Kyiv, February 5. 2015. Governments of Ukraine and Japan have signed a bilateral investment protection agreement, which is an important element for securing more investments from the Government of Japan and Japanese private industries. H.E. Shigeki Sumi, Ambassador Extraordinary and Plenipotentiary of Japan to Ukraine, told this during the press-briefing at Ukraine Crisis Media Center. “This document pursues two goals: to reinforce Japanese investments in Ukraine and to protect them from illegal confiscation,” Japan’s Ambassador said.
Japanese investments played a beneficial role for the economies of China, South Korea and other ASEAN members. Mr. Shigeki Sumi said that the Japanese government will contribute to the development of Ukraine under conditions of comprehensive reforms. Japan’s Ambassador emphasized the importance of decentralization reform for the development of Ukraine’s regions. “I have heard a lot about the importance of budget autonomy during my journeys to schools and hospitals in eastern Ukraine. Thus local authorities could maintain and develop their social services. I have met with the Minister of Finance Natalie Jaresko who told me that 30% of tax revenues are delegated to the local governments that used to be collected and given up to Kyiv before,” Mr. Sumi said.
Overall, the Japanese government loaned $1.8 billion to Ukraine for conducting reforms and supplementing foreign exchange reserves.