EBRD Adopts Ukrainian Strategy

On September 3 the meeting of the Board of Directors of the EBRD adopted a new Ukraine Country Strategy for the period until 2004, informed EBRD Executive Director for Ukraine Yury Poluneyev. The new strategy reflects EBRD’s approach at the current stage, when major attention is focused on seeking and implementing projects in the private sector involving both foreign and domestic investors. The document defines priority directions for EBRD’s further work in Ukraine, among which are projects connected with infrastructure, in part, in the transportation sphere, including oil and gas transport, and in the sphere of municipal water and heat supply; projects in energy conservation, and implementing programs aimed at financing small and medium businesses. Other important directions are financing projects in the agricultural sector, strengthening the bank system, and developing non-bank financial institutions (mortgage, leasing, insurance, etc.).

Significant attention was also paid by EBRD stockholders to a number of problems. First, international investors are concerned with the investment climate in Ukraine, corruption, lack of transparency, and weak corporate management. The Board of Directors also believes that the positive dynamics attained by Ukraine during the last two years should be transformed into a fundamental improvement in its social situation. In this context the EBRD leadership was interested in the information on the presidential initiative regarding constitutional changes in our country’s political system. The new EBRD strategy toward Ukraine and the ways for its effective implementation will be among major topics for discussion with Ukraine’s leaders during EBRD President Jean Lemierre’s first official visit to this country scheduled for mid-October.