Prime Minister: Building up a capital market is one of the key steps to developing a successful Ukraine

Creating favorable conditions for the functioning of the financial capital market is one of the key steps on the path of building a successful Ukraine. Prime Minister Denys Shmyhal stated during a regular meeting of the Government on January 20.

The Prime Minister noted that the capital market is what distinguishes successful countries, hence the Government sees its creation as one of its priorities.

"Building up a capital market will also mean additional financial instruments for both domestic and foreign investors," the Head of Government said.

During the meeting, the Chairman of the National Commission on Securities and Stock Market Timur Khromayev presented a draft memorandum between the Government of Ukraine, USAID and the European Bank for Reconstruction and Development on the establishment of the Ukrainian International Financial Center.

The Prime Minister instructed the Ministry of Foreign Affairs, the Ministry of Finance, and the Ministry of Justice, together with the National Commission on Securities and Stock Market, to draft the memorandum as soon as possible and submit it to the Cabinet of Ministers for consideration.

Among the promising tools for attracting investment, according to Denys Shmyhal, is also a mechanism of public-private partnership. At the meeting, the Cabinet of Ministers supported the bill on the settlement of budgetary relations during the implementation of agreements concluded within the framework of public-private partnership, in particular concession agreements.

"The bill is designed to provide the state partner with the right to make long-term commitments for the implementation of public-private partnership agreements, as well as the establishment of a state fund for the preparation of public-private partnership projects," said the Prime Minister.

The Head of Government stressed that the document improves the procedures of interaction between the state and a private partner and makes them more comfortable and understandable for the investor. Previous work to improve the regulatory framework, he added, has already allowed Ukraine to attract almost UAH 4 billion in investments from the first concession agreements.

In addition, the Government approved a bill proposing to introduce in Ukraine a system for assessing the impact of foreign investment on national security. In particular, activities that are of strategic importance for national security, the procedure for assessing the impact of foreign investment in enterprises in the strategic sphere will be determined.

"The issue of investment attractiveness of the country and attracting foreign capital is among the priorities in our Government’s strategy. Nevertheless, the public policy comes first, so the Government must defend them in the process of leveraging private capital," said Denys Shmyhal.

The Prime Minister stressed that investments should provide benefit and meet the national interests of the state.