IFC Survey Shows Some Progress in Reforming Regulations in Ukraine, Challenges Remain

In Kyiv: 
Victoria Tetyora 
Phone: (044) 490-6400 
E-mail: vtetyora@ifc.org 




Kyiv, Ukraine, October 22, 2009—A survey by IFC, a member of the World Bank 
Group, finds that  the existing system of permits, inspections, and technical 
regulations cost Ukrainian businesses some $1.55 billion in 2008 and remains a 
burden for their operational activities, though some progress toward reform has 
been made. 

The report, Investment Climate in Ukraine as seen by Private Businesses 2009, 
is based on a survey of about 2,000 businesses around Ukraine. The survey was 
conducted by the IFC Ukraine Investment Climate project from December 2008 to 
March 2009. It examined the local business environment from the viewpoint of 
private businesses and focused on key regulatory obstacles, including permits, 
inspections, and technical regulations.  
  
The survey registered some progress against a comparable report conducted in 
2006; however, the pace of reforms remains very slow. For instance, an 
enterprise now requires 54 days to obtain all permits necessary to operate, 
compared with 60 days in 2006. The number of inspections also has dropped—75 
percent of businesses were inspected in 2008, compared with 95 percent in 2006.  

“Though we see some positive signs, Ukraine needs to advance its reform pace 
further to improve the country’s competitiveness and attractiveness as a 
business-friendly investment destination,” said Vyacheslav Bykovets, acting 
President of Ukraine’s Union of Small, Medium-sized and Privatized Enterprises. 

Sanjar Ibragimov, Project Manager, IFC Investment Climate project, said, “The 
survey helps identify the focus areas for further regulatory reform and IFC 
will continue advising our partners in the reform process.”

Key survey recommendations include defining an exhaustive list of permits, 
adopting a principle of silent  consent in the permit process, moving to a 
control system based on market surveillance, making most standards optional, 
keeping only safety requirements as mandatory, and reducing the number of 
mandatory certification. 

The IFC Ukraine Investment Climate project is supported by the Canadian 
International Development Agency, the Swedish International Development 
Cooperation Agency, and the Dutch Agency for International Business and 
Cooperation. 

For more about the report, visit http://www.ifc.org/ukraine/bee. 

About IFC  
IFC, a member of the World Bank Group, creates opportunity for people to escape 
poverty and improve their lives. We foster sustainable economic growth in 
developing countries by supporting private sector development, mobilizing 
private capital, and providing advisory and risk mitigation services to 
businesses and governments. Our new investments totaled $14.5 billion in fiscal 
2009, helping channel capital into developing countries during the financial 
crisis. For more information, visit www.ifc.org. 

About the Investment Climate Advisory Services of the World Bank Group 
The Investment Climate Advisory Services of the World Bank Group helps 
governments implement reforms to improve their business environment, and 
encourage and retain investment, thus fostering competitive markets, growth and 
job creation. Funding is provided by the World Bank Group (IFC, MIGA, and the 
World Bank) and over fifteen donor partners working through the multidonor FIAS 
platform.