U.S. envoy for Ukraine lists preconditions for drawing private investment

MOSCOW. Dec 8 (Interfax) - Security, reforms, new support tools, and infrastructure development are among the key elements that would encourage private investment in Ukraine, United States Special Representative for Ukraine's Economic Recovery Penny Pritzker said.

It is important to work together on solving fundamental issues now, focusing on some key elements, primarily security, Ukrainian media said referring to Pritzker's remarks she made via video link at an American Chamber of Commerce annual meeting in Kiev on Thursday.

It is also vitally important for Ukraine to continue reforms, including for its possible accession to the European Union, and an anti-corruption reform is still of paramount significance in drawing the private sector's interest for the Ukrainian economy's full recovery, she said.

While Ukraine has made major progress in some areas, numerous obstacles are still in place, she said.

As a third key element, Pritzker mentioned the creation of new support tools, such as investment risk insurance and marine insurance, which, as she said, should facilitate economic activity even amid the crisis.

Fourthly, Pritzker called for promoting the development of infrastructure expanding access to markets and increasing exports, which, in her view, is an area having the best potential for quick results and the best return on investment in terms of increasing government revenues and profits.

As an example, Pritzker cited the ports of Greater Odessa, whose operations helped boost grain and steel exports from an average of 2 million tonnes to 7-8 million tonnes a month within a short period of time, which could add $25 billion, or 8%, to Ukraine's GDP and potentially increase tax proceeds by $5 billion a year, which would make up nearly 10% of the state budget.

These fundamental elements should be highlighted, and U.S. business leaders and the private sector should be informed of opportunities existing in the Ukrainian agricultural, technology, defense, critical mineral resources, steelmaking, energy, transport, and logistical sectors, she said.