ODESA. Sept 22 (Interfax-Ukraine) – The increase in internal and external investment is the key factor for accelerating the economic growth in Ukraine in coming years, and the most promising sectors for the next two years are agriculture, infrastructure and energy sectors, Managing Partner of ICU Investment Group Makar Paseniuk has said.
Speaking at the Ukrainian Financial Forum organized by ICU in Odesa on September 21 and September 22, he said that capital investment in Q2 2017 grew to 15.4% of GDP from 15.1% in 2016 and 13% in 2015, although they should be at least 20-25% of GDP for the desired economic growth.
Explaining his selection of the sectors, Paseniuk said that in agriculture, infrastructure and energy sectors Ukraine has a global competitive advantage or needs to develop them to ensure the long-term economic stability.
As an example, he took the capacities in power generation and energy supply, estimating the necessary amount of investments to restore their operating lives, which have already been exhausted by 70-80%, at $15-20 billion.
“Market prices and transparent, unchanging rules will create conditions for the investment in the extraction, transportation and distribution of gas, oil, coal, and electricity, and the development of competition in these sectors will ensure minimum prices for consumers, while bringing Ukraine closer to energy independence,” he said.
Paseniuk also said that the farmland market is the reserve for attracting $15-20 billion of investments. In his view, the formation of the market could begin with state-owned land.
He added that preference should be given to direct investments than debt financing, and in terms of currency this should be a financial tool nominated in hryvnias.
Completion of cleaning the balance sheets of financial institutions from low-quality assets should increase the activity of the Ukrainian financial sector and its involvement in investment, according to the expert.
Paseniuk said that an important factor for growth of investments is justice, the presence of transparent and unchanging rules of the game.
“Therefore, one of the priorities for all should be judicial reform, which will ensure real protection of property rights and impartiality of decisions made by courts,” he said.
