Daily Archives: July 15, 2016

Colonial trading stations instead of factories in Ukraine

by Michał Kozak

The western companies that come to Ukraine concentrate mainly on exploitation of the country’s raw materials and not on innovation.

The Ukrainian government is counting on millions of dollars of Western FDI which is supposed to put the ruined economy back on its feet. However, the companies that will come will concentrate mainly on exploitation of the country’s raw materials and not on innovation. According to a study of the European Business Association (EBA), Ukraine’s Investment Attractiveness Index reached 2.56 points in 2015 on a scale from 1 to 5. That’s slightly better than the previous year – the level of general dissatisfaction of investors was 8 per cent lower than in 2014. 16 per cent of companies indicated a slight simplification of customs procedures, 11 per cent stated that doing trade had become simpler but the basic problems that continue to be is the pressure of tax authorities and the pervasive corruption.