Ukraine has to fulfill all clauses of Memorandum between Ukrainian government and venture capital and capital investors

Kyiv, May 19, 2015. Ukrainian government has to give a clear signal that the rules of doing business have changed in order to increase investments to the country. Jaanika Merilo, Managing Director of “Ukrainian Venture Capital and Private Equity Association” (UVCA) and Yaroslava Johnson, President and CEO of Western NIS Enterprise Fund expressed their confidence in the critical need for the state to fulfill the Memorandum between Ukrainian government and venture capital and capital investors during the press briefing at Ukraine Crisis Media Center.

Jaanika Merilo noted that direct investment in the Ukrainian economy in 2014 was estimated at 0,0046% of the country’s GDP. Members of UVCA invested about USD 1,4 billion. Ms. Merilo thinks that the flow of investment in 2015 is not going to exceed these numbers.

Ms. Merilo noted that despite the military conflict in eastern Ukraine investors still contributing to the Ukraine’s economy. Yet the government needs to make decisive steps, such as to secure fair judiciary, start effective anti-corruption practices and clearly articulate the government’s determination to fulfill the Memorandum on cooperation of investors with government. “Government needs to keep its promises given to the business and to Europe. It has to stop saying that no one is interested in investing in Ukraine, creating attractive conditions for investors,” she said.

Sevki Acuner, Director of the European Bank for Reconstruction and Development (EBRD) Ukraine, noted that EBRD remains one of key investors in Ukraine. According to Acuner, EBRD investments in Ukraine in 2015 is going to amount to 0,9-1 billion euros.

“We have plenty of projects in our portfolio in Ukraine, both in the private sector and in the infrastructure, focusing on production, commercial and IT industries,” Mr. Acuner said. Overall, EBRD invested 6.3 billion euros and 9 billion more under co-financing conditions in Ukraine.

Yaroslava Johnson considers deregulation an important step that to demonstrate to the business a new quality of state governance. “It is what drives mad each businessman. Those stupid laws, stamps… No one can tell where many requirements came from. Every next government talks of the “open window” policy, but where is it?” Yaroslava Johnson asked.

Ms. Johnson also said that the institution is engaged in a number of projects in Ukraine, which aim to increase public education among businessmen, showing them best world practices in order to the level of management in the country. She said that Ukrainians could compete for eight scholarships provided by the “Economic Leadership” project.

Ministry for Economic Development and Trade cooperates with the Western NIS Enterprise Fund training top managers of 50 state enterprises.

Memorandum between Ukrainian government and venture capital and private equity investors >>>