Participants of Dragon Capital’s 9th Ukraine Investor Conference Share Views on Ukraine’s Pressing Economic and Political Issues
KYIV, March 5, 2013 — During the morning session of Dragon Capital’s 9th Annual Ukraine Investor Conference held on February 27-28, participating investors were asked to electronically vote on a number of questions regarding their perception of Ukraine’s investment climate and economic and political prospects.
Most questions were carried over unchanged from the 8th conference in 2012, providing for an interesting comparison of this and last year’s results (answers received in 2012 are shown in brackets below).
Questions posed during the panel on Ukraine’s economic and political outlook
1. Would you say Ukraine’s future lies primarily:
a) full membership of the EU — 30% (42% in 2012)
b) ever closer integration with Russia — 7% (24%)
c) closer ties with the EU based on an association and free trade agreement — 48% (this option wasn’t available in 2012)
d) as a “non-aligned” nation maintaining full neutrality versus neighboring blocks — 15% (34%)
2. Ukraine’s biggest obstacle to economic growth and development is:
a) its overreliance on gas imports — 3% (10%)
b) the lack of respect for the Rule of Law – 70% (68%)
c) the residual influence of Socialist planned economy – 4% (6%)
d) the lack of credibility of its political elite – 23% (16%)
3. Ukraine’s biggest asset is:
a) its untapped natural resources – 18% (31%)
b) its human capital – 37% (26%)
c) its political elite – 4% (3%)
d) its geographical position – 29% (31%)
e) its emerging civil society – 12% (9%)
4. From the choices listed below, do you think Ukraine should first and foremost:
a) strike a gas deal with Russia – 7% (26%)
b) secure the next tranche from the IMF – 24% (26%)
c) abandon the peg to the USD – 8% (10%)
d) take all necessary steps required for ratification of a DCFTA with the EU – 53% (32%)
e) join the Customs Union of Russia, Kazakhstan and Belarus – 8% (6%)
5. In 2013, you anticipate Ukraine’s GDP growth will be:
a) below 0% – 16% (3%)
b) between 0% and 2% – 74% (23%)
c) between 2% and 4%– 10% (60%)
d) above 4% – 0% (13%)
6. In GDP/capita terms, you expect Ukraine to converge with its Eastern European peers:
a) within the next 5 years – 3% (3%)
b) within the next 10 years – 31% (44%)
c) within the next 25 years – 41% (34%)
d) within the next century – 16% (6%)
e) never – 9% (13%)
7. For you as institutional investors, when deciding in which company to invest, the most important is:
a) meeting with the owner/management – 55% (40%)
b) the quality/reputation of the auditors – 5% (12%)
c) on which Stock Exchange the company is listed – 6% (16%)
d) the quality/reputation of the bookrunner – 1% (4%)
e) the valuation – 33% (28%)
Questions posed during the panel on Ukraine’s energy transition
8. The shale gas revolution may force Gazprom out of business:
a) in 5 years — 8%
b) in 10 years — 6%
c) in 20 years — 18%
d) never — 68%
9. Do you believe in Peak Oil theory?
a) yes — 41%
b) no — 59%
10. Where do you see the oil price (Urals) by year end?
a) above $110/bbl — 35%
b) at current level (~$110/bbl) — 25%
c) below $110/bbl — 40%
11. From the standpoint of energy security, Ukraine should:
a) set up a JV with Gazprom — 18%
b) maintain its gas transit capacity independently — 11%
c) focus on renewable energy sources — 28%
d) continue to develop unconventional exploration — 43%
About Annual Investor Conference
During the nine years of its existence, Dragon Capital’s Investor Conference was a landmark event, which raises topical issues and makes public statements of the Ukrainian government. This format allows the international investment funds and banks that are willing to invest in Ukraine, to get answers to their questions from the top officials.
For more information please contact us at [email protected].