Ukraine - a Low Risk Business Environment?

Ukraine has contradictory, complex and frequently changing business laws making it very difficult for investors to develop reliable business plans. This creates uncertainty and creates an unwelcoming and high risk investment environment.

Official fees are not very high but unofficial cash payments are very large and cannot be explained in the accounts of legitimate investors and businesses. Linked to this uncertainty about business costs is the feeling that a business project can be stopped indefinitely by an excessively greedy official (using contradictory law) who refuses a service unless an extortionate payment is made.

The time it takes to complete business deals in Ukraine is significantly longer than other countries due to the steps that are required by law and an extremely disorganized, technologically unconnected and very slow bureaucratic system.

A reduction in steps is necessary and will reduce time and costs. It would be helpful if officials consider ways to centralize permit issuing offices in one regional building and using a connected computerized system. This will significantly reduce the process time and costs as there will be less opportunity to demand cash payments.

A reliable system allows businessmen to make more reliable business plans. This is an immediate encouragement to consider business opportunities in Ukraine. These changes can be paid for by higher official business charges.  

Ukraine is a great country, with highly educated people. The future can be as good as the Ukrainian people organize and work for it to be. Do what you can to help Ukraine develop a Low Risk Business Environment.A safer business environment means more business. This means more tax. This means, in time, better health care, better care for the poorer people in society, better roads and a better quality of life for ALL of the Ukrainian people. This is a future worth working towards.

Economic Challenge for Ukraine based on World Bank Report 2011

Each year the World Bank publishes a report which looks at how easy it is to do business in the main economies of the world. Their approach is to analyze ease of business in three categories, Steps, Time and Cost. The 2011 results show Ukraine in 145th place in the World.

Steps - The number of things you have to do to make your business work.


Time - The average time it takes to take the steps required by local law.


Cost - What does it cost to take these steps (including unofficial cash payments ordered by officials).

Analysis - When compared with other countries, Ukraine does very badly.

Ukraine has very complex and often contradictory business laws.
The Steps, Time and Cost of doing business are unattractive to foreign investors.
What takes a few months to do in America takes many years to do in Ukraine.
Officials looking for money can use their positions to stop your business at any time.

Patrick's suggestions to make business in Ukraine more attractive

- Less complicated and contradictory business laws will make the business process more clear.
- Less Steps will save time and give officials less chances to stop business until they get 'tips'.
- Centralize permit issuing offices to save time, speed up business and reduce corruption.
- The Official cost is not very high but officials do want very large private cash 'tips'. Reduce corruption opportunities.


Who can do this? Only Government can change these laws and Steps towards Increased investment and honest business.

Why should Government make it easier to do business in Ukraine? More business will help develop the Ukrainian Economy. This will mean more tax income for the Government. This also means more and better paid jobs for Ukrainian people. The extra tax money mean higher wages, better pensions, improves roads and a more secure life.


When should these changes be made? The faster these changes are made the faster the Ukrainian Economy will grow and the faster life will become better for the Ukrainian people.

What about people who don't want to change? Think about your children, your country and join with the heroes of the past to something good to help your country develop and take her place with the respected nations of the world.

Will it be easy? Change for the better needs people to believe and to work together to make Ukraine a better place for all. No important change is easy but every person who helps make that change is a hero to their country and their family.

The Future! Ukraine is a young country with great people and the possibility of a great future. With the help of God and your personal effort.....this WILL work. Do what you can to Make it happen! Take a step to a better future and a better life.

What can I do? Pray for Ukraine. Do what you can to make life better for your family, your region and your Country. Explain (peacefully) to any politician or official you know that a reduction in Steps, Time and Cost will help increase business and will help all the people of Ukraine. Pass this idea to people who can use it to help Ukraine.

Set a Target! I would like to see Ukraine be in the top 50 countries of the world within 10 years.

This is a link to the World Bank Report. 2011 will show Ukraine is in 145th place in the World for doing Business.

Ukraine can do much better than 145th in the World!