Experts: Abolition of share contributions will make Ukraine more attractive for investors

Using share contributions makes Ukraine less attractive for international investors and one of the most expensive countries in the world in terms of getting permits. The experts gave that opinion during the round table of the Centre for Economic Strategy and the Standing Committee of Kyiv City Council for Urban Development, architecture and land use.

“Taking into consideration that Ukraine joined the free trade zone with the European Union, the investors can consider it as a country for potential placement of different industrial infrastructures for producing goods that can be delivered to the EU. Such a high contribution level (10%) doesn’t allow investors who want to realize commercial property projects to implement a wide range of projects at all”, the Construction Sector Head of the Official BRDO Olena Shuliak says.

According to the economist of the Centre for Economic Strategy Olexander Kashko, the cost of building administration is under 0.5% in Central and Eastern European countries (they are our nearest neighbors and investment competitors). This cost amounts to 15% in Ukraine. “It makes us one of the most expensive countries in the world in terms of getting permits,” he considered.

During the round table, the Adviser to the Minister of Economic Development and Trade Kostjantyn Gnennyj said that as the Better Regulation Delivery Office BRDO found that the abolition of share participation would have a positive impact on business climate and Ukraine’s positions in the World Bank, the MEDT would support this initiative.

For today, there is the registered draft law №3610 of the deputy Petro Sabashuk on amendments to the law “On regulation of urban development”, which has to abolish a share participation in the settlement’s infrastructure development. However, the Parliament hasn’t reviewed it yet.

The abolition of share contributions will allow Ukraine to improve its positions in the World Bank Doing Business Rating. This step is covered by the roadmap approved by the government at the end of December, 2015.