Bug fixes

Driven by the passion and determination of a new generation of young, reform-minded leaders, Ukraine since 2014 has undergone a profound transformation emerging from a deep crisis towards macroeconomic stability.

In the past five years, Ukraine has accomplished more reforms than in the previous 28 years combined. It launched unprecedented structural reforms with European Union convergence policies to create a solid platform For sustainable growth in the future .

the society

distance Dignity Revolution , Ukrainians confirmed their desire to live in A free, democratic, Western-oriented, and economically stable country. In fact, they did To amend the Constitution of Ukraine to set a strategic path to obtain Full membership in the European Union and NATO.

anti-Corruption

Establish anti-corruption infrastructure:

• Anti-Corruption Court
• National Anti-Corruption Office
• Anti-Corruption Prosecutor's Office
• National Agency for the Prevention of Corruption
• National Agency of Ukraine for Asset Finding, Tracking and Management

Given the measures taken since 2015 to prevent corruption in the gas market, public procurement, automatic VAT refund and access to data, the Ukrainian Treasury provides around $ 6 billion, or 6% of GDP, annually.

Decentralization

Decentralization reforms introduced by the Ukrainian government began to transform Ukraine's regions, increasing their capacity Competitiveness and investment attractiveness.
As a result, the budgets of local authorities in Ukraine nearly doubled in the four years between 2015 and 2018.
Before decentralization, the economic and administrative control of the country was concentrated in the hands of the central government.
Today, municipalities, cities, and regions bear direct responsibility for their development, with 60% of tax revenue remaining in the localities.

energy

The Ukrainian energy sector has been transformed and liberalized in depth since 2014. The government has canceled the illegal plans, leading to the transition from large budget deficits to healthy profits from the state gas company, Naftogaz. Steps are also being taken to boost Ukraine's domestic energy production and increase gas extraction as part of efforts to reduce the country's dependence on energy supplies from Russia - a dependence that previously made Ukraine particularly vulnerable to extortion by Russia.
In 2018, the government abolished the controversial and opaque mechanism for issuing special permits for the use of the subsoil. Instead, the practice of open auctions has been introduced to grant licenses to extract natural resources, which saves Opportunities Farida To increase oil and gas production in Ukraine.

The banking sector

In 2014, the National Bank of Ukraine (NBU) began a massive campaign to “cleanse” the banking sector, as a result of which more than 100 banks were closed. The results are already visible - in 2019 Achieved Ukrainian banks Combined profit of $ 2.3 billion It is a historic level for the sector.

Currency editing

New currency law It entered into force in Ukraine, marking the start of the most fundamental reform of currency systems in more than a quarter of a century.

The new rules continue in the direction of the Ukrainian central bank towards currency liberalization that included simplification of opening, use and closing of accounts, and changes in procedures for obtaining loans from non-residents.

In the recent wave of currency liberalization, the Ukrainian Central Bank removed the requirement for the mandatory sale of foreign exchange income and all restrictions on the redistribution of profits.

Lifting restrictions and making it easier to do business improvement

An ambitious regulatory deregulation program was launched in 2014 aimed at achieving regulatory compliance and convergence with European Union standards and global best practices. The reforms have positively affected the business environment in key sectors, including agriculture, telecommunications, infrastructure, construction, and taxation, in addition to government customs procedures, health and veterinary controls.

Regular quarterly meetings to lift government restrictions, including often involving input from the private sector, have resulted in the cancellation of more than 1,300 outdated regulations.

Major Organizational Reform Achievements:

• Tax Administration Reform (Refund System Automatic value-added tax Electronic locker for tax administration, etc.)
• Simplified procedures for opening and operating Representative offices of foreign companies
• Simplify customs clearance procedures For cargo in sea and river ports
• Launch transparent electronic sales For special permits for oil and gas extraction
• Open access to geological information
• Risk based approach For state supervision of business
• Modern building rules New
• Reducing port fees by 20% As of 2018

Privatization and management of state-owned enterprises (SOEs)

There are more than 3,600 state-owned enterprises that are mostly losing money in Ukraine. 40% of these companies are inactive and only operate on paper. Every third institution incurred a loss and is a potential source of financial risk. The operations of SOEs are a source of corruption risks and cause losses in the state budget due to the lack of quality control mechanisms and insufficient transparency.

Reform of SOEs includes introducing transparent corporate governance in strategic SOEs and privatizing all other companies.

privatization

In 2018, the Verkhovna Rada of Ukraine adopted a new privatization bill. The law divides companies into three categories: those to be privatized, liquidated, or retained. The new law replaces many often contradictory regulations, cuts the schedule for privatization, and makes Prozorro's online system mandatory for the privatization of small state-owned enterprises.

Corporate governance

The modern SOE governance model includes introducing OECD-compatible corporate governance tools, including strategic planning, having the government as shareholder agree on ownership policies for each institution, and competitive appointment of independent supervisory boards.

The government has already approved independent professional oversight boards in a number of strategic SOEs, including:

• Naftogaz (state gas company)
• Ukrzaliznytsia (Ukrainian Railways)
• Ukrposhta (Post Office)
• Ukrenergo (Power Network Operator)

Land market reform

After nearly 20 years of the old moratorium on the sale of agricultural land, the land market in Ukraine will finally be launched. Ukraine has abolished the moratorium on agricultural land and the opening of the agricultural land market starts from July 1, 2021 . 

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Liberation of the space sector

Ukraine is one of the few countries with a full-cycle capacity for design, production and operation of civil and military aircraft and aircraft shipment, as well as space technology. The Verkhovna Rada of Ukraine passed Law No. 1071 amending some laws of Ukraine involving the development of activities in space and the attraction of investments. The bill brings competition to the sector by allowing private companies to participate in space-related activities, including rocket launches.