Introduction to the Seminar:
Market Opportunities in the
Water Sector in Ukraine
Rotterdam, 18 November 2014
Anneloes Viveen
[email protected]
Economic Potential of Ukraine
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The latest (economic) developments in Ukraine
Impact on business climate and future outlook
The consequences of the DCFTA for Dutch companies
What can the Embassy do for you?
There are and will be (economic) challenges
- Attack on the territorial integrity of Ukraine in Crimea and Donbas
- Current economic recession with growing budget deficit and strong
depreciation of hryvna
- Loss of one of the main trading partners: Russia (30%<< export)
- Slow improvement of business and investment climate, shadow
economy, level playing field in certain sectors and implementation of
anti-corruption package
- Economic outlook for the short-term is not too promising
However Ukraine ≠ Donbass
• Donbass = Donetsk and Luhansk. Prior home to 15% of Ukraine’s
population of 45 million
• Contributed 16% to the nation’s GDP, but its economy is heavily subsidised
• Impact on current crisis: more than 400.000 IDPs, 60% of enterprises in
Donbass are not working, lack of coal which affects the electricity
production, industrial output decreased by 21%.
At the same time many positive changes
+ Nov-Feb: Maidan of Dignity
+ Feb-Oct: United coalition government which started to work on the reform
agenda
+ May, Oct: Free and fair Presidential and Parliamentary Elections
+ Elections outcome: clear choice from the UA people for the EU-oriented reform
government
+ Jun, Sept: Signing and ratifying of the Association Agreement including
DCFTA, basis for the reform agenda
+ Increased export to the EU by 25 % in 2014
+ Agricultural output grew by 16 % in 2014
+ Increasing support from IFI’s and donors to support the reform agenda
+ Doing business ranking improvement to 96 from 112, Oct 2014
+ Doing nothing is no longer an option (IMF and EU conditionality)
+ Finally time to make use of Ukraine’s huge potential
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Strong Dutch-Ukrainian economic relations
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Export from Ukraine to the NL has grown by 38% in the 1st half of 2014
3rd foreign direct investor into Ukraine (5349,9 million USD, 2014)
NL top 10 EU-importer and exporter to and from Ukraine.
Export from Ukraine mainly grains, ferrous metals, fats and oil (seeds).
Import to Ukraine mainly equipment (boilers, engines, etc.), vehicles
(second hand), plastic/polymers, pharmaceuticals and pearls/jewellery
• Around 250 Dutch companies remain active in Ukraine in the following
sectors agrifood, horticulture, energy (efficiency, sustainability, biomass),
logistics (transport and infrastructure), water (filtration and sanitation), high
tech (IT), retail, construction and services (banking, engineering,
consultancy, accounting)
What is going to change for Dutch
Companies under the DCFTA?
• Comprehensive reform program for Ukraine to align its business laws and
procedure with the EU over a period of 10 years
• Elimination of import and export duties between the EU - UA
• Gradual alignment of UA requirements to EU regulations and procedures
• Gradual alignment of sanitary and phytosanitary measures
• Expansion of trade in services
• Applying of EU public procurement regulations. Opening UA government
tenders for EU business and vice versa.
• Aligning many more procedures and regulations in the field of safeguards,
intellectual property, trade facilitation, competition policy, movement of
capital, transparency and sustainable development.
What does the Embassy offer?
• Providing information and advice to enter the market
• Trade assistance to Dutch entrepreneurs already active
• Offering networking opportunities and entries to government, IFI’s, etc.
(example: two-annually trade missions, joint exhibition participation)
• Stimulating a sustainable improvement of the international business climate
• Support with specific governmental economic support programs e.g.: PIB,
PfW, subsidy for advice feasibility studies and demonstration projects, PUM
and Zakenpartnerscan
• Orange Carpet for business visa
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Questions?