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Chief Executive Officer of PJSC ArcelorMittal Kryvyi Rih Paramjit Kahlon mentioned the main reasons affecting investment climate in Ukraine
Chief Executive Officer of PJSC ArcelorMittal Kryvyi Rih and member of the Board of European Business Association (EBA) Paramjit Kahlon mentioned five main challenges foreign investors face with in Ukraine in his opinion.
First thing required for stable performance of big international companies is investor-friendly attitude within the whole period of their activity. They should not be remembered only at the time of buying the assets and investing money - they require continuous support.
Second thing is labour legislation reform. Ukraine had to reform labour legislation yet yesterday, and if not yesterday then today. But in no case to delay it till tomorrow. If there are no positive changes in this law area, Ukraine will not be able to build market relationships between the employers and employees based on the example of other countries.
Third challenge is a continuing outflow of high-skilled, competent specialists from Ukraine to the other countries, first of all to Poland. Ukraine loses more and more work force because of that - it becomes one of the key issues not only for the country in general, but also for many businesses located in its territory. Based on the example of our plant we see that we have to hire more people to substitute the skilled employees.
The fourth condition for stable performance of investors is improvement of tax legislation. Government of Ukraine says that changes in the area of taxation will positively influence small and medium-size businesses - and we support such changes for the better. But besides that, there are many issues in the area of taxation that have to be resolved. It particulars, this is about the tax on withdrawn capital and the tax policy of land plots rent. Local authorities in Kryvyi Rih increase land rent payment in may times - and it cannot be considered as a nice attitude to investors.
And finally, the fifth challenge we face with is continuous intervention of different inspections, services and authorities. And today, with the oncoming elections, the officials become many time more active, there is an increase of their negative influence on the businesses.
Besides, Chief Executive Officer of PJSC ArcelorMittal Kryvyi Rih also brought the attention of the audience to the problems in the infrastructure industries, first of all to the problem with cargo railway logistics. This topic is a matter of concern for many big industrial companies, including mining and metallurgical plants. Ukrainian economy will not be able to maintain the required growing tempo without resolving of the infrastructure problems, Paramjit Kahlon noted.
- Actually Ukraine has entered the pre-election phase nowadays, and it makes investors revise their expectations towards more pessimistic assessment of the working conditions for business in the country. At the same time we hope that reforms will continue, and the positive changes will lead to significant improvement of investment climate in the country with the flow of time, - Chief Executive Officer of PJSC ArcelorMittal Kryvyi Rih Paramjit Kahlon summarized.
Reference:
European Business Association uniting about 900 European, Ukrainian and international companies is a leading international business institution in Ukraine. The EBA Investment Index results demonstrate that the following actions are needed to improve the investment climate for business, namely: launch of the Anti-corruption court, judicial reform, land market reform, reduction of tax pressure on the salary fund, deregulation of the economy and so on.
First thing required for stable performance of big international companies is investor-friendly attitude within the whole period of their activity. They should not be remembered only at the time of buying the assets and investing money - they require continuous support.
Second thing is labour legislation reform. Ukraine had to reform labour legislation yet yesterday, and if not yesterday then today. But in no case to delay it till tomorrow. If there are no positive changes in this law area, Ukraine will not be able to build market relationships between the employers and employees based on the example of other countries.
Third challenge is a continuing outflow of high-skilled, competent specialists from Ukraine to the other countries, first of all to Poland. Ukraine loses more and more work force because of that - it becomes one of the key issues not only for the country in general, but also for many businesses located in its territory. Based on the example of our plant we see that we have to hire more people to substitute the skilled employees.
The fourth condition for stable performance of investors is improvement of tax legislation. Government of Ukraine says that changes in the area of taxation will positively influence small and medium-size businesses - and we support such changes for the better. But besides that, there are many issues in the area of taxation that have to be resolved. It particulars, this is about the tax on withdrawn capital and the tax policy of land plots rent. Local authorities in Kryvyi Rih increase land rent payment in may times - and it cannot be considered as a nice attitude to investors.
And finally, the fifth challenge we face with is continuous intervention of different inspections, services and authorities. And today, with the oncoming elections, the officials become many time more active, there is an increase of their negative influence on the businesses.
Besides, Chief Executive Officer of PJSC ArcelorMittal Kryvyi Rih also brought the attention of the audience to the problems in the infrastructure industries, first of all to the problem with cargo railway logistics. This topic is a matter of concern for many big industrial companies, including mining and metallurgical plants. Ukrainian economy will not be able to maintain the required growing tempo without resolving of the infrastructure problems, Paramjit Kahlon noted.
- Actually Ukraine has entered the pre-election phase nowadays, and it makes investors revise their expectations towards more pessimistic assessment of the working conditions for business in the country. At the same time we hope that reforms will continue, and the positive changes will lead to significant improvement of investment climate in the country with the flow of time, - Chief Executive Officer of PJSC ArcelorMittal Kryvyi Rih Paramjit Kahlon summarized.
Reference:
European Business Association uniting about 900 European, Ukrainian and international companies is a leading international business institution in Ukraine. The EBA Investment Index results demonstrate that the following actions are needed to improve the investment climate for business, namely: launch of the Anti-corruption court, judicial reform, land market reform, reduction of tax pressure on the salary fund, deregulation of the economy and so on.
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ArcelorMittal Kryvyi Rih PAT published this content on 21 September 2018 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 21 September 2018 11:13:05 UTC
