Having made a career in investment, I have learnt first-hand what business precisely needs to thrive, and I am guiding our reforms accordingly. Firstly, we have begun the process of de-monopolization and de-oligarchization in every branch of infrastructure. We welcome and value the experience and expertise entrepreneurs can bring.
Secondly, we are implementing tools that will guarantee maximum transparency in Ukrainian infrastructure. Under the law on open data, the ministry has launched a website that displays financial information of the companies subordinate to our governmental body. Further, we are implementing e-procurement in the sector. Now Ukrainian state companies under our jurisdiction are to hold all procurement and tenders online. Also, we have initiated a shift to e-documentation. Along with making the system more open, this measure will increase the speed and effectiveness of services, for example, in seaports.
Thirdly, we have joined the international program CoST. It envisages a number of measures to improve transparency in the construction industry, namely, disclosure of planned projects and international bidding procedures.
Lastly, we have committed to deregulate the sphere as much as possible. The first results of our work can be seen in Ukrainian ports. Specifically, new simplified rules of vessel and cargo registration recently came into force. It used to take as much as a few days to obtain clearance, now it takes 30 minutes at most. Similarly, verification of foreign vessels is now carried out only in the port of entry and the port of exit.
These steps are only the beginning. The ministry has set a goal to create the most favorable business environment possible. We know for sure: when entrepreneurs in Ukraine succeed – the whole country succeeds.
The new Ukraine offers outstanding business opportunities. In July, 2015 we signed a free trade agreement with Canada. And from January, the country will have a Deep and Comprehensive Free Trade Area with the European Union. Therefore, every business operating in Ukraine will get access to the European and Canadian markets. What is more, Ukraine is currently holding active negotiations on free trade with Turkey and Israel.
Ukraine has a strategic location to offer.
Four out of nine Eurasian transport corridors, as well as other key transit routes, pass through our territory. For instance, TRACECA links the European Union, Caucasus, and Central Asia. Ukraine is also a maritime state – through the Black and Azov Seas it connects to the Mediterranean Sea, and thus, to the world. The general coefficient of transit in our state is 3.11, which is one of the highest in South-East Europe. What is more, we have well-developed transport infrastructure: 13 seaports, five major airports, 21,600 kilometers of railroads, and 169,600 kilometers of roads. Such infrastructure enables businesses to establish the most cost and time efficient routes for transiting goods.
Investors coming to Ukraine will receive access to the largest emerging market in Europe – Ukraine itself. Competition is low, meaning that newly-established businesses can become profitable rather quickly. The Ministry of Infrastructure will secure equal conditions and fair competition for everyone.
Manufacturing and production costs in Ukraine are significantly lower than anywhere else in Europe. A prudent businessperson knows very well that this is another opportunity for growth. Instead of taking on higher expenses, money saved by doing business in Ukraine can be put to good use – developing new projects and hiring from our plentiful pool of highly educated graduates.
The new Ukraine is proudly open for business.
France’s Soufflet Group and American Cargill have already decided to take full advantage of the opportunity – they are to invest $70 and $100 million, respectively, in Ukraine’s Illichivsk and Yuzhny seaports. I hope that other investors will follow their lead for the mutual benefit of their businesses and Ukrainian infrastructure.
