On peculiarities of involving German business

The two-day visit of Arsenii Yatseniuk, prime minister of Ukraine, to Berlin, and his subsequent talks with German leadership and business led to an unusual result. In addition to signing a memorandum of cooperation between the governments of Ukraine and Germany and agreement upon a loan of 500 million euro, the leaders have exchanged… conferences.

On the one hand, at a joint press conference with Angela Merkel, Chancellor of Germany, in Berlin, Yatseniuk has announced an international conference on supporting the reforms in Ukraine. On this conference, which will take place on April 28 in Kyiv, the government will present its next steps on development of the country.

On this matter, Yatseniuk has written on his Facebook page: “We will report on reforms in Ukraine. Some of them were hard, but it was a right decision nevertheless. Our international partners must see that Ukraine has changed; they must see our new approach, the rules we now share with the whole European world – the rules, which will allow us to attract investments and will show how we finally started to eradicate corruption, to relax the taxation burden, to enforce the fiscal and tax discipline. Ukraine is gradually moving towards EU not only on paper, but through real action, including the adoption and enforcement of laws.”

On the other hand, Merkel, jointly with representatives of German business, initiated an investment conference in Berlin. The Chancellor told the press she saw “significant reformist steps” performed in Ukraine, and noted that the Minsk agreement is not fully met. She indicated that the reforms increase the likelihood of foreign investments in Ukrainian economy. Also, Merkel promised further German assistance in the process of economic and political transformation of Ukraine.

Recently, in his speech to the German Committee on Eastern European Economic Relations Yatseniuk called for further investments in Ukraine. “We invite German business to partake in this program, as 200 million euro will go directly to the budget, but another 300 million will be spent on infrastructure and economic projects,” he said. According to the prime minister, the main deterrent of foreign investments in Ukraine is the risk related to Russian aggression.

 “FIRST OF ALL, IT IS CRUCIAL THAT MINSK-2 IS FULFILLED”

Dr. Rainer LINDNER, Executive Director of the Committee on Eastern European Economic Relations, Berlin:

“Yatseniuk’s visit was very important, as it occurred during the difficult economic situation in Ukraine. The main purpose of this visit was not only to meet the political leadership of Germany, but primarily to speak with the representatives of German business, who are interested on how the economic situation in Ukraine will develop.

“Given the severe investment crisis raging in Ukraine, the Kyiv International conference on supporting the reforms on April 28 is essential. Equally important is the Investment forum in Berlin, initiated by Merkel with the endorsement of German business.

“We are happy that Yatseniuk favorably reacted to the offer by Federal government and German business. The forum is scheduled to take place in Berlin in the early July, and in the autumn, probably, again in Kyiv.

“The purpose of the investment forum is to make all the investors, including the German business persons, acquainted with the reform plans of Ukrainian government and the related opportunities here in Germany.

“Certainly, the investment climate in Ukraine is heavily affected by political circumstances, especially the crisis in the East. German business expects full commitment to Minsk agreement. And only when the fire truly ceases, the investors will begin to consider the possibilities of bringing money to Ukraine. First of all, it is crucial that Minsk-2 is fulfilled. Only with this we will be able to talk of new investments; and only then we can be sure that companies working in Ukraine will remain there.”