US Special Representative Pritzker names six key elements for attracting private investment to Ukraine
Security, reforms, new support instruments, infrastructure development, compensation for damages caused by Russia, and the integration of refugees and veterans are six key elements needed to attract private sector investment in Ukraine.
This was stated by the US Special Representative for Ukraine's Economic Recovery Penny Pritzker, Censor.NET reports citing Interfax-Ukraine.
"Now it is extremely important that we work together to address the fundamental issues. I want to highlight six key elements. Security first and foremost," Pritzker said, speaking via video link at the annual meeting of the American Chamber of Commerce in Kyiv.
According to Pritzker, the "strategic momentum" remains with Ukraine, which has already managed to regain more than 50 per cent of the territory seized by Russia at the beginning of the full-scale invasion. "With our continued assistance, Ukraine can win this war," the US Special Representative stressed.
Secondly, she stressed the vital importance of continuing reforms, in particular for possible EU accession. "Anti-corruption reform remains crucial to attracting the private sector interest needed for a full economic recovery," said Pritzker. She stressed that Ukraine has made significant progress in some areas, but many obstacles remain.
The third element, the US special representative said, is the creation of new support instruments, such as investment risk insurance and marine insurance, which will help economic activity even in the face of a brutal war.
"Fourthly, we need to support the development of the infrastructure needed to expand market access and increase exports. This is where we have the greatest potential for quick wins ... with the best return on investment in terms of increased government revenue and profits," Pritzker said. As an example, she cited the Velyka Odesa ports, which in the short term have helped to increase grain and steel exports from recent averages of 2 million tonnes per month or so to 7-8 million tonnes, which could add $25 billion, or 8% of Ukraine's GDP, and potentially increase tax revenues by $5 billion per year, or almost 10% of the state budget.
The fifth and sixth points were the task of making Russia pay for the serious damage it has caused and the reintegration of Ukrainian refugees and veterans.
"We need to promote these six fundamental elements and educate our business and private sector leaders about the opportunities in Ukraine in six critical sectors: agriculture, technology, defence, critical minerals and metals, energy, and transport and logistics," Pritzker concluded.
