13:15 30.07.2020

Vadim Drobot: why the new investment law will completely change the economy of Ukraine

3 min read

The draft law "About state support for investment projects with significant investments" provides for the introduction of the institution of a special investment agreement, which will be concluded between the investor and the Government of Ukraine in the framework of the investment project with significant investments.

The law should regulate the procedure for preparing applications and making a decision on the expediency or expediency of concluding a special investment agreement and determine the guarantees of the rights of investors implementing investment projects with significant investments.

Why is attracting investment to Ukraine a problem?

"Very few investment projects are being implemented in Ukraine. Investors prefer the markets of the Czech Republic, Poland, and other European countries. Ukraine occupies a much worse competitive position for investors. Firstly, there are no reliable instruments to support foreign investment. Secondly, corruption. Investors are discouraged by the lack of guarantees ", says Drobot Vadim Vadimovich, an investment expert.

Ukraine is attractive for investment with its resources and cheap labor. The agricultural sector and the IT sector are well developed here, which is now developing even more dynamically. In addition, the automotive and aviation industries are also becoming competitive.

Today, there is a need for competent state regulation of investment activities and the new investment law has this goal.

"The project is being implemented in the field of infrastructure, logistics, tourism, healthcare, education, sports. The state will provide tax incentives for up to 5 years, which is a very important point for investors since tax rules are often changed in Ukraine. If we continue the topic of corruption, then the legislator will also I found a way out. After the conclusion of the contract, investors will receive support from an investment manager throughout the entire time, " explains Vadim Drobot.

In connection with the quarantine, there are fears that unemployment will rise by 10-12%. The service sector will suffer the most, and the country needs jobs. The timely implementation of this law will help the economy.

But why should foreigners invest in another country during a crisis?

"The law is also designed for the domestic investor. There are many industries that need financing. There is also such a hope that the Ukrainian economy will acquire a production direction and the country will complete European integration. Either we change the investment climate or continue to borrow money," says Vadim Drobot.

We hope that investors will trust the new legislation and the situation will change over time.