Yet even as they recounted their struggles with gloomy relish, participants in the open forum organized by the American Chamber of Commerce expressed doubts the visitors could make a difference. When one member of the delegation implied that Ukraine was not a ‘normal’ country, the businessmen snickered. They used words like ‘uncivilized’ and urged American officials to be tougher. The delegation should tell the Ukrainian government that ‘you have to start to behave like adults,’ said Dmitry Levin, commercial director in the local office of the S.C Johnson Co. Until recently, the company’s local successes have been cited as a counterpoint to other investors’ tales of woe. The seven-member delegation, which includes representatives from the U.S. departments of State and Commerce, the U.S. Agency for International Development and an aide to White House adviser Richard Morningstar, is here on a five-day visit on behalf of the commission co-chaired by Ukrainian President Leonid Kuchma and U.S. Vice President Albert Gore. The Americans are here to raise with the Ukrainian government ‘issues relating to the transparency of their decision-making,’ said head of the delegation Jeffrey Bialos, the principal deputy assistant secretary of commerce for import administration. When Bialos asked businessmen to comment on their difficulties, the initial response was sluggish. ‘We got tired of complaining,’ someone grumbled when one member of the delegation questioned the reticence. With prompting, however, the weary entrepreneurs and representatives of multinationals focused on three issues: judicial rulings and enforcement, taxation, and licensing and certification. In all three areas, they described how discrimination, procrastination and obfuscation have cost them hours of working time and thousands of dollars. Businessmen charged corruption is at the root of such behavior. They pointed out that many regulations on taxation and certification have not been published, preventing companies from keeping up with changes, and forcing them to unwittingly break rules. Ukrainian officials can than move in to collect huge fines, they complained. ‘Ukrainian authorities do not like law-abiding citizens, they do not like tax-paying companies,’ said Levin. Businessmen warned Western bureaucrats that they may succeed only in teaching Ukrainians how to couch corruption in appearances of even-handed regulation. ‘You teach them so well, they know what to do and they turn it against us,’ said Joseph Lemire of Gala Radio, whose problems with Ukrainian broadcasting authorities have symbolized the obstacles facing foreign investors here. American officials urged patience, arguing that Ukrainian leaders are sincere in their desire to improve the business climate. ‘There is reason for optimism,’ said Ken Lechter of the U.S. Department of Commerce. ‘We have to keep the heat on.’ Businessmen said they are not convinced of their tormentors’ good intentions. ‘It’s simply greed,’ said Lemire.
