Business climate is steadily improving in the post-Soviet countries

A number of efforts to improve a business climate is currently observed in the post-Soviet countries. The related tendencies are covered by the world’s leading business news organizations.

Thus, the Financial Times has recently recognized Ukraine as the No. 1 worldwide in improving business climate. It was also stressed that the business climate in the country is steadily improving, despite remaining concerns over the oligarchic impact on business’ development and political sphere of the country. According to the source, the relevant results will positively affect business image of Ukraine. At the same time, it doesn’t exclude the main problems that the country continues to face when attracting international investment. The recent meeting of the Minister of Foreign Affairs of Ukraine Pavlo Klimkin with German Foreign Minister Sigmar Gabriel is also noteworthy. On January 3, Pavlo Klimkin said that German companies created at least 2000 jobs in Ukraine in 2017 according to the approximate calculations. He added that German automobile industry alone has created more than 30 000 jobs in total.

On January 3, President of Ukraine Petro Poroshenko signed a law that simplifies rules for doing business and raising investment by issuers of securities. The law envisages that a stock exchange listing is the only criteria for a company’s publicity. According to the President’s press service, it’s aimed at solving the problem of dividing Ukraine’s joint-stock companies into public and private ones on formal grounds, as well as eliminates imbalances in legislation and introduces European principles in the regulation and definition of public companies. The law also expands the scope of information for public banks and joint-stock companies, as well as ways of its disclosure, while the publication of this information in an official issue is no longer required. A document envisages a reduction in the scope of information subject to disclosure by private joint-stock companies. In addition, individuals are allowed to provide information services on the stock market along with the National Commission on securities and stock market and its agencies.

The development of business in the post-Soviet countries continues to be supported by the European Union. As part of the EU4Business initiative, the European Bank for Reconstruction and Development is providing an additional 20 million euro loan to one of Moldova’s banks in order to meet growing demand for finance from local businesses that are investing in improving the quality of their products and services. The EU and the EBRD are collaborating to expand access to finance for businesses willing to take advantage of opportunities created by the Deep and Comprehensive Free Trade Area.

A number of significant improvements in the business climate of post-Soviet countries has been clearly observed. In particular, legislation amendment is being recognized as one of the key factors for further business development. However, there’s still much more to be done.