Page 38 - UKRRptSept22

5.3 FDI
The development and implementation of investment projects within the framework of the investment nanny program have been simplified. The investment nannies mechanism provides for the assignment of specialised employees for large investors, who help overcome bureaucratic problems and provide general information and guidance. These are projects with a minimum financing amount of €20M and a duration of up to five years. Investments eligible for the program are in the areas of processing industry, extraction of minerals for further enrichment, waste management, transport, logistics, education, health care, etc. The government’s decision simplifies the preparation of the technical and economic justification of the investment project. It changes the approach to reflect the implementation's legal, social, and organisational aspects for potential projects, reducing the burden on initiators and speeding up funding acquisition. In addition, the state provides support in the form of certain tax and fee exemptions, import taxation of new equipment, and provides investors with land plots and necessary infrastructure.
Ukraine's investment attractiveness rating has fallen to its lowest level since 2013. In the first half of 2022, Ukraine’s investment attractiveness index decreased by half a point and amounted to 2.17 points out of a possible 5, which is the lowest value since 2013, reported the EBA. The assessment of Ukraine’s investment environment has deteriorated as expected, to the point where 53% of top managers consider it extremely unfavourable, compared to 5% half a year earlier. Another 34% believe the investment environment is somewhat unfavourable, and 9% of directors have a neutral assessment of the current investment climate, while another 4% consider it favourable. The evaluation of the six-month dynamics of the investment climate has also significantly deteriorated. Negative dynamics are observed by 79% of investors, however, 17% believe the business climate has not undergone significant changes, 38% of respondents expect further deterioration of the situation, 36% believe that the investment climate will not experience significant changes, and 26% predict its improvement by the end of the year.
38 UKRAINE Country Report September 2022 www.intellinews.com