U.S. Special Representative Pritzker names six key elements for attracting private investment to Ukraine
Security, reforms, new support tools, infrastructure development, Russian compensation for the damage caused and the integration of refugees and veterans are the six key elements needed to attract private sector investment in Ukraine, said U.S. Special Representative for Ukraine's Economic Recovery Penny Pritzker.
At this time, it is critical that we work together to address the fundamental issues. I want to highlight six key elements. Safety first, she said, speaking via video link at the annual meeting of the American Chamber of Commerce in Kyiv on Thursday.
According to Pritzker, the “strategic momentum” remains with Ukraine, which has already been able to recapture more than 50% of the territory captured by Russia at the start of the full-scale invasion.
With our constant help, Ukraine can win this war, the U.S. special representative emphasized.
Secondly, she noted the vital importance of continuing reforms, including for possible accession to the EU. Anti-corruption reform remains critical to attracting the private sector interest needed to fully restore the economy, Pritzker said.
She pointed out that Ukraine has made significant progress in reform in some areas, but many obstacles remain.
The third element, the U.S. special representative called the creation of new support instruments, such as investment risk insurance and marine insurance, which will help economic activity even in conditions of brutal war.
Fourth, she said it is necessary to support the development of the infrastructure needed to expand market access and increase exports. This is where we have the greatest potential for quick wins with the best return on investment in terms of increasing government revenues and profits, Pritzker said.
As an example, she cited the ports of Odesa, whose work in the short term allowed increasing exports of grain and steel from recent averages of 2 million tonnes per month or so to 7-8 million tonnes, which could add $25 billion, or 8% of Ukraine's GDP and potentially increase tax revenues by $5 billion per year, which is almost 10% of the state budget.
The fifth and sixth points, the U.S. special representative named the task of making Russia pay for the serious damage it has caused and reintegrating refugees and veterans of Ukraine.
She noted it is necessary to promote these six fundamental elements and introduce our business and private sector leadership to the corresponding opportunities in Ukraine in six critical sectors: agriculture, technology, defense, critical minerals and metallurgy, energy, and transport and logistics.