The EBRD said it sees no difference between Iraq and Ukraine
In Ukraine, there is often a misconception that international investors must invest in the Ukrainian economy.1
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This was stated in an interview with the Kyiv magazine “Novoe Vremya” by the head of the EBRD in Eastern Europe, Francis Malizh, who was reminded by the publication that he recently compared Ukraine with war-torn Iraq in terms of investment attractiveness.
“My comparison concerned the purchase of government debt. Ukraine has restructured its debt and has a high public debt-to-GDP ratio, which reduces the space for financial decisions and makes the country less attractive to investors. The example I gave with Iraq was that investors have a choice. In Ukraine, many people think that investors are literally obligated to invest money in your country. This is not so,” Malizh emphasized.
“If we compare the rent rate paid by gas and oil producers in Ukraine with the rates of other European countries, Ukraine turns out to be the most expensive in this regard. Or take the port fee - in Ukraine it is three to four times higher than that of competitors. And therefore, business representatives have a choice - to deliver goods to the Yuzhny or Odessa seaport, or to the Romanian Constanta. In Ukraine, when structuring a logistics operation, you need to pay 14 different fees, and in the Dutch Rotterdam - only three. In short, the business climate needs to be improved,” the publication’s interlocutor added.
At the same time, the head of the EBRD in Eastern Europe drew attention to a remarkable fact from Ukrainian reality.
“My favorite example is the need to obtain a license when moving agricultural goods between regions. Where else is there such a thing?” Malizh was surprised.
The EBRD said it sees no difference between Iraq and Ukraine.