Ukraine to revise business rules to help economy - Deputy Economy Minister
Kyiv • UNN
Ukraine's government is working to overhaul its business regulatory system, abolishing hundreds of documents to help stimulate the war-torn economy.
Ukraine's government is working to overhaul the business regulatory system with the abolition and updating of hundreds of documents to help businesses and stimulate the war-torn economy, Deputy Economy Minister Oleksiy Sobolev told Reuters in an interview, UNN reports.
Details
Reportedly, the reform to review about 1,300 existing regulations, licenses, and permits began last year. About 100 documents have already been canceled. "Another 400 procedures will be canceled this year, and 500 procedures will be updated and digitized," Oleksiy Sobolev, the deputy economy minister overseeing the changes, told Reuters.
"The main idea is that now people must either fight or work," Sobolev said in an interview. - "Therefore, we need to create an environment that does not interfere with business and where business can operate in the most favorable conditions.
In 2022, the economy shrank by about a third, the largest year-on-year decline in Ukraine's 30 years of independence. Thanks to billions of dollars in financial aid from Ukraine's Western allies, the government has maintained economic stability and businesses have adapted to the realities of wartime.
In particular, Ukraine's small and medium-sized businesses have proven to be adaptive, helping the economy as a whole, Sobolev said.
"SMEs in Ukraine are diversified, diverse, and this contributes to economic stability. SMEs adapt faster, we really see this resilience in SMEs, so it is important for us to support them," he said.
According to Sobolev's estimates, after the regulatory changes are made, companies will be able to save between UAH 12 and 13 billion (USD 320-345 million) annually.
According to him, agriculture, a key sector and the main source of hard currency income, will benefit the most from the ongoing reform.
The revision of the rules was also part of Kyiv's homework, Sobolev said, as the government continues to work with the European Union on a four-year funding program for Ukraine.
Earlier this month, the EU approved a €50 billion package. Sobolev confirmed that the government hopes to receive €18 billion in budget support this year.
A total of 39 billion euros will be allocated to Ukraine's budget until 2027. Sobolev said that the government hopes that most of this amount will be received in the first two years.
The Ukrainian government also wants to increase economic self-sufficiency, and the EU package includes €8 billion intended to attract more investment in priority sectors that can boost economic growth.
The priority sectors are agriculture, energy, information technology, logistics and transport, and industry.
Sobolev expects access to capital for Ukrainian businesses to improve this year, noting that profitable projects and transparency will be key.
"Together with the Europeans, we expect that this will help attract up to $30-40 billion in additional investments to Ukraine over the next four years," he said.