20:21 27.03.2024

AHK Ukraine proposes to carry out number of reforms to attract foreign business to recovery process

3 min read

The German-Ukrainian Chamber of Industry and Commerce (AHK Ukraine), in partnership with the German Economic Team (GET), has compiled a list for the implementation of reforms in Ukraine aimed at improving the investment climate, attracting foreign business to recovery, including a proposal to unify the criteria of the Build Back Better principle for restoration projects.

"We welcome this investment policy document, the result of a joint effort between AHK Ukraine and the German Economic Team. The recommendations set out in this document serve as a roadmap for realizing this vision, guiding our efforts to implement meaningful reforms and adopt policies that stimulate innovation, entrepreneurship, as well as economic development,” First Deputy Prime Minister of Economy Yulia Svyrydenko said.

Thus, priority reforms directly related to the reconstruction processes of Ukraine include changes in the field of construction and infrastructure: legislative definition of the Build Back Better principles, improvement of national standards for the construction of modular shelters.

As analysts note, although numerous restoration projects include the implementation of the Build Back Better principle, its interpretations are not unified among companies and government agencies. It is therefore important to create a common recovery framework and standards that align with this principle to ensure sustainability and inclusion in projects.

"This initiative will also improve the consistency and efficiency of resource allocation and implementation of restoration projects. Construction companies, government agencies, international donors and development organizations will all benefit equally," the document says.

In addition, it is important to improve standards for the rapid construction of modular ground shelters. As the document notes, existing government construction standards for shelters do not take into account modular ground shelters, which is why such objects undergo approval procedures as underground shelters, which cannot be implemented everywhere and the construction of which is longer and more difficult. At the same time, safe ground shelters can be quickly deployed in areas with an increased risk of airborne threats.

Other proposed reforms include the abolition of mandatory work permits for foreign company directors, an increase in the threshold for transfer pricing due to changes in the hryvnia exchange rate, a reduction in HR documentation, and an increase in the deadline for submitting SAF-T files to the State Tax Service.

To create equal conditions for new companies in the field of finance, it is also proposed to implement the general agreements of the International Swaps and Derivatives Association (ISDA) for commodity markets with cash payments, and the opening of the Affordable Loans 5-7-9% state program for companies with foreign owners.

In addition, it is proposed to extend the validity of grid connection agreements and technical requirements for renewable energy facilities and recognize the EFET (the European Federation of Energy Traders) general agreements for trading in electricity and gas.