Oksana SLYUSARENKO

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• Oksana SLYUSARENKO
• Deputy Head of the Secretariat of the President
  of Ukraine
  Representative of the
  President in the Parliament of Ukraine

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Ukraine -country with great and unrealized
potential
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• Rapid development of Ukraine is defined by the
  development of the private sector, FDI inflow,
  growth in demand and better trade conditions

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2007 has become another year of considerable
economic growth for Ukraine
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Ukraine a brief survey

• Population 46,490m people
• Territory 603,7 thousand sq. km
• 1 USD approx. 4.85 UAH
• GDP (USD billions), 2007 131.2
• GDP (PPP, USD) per capita 6,309.8
• GDP (USD) per capita, 2007 2,829.7
• GDP (PPP,USD) as share of world total (), 2007
  0,53
• Global Competitiveness Index 2007-2008 (rank out
  of 131) 73

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A bit of Context for Ukraine the
recovery 1999-2007

• Overall macro stability 1999-2007
• Benign external environment
• Property (particularly profit) rights improved
• Access to finance and credit boom
• Underutilized industrial capacity allowed output
  growth with small new investments
• Limited competition and big returns have
  attracted investors

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Ukraine Today
6.2
GDP Industrial Output Gross
Agricultural Output Retail Turnover of
Goods Real State Budget Revenues (January-March
2008) Real Disposable Incomes of Population
(January-March
2008) Consumer Price Index (April 2008 to
December 2007) Hryvnia depreciated to USD (May,
1) Natural Persons Deposits (April, 1)
?
8.0
?
January-April 2008 cumulative since the
beginning of the year versus previous period
0.1

?
29.0
?
13.8
?

19.8
?
13.1
?
April since the beginning of the 2008
0
9.6
?
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Indexes of transitional period in Ukraine in
2007 in points
?? arrows indicate change from the previous
year in that sectorial transition indicator. One
arrow indicates a movement of one point (for
example, from 2 to 2). Up arrows indicate
upgrades, down arrows downgrades.
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Foreign capital in banking system of Ukraine
01.04.08
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EURO 2012
Goals and tasks of the Program of preparation to
EURO 2012 require drastic structural and
institutional changes and new forms of cooperation

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• The championship will be held in
• Kyiv, Dnepropetrovsk,
• Donetsk, Lviv,
• and in Kharkiv and Odessa
• as reserve cities

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Kyiv

• Kyiv is the biggest contributor to Ukraines
  economy. Its gross regional
  product (GRP) amounts to some 18 of Ukraines
  total GDP.
• The Kyiv region has a diversified industrial base
  including aviation, shipbuilding, IT, chemicals,
  pharmaceuticals.
• Kyiv takes an important place in the national
  economy
• almost 32,2 of investments in the fixed capital
  and around 31,5 of the direct foreign
  investments are concentrated in Kyiv city
• Kyiv accounts over 36 of Ukrainian import of
  goods and services
• over 12 of export of goods and services
• there are two thirds of national banking assets
  in the capital
• sixth part of retail trade of the state is
  concentrated in Kyiv
• highly developed engineering transportation
  network
• powerful building system.

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Dnipropetrovsk

• The Dnipropetrovsk region is a best performer in
  Ukraine on infrastructure development, higher
  education and training, labor markets efficiency
  and innovation.
• Technological readiness is average, but low FDI
  levels hinder technology transfer.
• The Dnipropetrovsk region is one of the
  wealthiest and most industrialized regions in
  Ukraine.
• It is characterized by a well-developed basic
  industry, mainly in iron and steel production,
  but also in engineering and construction of
  electromechanical machines, as well as the
  automotive, chemicals and agricultural sectors.
• With its GRP per capita of UAH 11,909, it
  accounts for 9.3 of Ukrainian GDP, but only for
  7.3 of the countrys population. In 2006,
  Dnipropetrovsk accounted for 18.6 of Ukraines
  total exports and after Donetsk is the second
  largest exporter in Ukraine.

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Donetsk

• The Donetsk region is high quality institutions
  and infrastructure development.
• Financial markets are relatively sophisticated,
  but technological readiness is fairly low.
• In terms of economic size, with GRP of UAH 58
  billion, Donetsk is the second largest regional
  administrative unit in Ukraine behind the city of
  Kyiv.
• It represents some 13 of Ukraines economy,
  compared to 17 for Kyiv. The regions economy is
  mainly structured around coal extraction,
  metallurgy and machine building industries. Other
  branches include chemical industry, power
  generation, and consumer goods.
• It is the most populated region in Ukraine.
• The region has one of the most developed
  financial markets in Ukraine.

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Lviv

• Lviv ranks first nationally in terms of
  macroeconomic stability and second for the
  quality of its higher education system.
• Its boasts an above-average institutional
  framework, and business sophistication and
  innovation capacity is higher than the rest of
  the country. Regions GDP accounts for 3,9 of
  Ukrainian GDP.
• The local economy is structured around mechanical
  engineering, the petro-chemical industry,
  construction materials, cellulose paper and
  printing industries, as well as food processing.
• The proximity to the European Union provides the
  regions relatively better ability to adopt
  technology from abroad.
• The latest technologies are more available, firms
  absorb foreign technologies more easily than in
  other regions. The large amount of FDI has
  poured into car manufacturing plants of the
  region. Thanks to the developed education system,
  region is more innovative than the national
  average.

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Odesa

• Odesa is an important transport, industrial,
  scientific, cultural and resort center with the
  population more than 1 mln people and every year
  more than 1 mln. tourists visit Odesa.
• Odesa seaport is one of the biggest ports of the
  Black Sea basin. Its berths allows to take
  freight ships with tonnage up to 100 thousand
  tons.
• 75 of the whole state industrial potential
  situated in Odessa region and consists of 7
  ports
• Port of Odessa
• Port of Yuzhniy
• Port of Illichivsk
• Port of Reni
• Port of Izmail
• Port of Ust-Dunay
• Port of Belgorod- Dnestrovsk and also dockyards
  and shipbuilding plants
• Companies of petrochemical and machine building
  industries, repair and assembly of machines,
  metallurgy and metal working, chemical and
  petroleum chemical sectors, food, light, and
  other industries are available in the territory
  of the region

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Kharkiv

• The Kharkiv region retains a convenient transport
  and geographical position at the crossing of
  international ways "North-South" and "West-East".
  
• The Kharkiv region leads the way in the
  mechanical engineering industry of Ukraine.
• There, a powerful tractor-building complex has
  been formed. The production of power equipment,
  aircraft construction, machine tool construction,
  fuel, electronic, chemical, pharmaceutical, food,
  and light industries are of great importance.
• As regards scientific and scientific-and-technolog
  ical organizations, the Kharkiv region is the
  second-largest one after Kyiv and the largest
  region in Ukraine.
• There 56 of RD facilities of Ukraine are
  concentrated.
• A stock market infrastructure is actively
  developing in region. There has been formed the
  market infrastructure capable of securing the
  development of business.

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• National Program on Preparing and Conducting of a
  Final Tournament of European Football
  Championship 2012 in Ukraine
• 21 tasks, based on the UEFA requirements and
  corresponding government guarantees.
• General Budget of the Program is estimated
  around 16,85 billion EUR (126,4 UAH), of which
• 2,85 billion EUR (21,4 billion UAH) from the
  State Budget of Ukraine (16,9 of general
  budget)
• 1,65 billion EUR (12,4 billion UAH) funds from
  local budgets (9,8)
• 12,35 billion EUR (92,6 billion UAH, 73,3)
  from other sources (investors, private funds
  etc).

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Sport objects
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Sport objects

• Sport infrastructure in total
• 1211.64 mln EUR (7.2 of
  general program financing) including
• State budget 269.09 mln
  EUR
• Local budget 13.46 mln
  EUR
• Other sources (investors)
  929.08 mln EUR

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Transport Infrastructure

• Construction, reconstruction and repair of the
  airports 
• Developing 13 airports
• Boryspil International Airport Kyiv
  Zhuliany International Airport
• Gostomel Airport
  Lviv Airport
• Dnipropetrovsk Airport
  Donetsk Airport
• Odesa Airport
  Kharkiv Airport
• Zaporizzhia Airport
  Luhansk Airport
• Mariupol Airport
  Ivano-Frankivsk Airport
• Mykolayiv Airport
• Estimated expenditures
• Total 1262.4 mln EUR (7.5 program amount)
  including
• State budget 321.77 mln EUR
• Local budget 5.15 mln EUR
• Other sources (investors) 935.48 mln EUR

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Transport Infrastructure
Construction, reconstruction and repair of the
railways Construction of the railway-automobile
bridge link across the Dniper river in Kyiv.
Finishing the construction of passenger terminal
complex at the Darnitsa station
(Kyiv). Reconstruction of the parking place for
the tourist trains at the station
Kyiv-Dniprovskyy (Kyiv). Construction of new
suburban passenger terminal at the Station
Donetsk. Introducing high-speed trains (334km/h)
at the Ukrainian railways. Construction of the
technical station, reconstruction of 12
depot. Purchasing of 7 special high-speed
trains.  Estimated expenditures Total 1836.93
mln EUR (10.9 program amount) including State
budget 0.0 million EUR Local budget 0.0
million EUR Other sources (own funds of
Ukrzaliznytsia) 1836.93 mln EUR

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Transport Infrastructure

Construction, reconstruction and repair of the
motorway of general usage in accordance with
European Standards (intercity communication)
Construction of 4204.4 km. roads with the
improved transport and exploitation
conditions Estimated expenditures Total
5006.27 mln EUR ( 29,7 program
amount) including State budget 1206.22 mln EUR
Local budget 0.0 million EUR Other sources
(investors) 3800.05 mln EUR
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Transport Infrastructure

• Transport infrastructure (intercity connection)
• 8105.6 mln EUR
• (48.1 general financing of the program)
  including
• State budget 1527.99 mln EUR
• Local budget 5.15 mln EUR
• Other sources
• 6572.47 mln EUR

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Accommodation
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Accommodation

• Total estimated expenditure
• 3581.24 mln EUR
• (21.3 of program budget) including
• State budget
  80 mln EUR
• Local budget
  0.0 million EUR
• Other sources (investors) 3500.57 mln EUR

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Other tasks

• Total Safety and Security
• 267.4 mln EUR (1.6 of general program budget)
• State budget 244.2 mln EUR
• Local budget 12.4 mln EUR
• Other sources 10.8 mln EUR

• Total Energy Supply
• 603.15 mln EUR (3.6 of program budget)
• State budget 46.32 mln EUR
• Local budget 35.23 mln EUR
• Other sources (investors) 521.61 mln EUR

• Total Other Domains
• 2558.12 mln EUR (15.2 of program budget)
• State budget 535.64 mln EUR
• Local budget 1292.08 mln EUR
• Other sources (investors) 730.39 mln EUR

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Principal forms of investing in Ukraine

• Incorporation/Establishment of new enterprises
• Participation in already existing enterprises
  (acquisition of shares)
• Acquisition of research and engineering,
  including houses, apartments, premises,
  equipment, means of transport and other objects
  of ownership, by way of direct acceptance of
  property and property complexes or in form of
  shares, bonds and other securities
• Acquisition of the rights to use land and use of
  natural resources of Ukraine
• Economic (entrepreneurial) activity under the
  share-production agreements
• Other forms not prohibited by Ukrainian
  legislation

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Conclusions

• EURO 2012 - the biggest large-scale project which
  is sure to bring investments to Ukraine
• business and investments show stable and fast
  growth
• ongoing reforms
• legal advisers may assist to mitigate risks and
  achieve your business objectives

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Welcome to cooperation!

• Dr., Prof. ?ksana SLYUSARENKO
• Deputy Head of the Secretariat of the President
  of Ukraine
  Representative of the
  President in the Verkhovna Rada (Parliament) of
  Ukraine
• www.president.gov.ua