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  • NES-2030: The participants of the discussion determined the priorities for the development of industry, transport and infrastructure
    Communications Department of the Secretariat of the CMU, posted 05 February 2021 11:52

    The development of industry, transport and infrastructure is determined by the vectors of the National Economic Strategy-2030 (NES-2030). These issues were raised during a round table on February 4 dedicated to a broad discussion of the Strategy with the participation of representatives of the Government, experts and the business community.

    According to the Minister of Economic Development, Trade and Agriculture of Ukraine Ihor Petrashko, the state support for the industry is aimed to increase its efficiency and competitiveness. This, in turn, is an important factor for the economy as a whole.

    "The year of 2020 was a period of exceptional trials for Ukraine due to the consequences of COVID-19. The current situation requires a systematic strategic approach targeting to ensure long-term sustainable development. This approach should be the National Economic Strategy-2030, in particular, in terms of supporting the qualitative and quantitative growth of Ukrainian industry," said Ihor Petrashko.

    The priorities set in the NES-2030 for industrial development are to stimulate sustainable domestic demand for products manufactured in Ukraine; strengthen competitiveness; introduce resource- and energy-efficient technologies; encourage new productions and innovative activity; expand product exports.

    According to the Head of the Center for Economic Recovery Kirylo Kryvolap, a number of factors, in particular, the depreciation of fixed assets at 70%, inefficient logistics, low level of innovation, etc., reduce the competitiveness of Ukrainian industrial products.

    "Ukraine is now entering an era of global decarbonization with carbon-intensive industries, in fact twice as bad as in highly developed countries. Recipes for changing the situation are well known: these are incentives for eco-modernization, the direction of environmental taxes for real modernization, adequate tariff policy, stimulating innovative development. All these will significantly increase the competitiveness of existing enterprises," said Kyrylo Kryvolap.

    During the event, Stanyslav Zinchenko, CEO of the GMK Center, emphasized on the preconditions for the development of Ukrainian industrial exports. According to him, currently, Ukrainian industry needs to adapt to global trends: deglobalization, deindustrialization, decarbonization and a new technological transition, in particular, prior the emergence of restrictions by "traditional markets" on the volume of supplies from Ukraine.

    "The number of trade restrictions is increasing on annual basis - now about 37 restrictions apply to Ukraine. The way out of this situation should be the development of trade diplomacy and the conclusion of bilateral trade agreements ... The main opportunities in the field of bilateral agreements are the conclusion of a free trade zone agreement with Turkey, revision of the Association Agreement with the EU, as well as an industrial free visa regime," noted Stanislav Zinchenko.

    In turn, First Deputy Minister for Strategic Industries Valery Ivashchenko said that now it is necessary to carry out transformations in the defense sector of Ukraine in order to create equal opportunities for enterprises of all forms of ownership.

    "It is critical to create equally attractive and protectionist conditions for both private and state-owned enterprises of the defense-industrial complex of Ukraine. We are also talking about the fact that under the new conditions, after the transformation of state-owned enterprises into joint-stock companies, they have the opportunity to increase investment attractiveness," said Valery Ivashchenko.

    Volodymyr Vlasyuk, Director of Ukrpromzovnishekspertyza, spoke about the tools for the development of the processing industry in Ukraine. In particular, it is necessary to increase the processing of local raw materials - agricultural, minerals, wood, clay, ore, etc.

    During the second part of the event, the Head of the Center for Economic Recovery Kyrylo Kryvolap stressed that the development of the transport sector is also a priority included in the National Economic Strategy-2030. NES-2030 identifies priorities for the development of transport and infrastructure: incentives for the modernization of transport and infrastructure; effective and fair regulation; effective management and administration; unlocking of export and transit potential.

    Minister of Infrastructure of Ukraine Vladyslav Kryklii stressed that Ukraine continues to reform railway transport, in particular, in terms of involvement in European integration processes and the development of public-private partnership. The process of unbundling of JSC Ukrzaliznytsia and demonopolization of freight traffic is also underway.

    "This year will be landmark because for 30 years of independence of Ukraine, funding is allocated to upgrade the infrastructure and passenger component. I am talking about almost one hundred new passenger cars - updating of about 5% of rolling stock", Vladislav Kryklii emphasized.

    During the event, President of Ukrmetalurgprom Oleksandr Kalenkov stressed the need to establish a National Transport Regulation Commission (NTRC), which, in his opinion, would help "verify the expenses of Ukrzaliznytsia."

    In turn, the Director of the Center for Transport Strategies Serhii Vovk stressed that times of crisis are the optimal period for stimulating domestic demand through budget infrastructure programs. According to him, if you invest 100 billion hryvnias in road projects, they will return twice as much to the economy of Ukraine.

    According to Taras Boychuk, Head of the Spilno project office, the creation of special railway and aviation funds, which "can become a multiplier for attracting private investment," should help develop the transport industry in Ukraine.

    Vice President of the Professional Association of Ecologists of Ukraine for Sustainable Development Valeria Zaruzhko stressed that the urgent issue for the development of domestic industry is its environmental modernization and determination of optimal standards for emission levels.