UKRAINIAN INVESTMENT CLIMATE IMPROVEMENT THROUGH THE

CZECH EXAMPLE
YULIIA USHAROVA
Scientific Supervisor Assoc.
Veronika Chala, PSACEA
Language Supervisor Assoc.
Anastasiia Tokarieva, PSACEA

Prof.
Prof.

Main steps of Czech Republic on the way to the success

radical market
reorganization
warrant privatization
the Law About attracting
investments
decreasing the tax on profit
for the next 10 years
cession of the territory to
investors at reasonable price
financial support for
offering employment

The main purpose is to investigate Czech investment

reforms, compare them to Ukrainian conditions, and
outline the main directions for their further development
in Ukraine.

Ukrainian-Czech cooperation in the sphere of investment policy

will establish new understanding of those methods that can be
efficiently used in Ukraine.

FOREIGN DIRECT INVESTMENT M USD

140 000
120 000
100 000
80 000
60 000
40 000
20 000
Ukraine

0
2002

2003

2004

2005

2006

2007

2008

Ukraine

Source: insider.com.ua; cnb.cz

Czech

2009

2010

2011

2012

2013

2014

Foreign direct investment in

Czech Republic by economic
activity
1%
4%

14%

Foreign direct investment in

Ukraine by economic activity
manufacturing

manufacturing

1%
25%

financial
intermediation

construction

35%

real estate and

business activities

transport, storage
and
communications

trade, hotels and

restaurants

14%

25%
16%

7%

retail and
wholesales,
vehicles and bikes
repairing
agriculture,
forestry and fishery

transport, storage
and
communications
electricity, gas
and water supply

Source: Czech National Bank

23%

Source: ukrstat.gov.ua

9%
10%

15%

Ukraine has very favorable platform for the growth

if we consider its location, natural and human
resources, research potential and its attractiveness
to foreign investors.

Scenarios for further development of Ukraine

determining
primary economic
sectors
adopting the
Internal Revenue
Code

establishing of
special economic
zones

VAT free
equipment and
goods unrivalled in
Ukraine

decreasing
taxation on profit

including
investment and
innovation
charges into the
gross expenses

duty free
importing of hightech equipment
for knowledgeintensive industry

Investment and Business Development Agency CZECHINVEST

Provision of
information on
the possibilities
of support for
small and
medium-sized
enterprises

Implementation
of aid programs
financed by the
EU and by the
state

Provision of
formal
consulting
services focused
on projects

Administration
of a businessproperties
database

Support for
suppliers
administration
of a database of
Czech suppliers

Assistance with
implementation
of investment
projects

Mediation of
state investment
aid

Provision of
aftercare
services to
foreign
investors who
are already
operating in
the Czech
Republic,
assurance of
support for
reinvestments

CzechAccelerator 20112014

The project was focused on firms with innovative, commercially viable

products in the fields of ICT, life sciences, nanotechnology,
biotechnology, medical technology, clean technologies and precision
engineering.

Over the past four years, the CzechAccelerator project has helped
innovative firms gain experience with doing business in advanced foreign
markets, particularly through development of management experience and
enhancement of marketing skills. Since 2011 it has announced 6 calls in
total and the project has supported 39 companies.

Main Reasons to invest in the Czech Republic

-- Safe investment
environment

-- Skilled and welleducated workforce

-- Favourable
labour costs and
price stability

-- Central location
in Europe

-- Dense and highquality

infrastructure

-- Transparent
system of
investment
incentives

-- Strong focus on
R&D

-- Stable social and

political system

-- EU membership

-- Mentality, culture
and attitudes
similar to those of
western countries

-- High quality of
life

Main Reasons to invest in Ukraine

Convenient
location

Europe-oriented
market

Speedy progress
in country
development

Qualified staff
and low
personnel costs

Low competitors
level in several
economic
sectors

Huge potential

THANKS FOR BEING WITH

US TODAY