Ukraine Open for INVESTMENT

Open for MANUFACTURING

Open for FREE TRADE

Area & Location:

Borders Poland, Romania, Slovakia,

Hungary and Moldova, Belarus and

Russia, and via the Black Sea,

Bulgaria, Georgia and Turkey

Deep and Comprehensive Free Trade

Agreement with EU

Free trade with CIS, EFTA, FYROM,

Georgia, Montenegro, Macedonia

Finished negotiations with Canada.

On-going negotiations Israel and

Turkey

Ground Floor

Opportunity:

5

• Leading globally in IT outsourcing and

Agribusiness

• Highly skilled workers at cost-

competitive wages

• Low-cost, rapid logistics to EU, Middle

East, Asia

• Most EU-hubs within 2 truck days away

2

• Bold structural reforms unlock growth potential

incl. robust deregulation

• Large consumption gaps = significant upside, at

10-50% CEE peers’ level in most categories

• IMF estimates growth in 2016

603,500 sq. km, largest country within Europe

Geographical center of Europe,

making the country an ideal trade hub

to the EU, Middle East and Asia

Reasons to invest in Ukraine

2

FTA’s:

3 4 4

Attractive Entry

Valuations:

Competitive

Advantages:

• Valuations discounted

significantly vs. peer countries

• FDI key priority for Ukraine

1

UA-based manufacturers benefit from cheaper inputs imported without

(or with lower) import duties and under predictable conditions from FTA

partners - in addition to having access to inputs locally available

FTAs’ Benefits for UA-Based Manufacturers

Tariff

Savings

Cheaper

Inputs

Under FTAs UA exports enjoy increased price competitiveness in foreign markets

4

Predictable Faster Cheaper

More foreseeable policy

environment

(incl. FDIs, IPRs, competition

rules and public procurement)

Substantial elimination

of all customs duties.

Making UA imports

more competitive

Goods movement facilitation

via customs and setting

common rules on technical

and sanitary standards

Without FTA: With FTA:

Importers of UA exports pay

regular import duty (e.g. 10%).

Importers pay no import duty or

“preferential” lower duties (e.g. 2%)

Ukraine

Ukraine has concluded 16 FTAs

covering a total of 45 countries

European Union (28 Member States)

Entry into force: provisional - 1

January 2016. Unilateral preferences

for UA exports applied (pending

ratification by all EU Member States)

Scope: liberalization of trade in goods +

services + government procurement +

gradual legislative approximation and

economic integration with the EU

Internal Market

Population: combined EU-28 States

approx. 500 mil

EFTA States (Iceland, Liechtenstein,

Norway and Switzerland)

Entry into force: 1 June 2012

Scope: liberalization of trade in goods +

services + government procurement

Population: combined EFTA States approx.

13 mil

Macedonia

Entry into force: 5 July 2001

Scope: liberalization of trade in goods

(first agreement concluded by Ukraine with a

non-CIS state)

Population: approx. 2.1 mil

Montenegro

Entry into force: 1 January 2013

Scope: liberalization of trade in goods +

services

Population: approx. 0.62 mil

Former Soviet Union Republics (CIS FTA and

bilateral trade agreements)

Armenia, Azerbaijan, Belarus, Kazakhstan,

Kyrgyzstan, Moldova, Russian Federation,

Tajikistan, Turkmenistan, Uzbekistan

Entry into force: CIS FTA 20 September 2012,

bilateral treaties entered into force between 1994

and 2006

Scope: liberalization of trade in goods

Total population: approx. 245 mil

Canada

Initialed on 14 July 2015

Scope: liberalization of trade in goods +

government procurement

Population: approx. 35 mil

Ongoing negotiations

Israel and Turkey

Generalized Systems of Preferences

(GSP)

Canada, European Union(*), Japan, Turkey

and United States

(*) GSP arrangement will be terminated in

two years after the entry into force of the

EU – UA DCFTA (1 January 2016)

Scope: liberalization of trade in goods

Ukraine’s Network of Free Trade Agreements

3

Market access

500 million

consumers

Removal of

97% of duties

Opportunities under EU-UA DCFTA

Ukraine and the EU signed the Deep and Comprehensive Free Trade Area

on 27 June 2014, as part of the broader Association Agreement

Provisional application of DCFTA starting from 1 January 2016.

Unilateral preferences for Ukrainian goods applied

Removal of 97% of duties on Ukrainian goods and reduction of the

average tariff on Ukrainian exports from 7.6% to 0.5% 5

INVEST UKRAINE

OPEN FOR MANUFACTURING

6

OPEN FOR U

THANK YOU! www.me.gov.ua

OPEN FOR INVESTMENT

OPEN FOR FREE TRADE