At the conference titled "Investments During a Full-Scale War - the Perspective of Poland and Ukraine," held in Warsaw, representatives from both nations discussed the pivotal role of Polish investments in Ukraine's future, emphasizing how this cooperation can be further strengthened.
Importance of Investments During War
Ruslan Perun, advisor and head of the commercial department at the Embassy of Ukraine in Poland, highlighted the critical importance of continued investments in Ukraine during this challenging period. "Investments are a signal that Ukraine is not alone and the world believes in our victory," Perun stated, underscoring the symbolic and practical significance of foreign capital in bolstering Ukraine's resilience.
Jacek Piehota, president of the Polish-Ukrainian Chamber of Commerce, echoed this sentiment, pointing out that successful Polish investments in Ukraine are a testament to the strong partnership between the two countries. He cited examples such as Philip Morris investing $30 million and Cersanit contributing $20 million, demonstrating the confidence Polish businesses have in Ukraine's economic future.
Support from the Ukrainian Government
Oleksandr Melnychenko, acting General Director of UkraineInvest, provided concrete examples of how the Ukrainian government is actively supporting foreign investors. He mentioned legal frameworks that offer incentives such as purchasing investment plots without competition, tax exemptions, and compensation for expanding transport and utility networks. These measures are part of Ukraine's broader strategy to attract and retain foreign investment, even amid the ongoing conflict.
Polish Investment Trends
According to the National Bank of Ukraine, foreign investment in the first quarter of 2024 surpassed figures from previous years, with Poland playing a significant role. Between 2009 and 2024, Polish investments in Ukraine have been concentrated in the processing industry ($357.6 million), financial and insurance activities ($222.9 million), and wholesale and retail trade ($140 million). In 2023, Poland ranked 8th among investor countries in Ukraine.
The Need for Further Investment
Elizaveta Yasko, a member of Ukraine's Foreign Affairs Committee, emphasized the urgent need for continued foreign investment to rebuild Ukraine's infrastructure, much of which has been destroyed by the war. She noted that 4,000 educational institutions and about 2,000 healthcare facilities have been completely or partially destroyed, necessitating significant financial support for reconstruction.
Yasko also highlighted the need for investments in Ukraine's energy and metallurgical sectors, which are crucial for the country's economic recovery and long-term stability.
Strengthening Cooperation and Overcoming Challenges
Andrzej Dykha, president of the board of the Polish Investment and Trade Agency, stressed that government guarantees are essential for the development of investments. He also pointed out that effective cooperation between economic self-government and state bodies is vital for fostering a conducive investment environment.
To further enhance foreign investment in Ukraine, several measures were suggested, including:
- Risk Insurance Instruments: Implementing robust insurance mechanisms to mitigate investment risks.
- Multi-Year Aid Programs: Engaging in long-term aid initiatives to ensure sustained support.
- Border and Customs Improvements: Streamlining processes at the Polish-Ukrainian border and improving the efficiency of customs and tax authorities.
- Combating Corruption: Reducing the gray market and corruption to create a more transparent business environment.
Conclusion
Polish investments are poised to play a crucial role in Ukraine's post-war recovery, with both nations working together to overcome challenges and create a prosperous future. The continued partnership, supported by government initiatives and private sector engagement, will be essential in rebuilding Ukraine and ensuring long-term stability and growth.
