Keynote Speech — Dmytro Shymkiv, Deputy Head, Presidential Administration. 11th Annual Ukraine Investor Conference

Dragon Capital held its 11th Annual Ukraine Investor Conference on Feb. 17-18 in Kyiv. Despite the country’s tense security situation and economic challenges predictably affecting investor sentiment, the conference was attended by over 100 international investors as well as about 200 local investors and Ukrainian companies.

Below please find highlights from the keynote speech delivered by Dmytro Shymkiv, Deputy Head of Presidential Administration.

Vision and objectives

• Integration with the EU remains Ukraine’s principal goal. Ukraine’s free trade deal with the EU (DCFTA) is more than 50% composed of technical regulations which will take 2-3 years to complete. The government tracks this process to make sure the DCFTA is executed.

• For the first time in its post-Soviet history, Ukraine has clearly defined its vision in Strategy 2020, setting concrete long-term objectives and KPIs. Answers to the question of “how to reach these objectives” are provided by the parliamentary majority’s coalition agreement, the new technocratic and business-friendly government’s reform program, and the recovery/stabilization plan developed together with the EU for the next three years.

• The authorities have to stabilize the economy in 2015 to ensure recovery starts in 2016. To that end, seven key reform directions were defined. Also, the National Reform Council (NRC) was formed to create a platform for discussion and coordination of reforms. The NRC brings together all key decision makers, including the Cabinet of Ministers, the President, the Verkhovna Rada Speaker, the heads of parliamentary committees, the leaders of coalition factions, the secretary of the National Security and Defense Council, the central bank governor, and civic activists.

Immediate reform priorities and progress

• Combating corruption and establishing the rule of law — Ukraine is forming the Anti-Corruption Bureau, with a special committee soon to nominate the bureau head.

• Judicial reform — a law on the new judiciary system has been passed.

• Law enforcement — police reform has started.

• Deregulation — more than 800 regulatory rules were analyzed and are expected to be cut to 170.

• The principal directions in which progress needs to be made are tax reform, healthcare reform, security and defense, privatization of state-owned enterprises, and communication of the reform progress.

• Technical strategies for fighting corruption include introduction of an eprocurement system to save up to $1bn annually (already launched at several ministries and state-owned enterprises); deregulation; introduction of electronic administrative services to tackle petty corruption; the Anti-Corruption Bureau to deal with high-level corruption; reform of the public administration system (a law will be submitted to parliament in 1Q15 to launch the reform in 2016).

• Little progress has been observed in ensuring justice. The biggest achievement so far was to strip the state prosecutor’s office of the general supervision function. The rule of law is the weakest point and the biggest priority for the state.

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