Keynote Speech — Volodymyr Groysman, Speaker, Verkhovna Rada. 12th Annual Ukraine Investor Conference

Dragon Capital held its 12th Annual Ukraine Investor Conference on March 10-11 in Kyiv. The event gathered close to 300 guests—more than 100 international investors, local investors as well as top management of leading Ukrainian companies, who took the opportunity to gain fresh insights into the economic and political situation in Ukraine and communicate directly with government officials, representatives of international financial institutions and the country’s largest companies in order to make investment decisions.

Below please find highlights from the keynote speech delivered by Volodymyr Groysman, Speaker, Verkhovna Rada.

• There is visible progress in reforms in a number of areas, e.g. fiscal decentralization and patrol police. Parliament approved a raft of anticorruption legislation, and new anti-corruption institutions have been created. The recently approved civil service law will allow for creating an effective civil service in 2-3 years.

• Cooperation with the IMF is one of the main priorities. The authorities are committed to quickly achieve political stabilization in order to unlock the next IMF loan tranche and continue with underlying reforms to keep the IMF program on track. IMF assistance is important in that it buys Ukraine time to carry out wider structural reforms and develop longer-term development strategies. At the same time, the government has tended to abuse the IMF issue by tabling bills and demanding their swift approval only because they are IMF-required.

• A government reshuffle, predicated on a new action plan to be agreed by the current or new parliamentary coalition, is needed to end the recent political impasse, which in itself is the reflection of a broader governance and confidence crisis. “There is no more room for experimenting”, and accelerating reforms along with strengthening the state’s institutional capacity is a top priority.

• The ball is in PM Yatsenyuk’s court to respond to the political crisis. Being the leader of parliament’s second largest faction and still a legitimate prime minister, he should propose an action plan that could consolidate a parliamentary majority. The government’s proposed 349-point program is unrealistic and should be replaced with a shorter 7-10 point plan with a monthly implementation schedule.

• It does not matter if the government is technocratic or politically affiliated. What matters is that it is staffed with professionals. The current government’s decisionmaking process and efficiency overall has been low, as well as its communication with parliament, but a number of ministers have performed professionally and need not be replaced.

• Ukrainian parliament will be reformed based on an action plan agreed with the EU, introducing greater transparency, modern technologies, stronger discipline, and formalizing of relations between the majority and opposition.

• During the upcoming session week (March 15-18), parliament will approve amended legislation on e-declarations for civil servants to meet the EU’s remaining “visa-free” conditions (note: the law was approved on March 15). The legislature may also vote on President Poroshenko’s request to dismiss Prosecutor General Shokin.

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