US billionaire not afraid to invest in Ukraine
Ukraine is not only the granary of Europe, but a diamond in the rough, Henry Berger, US billionaire and industrialist, declared at a recent press conference. He owns gold fields in Nevada, his own film studio, and a number of other companies. He made this statement to let the world public know he had decided to start on several big-time investment projects in Ukraine, stressing that this country is good and safe to invest in.
Obviously an eccentric approach, considering the grim realities on the Ukrainian investment market. Borys Tymonkin, president of Ukrsotsbank, told The Day earlier, “There are simply no long-term credit prospects today because of high risks, unpredictable currency stability, creditors being totally unprotected by the law, and the absence of the land market and effective financial instruments [the latter obviously due to the current taxation and regulatory legislation — Ed.] He is confirmed by official statistics: the world free investment market is $120-140 billion to date. Some 70% has over the past several years been actively invested n Southeast Asian countries, with Russia sharing 1% and Ukraine even less. Over the decade of independence Ukraine has received $3.9 billion worth of foreign direct investment. Experts with the Independent Political Studies Center believe the sum could have well ranged from 40 to 50 billion dollars, with 5-8 billion annually. Volodymyr Barabash, General Director of Monomakh Ltd., attributes the “shortage” to the state failing to work out an adequate administrative-regulatory component of the national investment policy.
Mr. Berger plans to invest (for a start) some $500 million in the infrastructure of gas and service stations in the vicinity of Kyiv, hotel construction projects (in his words, one will be located in the heart of the city), possibly in technoparks, farmers’ credit funds, and so on. Well, perhaps this is not as adventuresome as it seems; perhaps the man wants not so much to play the Russian roulette in Ukrainian domestic business as practically test his belief in this country’s happier future by exposing his projects to so much risk. Interestingly, Mr. Berger assumes that Western investors loath to do business in Ukraine are influenced by negative Western media coverage.
The US billionaire claims to be indifferent to politics and his belief in Ukraine’s investment opportunities is not likely the result of his falling in love with this country at first sight (lots of pretty girls, well-educated young people, etc.). More likely, this enthusiasm is explained by his meeting with the Ukrainian president. At least it seems so to us, and we can promise that if he really takes the risk he will have enough resources to back his ventures. It all depends on who makes the final decision.
