Ukraine again losing chance for reform - investors
LONDON. May 16 (Interfax) - Reform has ground to a halt in Ukraine, which is losing its investment appeal, investors told the seventh Adam Smith Conference summit in London.
The situation in Ukraine is disappointing, said Timothy Ash, director for emerging market research at Royal Bank of Scotland. Prospects were good a year ago and its seemed that remarkable people in the administration will not only talk, but also promote reform, he said.
Everything looked promising until November, when the process of reforms halted, said Anders Aslund, senior researcher at the Peterson Institute for International Economics.
Ash also said that half of the growth in investment in Ukraine was due to banks, especially banks with foreign capital. But after the crisis and due to a low level of capital return banks will remain cautious for a long time, he said.
The only exception is Russian banks, which have been aggressively expanding their balances, driven by geopolitical interests, the RBS representative said
Investors have been increasingly eyeing Asia, Latin America and Africa, therefore rivalry for investment has been increasing in Europe, he said
Neighboring countries have managed to create a far more appealing investment climate than Ukraine, Ash said.