INTERCONSULT

 

FIDUCIA • STABILITAS • FELICITAS

PC Intercosult

PC Intercosult
b. 104, Bazarnaya Str.
Odessa, Ukraine, 65020
Tel.:+380 48 798 7495

 

PC Intercosult

The president of the company
Dr. Gennadiy Trachuk
Tel: +38 068 259 01 44
E-mail: interconsult.ua@gmail.com
Skype: intreconsult_ua

The director of the company
Antonina Haliapina
Tel: +38 068 259 02 39
E-mail: haliapina@mail.ru

The leading expert
Vitaly Serbulenko
Tel: +38 093 6 444 777
E-mail: serbulenko@i.ua

Inflows of foreign direct investment in Ukraine - a matter of a few years, or even months. What sectors investor interested in the first place?

Reasoning financial analysts about the future of the Ukrainian economy is increasingly reduced to the conclusions of an impending crisis due to the loss of the Russian market. The damage, of course, there is not a small, but whether it is critical for the country and its economy as a whole? Try to look at Ukraine through the eyes of foreign investors, which is not very interested in foreign policy, and only care about the opportunities offered by the huge territory of the country by European standards. What sectors of Ukrainian economy may be interested?

First of all, the Ukrainian economy is not as weak as it is referred to outside experts. She suffers not so much from the expensive gas (the suffering of the country Lithuania, Romania, Bulgaria), but from the effects of the board former authorities and from reducing export opportunities limited by a lack of capital in the older industries. But, as the experience of States with forced modernization of the economy is in such capital comes most quickly.

In addition, the Ukrainian industry potentially competitive. Low labor costs in its highly qualified strong domestic market and the low rate of hryvnia can raise capital and make the business profitable for four - five years required for the first phase of modernization.

Therefore, foreign direct investment will come to Ukraine as well as 20 years ago they came to Poland, the Czech Republic, and Slovakia. In addition, Ukraine is not so much dependent on the market in Russia and other countries of the Customs Union. 20 years ago in the former Soviet states of Ukraine exported twice more products than in the EU, and in 2013 - just one-third more. Tighter regulation of mutual trade by Russia in 2013 led to a reduction in exports from Ukraine to Russia for $ 2.6 billion, imports from Russia to Ukraine - by $ 4.2 billion. Last year Russia became the second export market for Ukrainian goods after the European Union ($ 15 billion compared to more than $ 16 billion).
In case of further regulatory regime for trade with the Customs Union, Ukrainian exports there could be reduced by $ 5.4 billion a year. This, of course, the score for a negative scenario. But in the first quarter of 2014 exports to Russia decreased by 23.9% compared to the same period of 2013 main question is how to minimize losses from the loss of the Russian market?

If duties for Ukrainian goods exported to the EU, will be reduced and will remain at an average of 0.5% (which is provided by the agreement on association with the EU), it is already in the first year it will increase to GDP of more than $ 1 billion. If the import duties for European goods will be reduced from 5 to 2.4% for four years, then there is no impact on the Ukrainian industry European competitors will not cause: people will still buy the cheapest bulk commodities - Ukrainian.

Association with the EU promotes energy efficiency and the development of the domestic economy. Instead of moving on the blind alley of subsidies to industrial consumers of gas and coal producers, industrialists and power engineers have a chance to modernize its own production by setting a less energy-intensive equipment. To do this, you need to introduce tax breaks for investors to limit monopoly power grids. Reducing energy intensity to the level of European countries, Ukraine will reduce gas imports and get rid of the position of one of the most energy-intensive economies in the world.
So, now is a good time to buy if you do not, then get ready to invest and develop business plans for market development. Which industries in these conditions may be of interest of foreign investors? In the first place, those who feel relatively well, such as agriculture. Then, those in which the main assets temporarily fell below replacement cost: retailers and commercial property. Finally, significantly affected by the decline in trade with the countries of the Customs Union, but it is not dependent on energy imports or exports, sophisticated equipment, such as furniture and confectionery industry.

If you want to get more information about business opportunities in Ukraine, or to consider investment projects in Ukraine, please indicate contact or fill out the Investor form 

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1/09/2014

based on site: forbes.ua

 

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