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Doing Business-2021: Ukraine may rise 10-20 steps in the new ranking

    According to preliminary estimates, Ukraine may improve its position and rise by 10-20 steps in the ranking of Doing Business-2021, which characterizes the ease of doing business in the country. Last year, Ukraine ranked 64th out of 190 participating countries. The rating is compiled by World Bank experts.

    Doing business from the World Bank is one of the most influential ratings, which serves as an additional marker for investors. This year, despite the impact and consequences of COVID-19, we have continued to work on important legislative changes that make investment easier, more secure and more attractive. Therefore, Ukraine has every chance to demonstrate improved positions, which will give a positive signal to new investors, both domestic and foreign, “said Minister of Economy, Trade and Agriculture Igor Petrashko.

    Every year during the programming period, which lasts from May to May, World Bank experts determine the ranking of countries on 10 indicators. The change in Ukraine’s position in the ranking will depend on several factors. In particular, the number of changes that World Bank experts take into account in time during the study, the dynamics of achievements of other countries and whether the rating methodology will change as such.

    Currently, the Ministry of Economy has conducted its own preliminary analysis of each of the 10 indicators to determine the possible position of Ukraine in the 2021 ranking.

    “The Ministry of Economy has analyzed more than 30 legislative changes that were introduced in Ukraine during the programming period and may affect the country’s rating this year. In general, Ukraine is showing significant progress in all 10 components,” the Minister added.

    The top three most effective updates include the protection of minority investors from abuse by owners of controlling stakes, which promises to improve Ukraine’s rating on the relevant component by 50 positions, as well as a significant simplification of registration of LLC, which can increase Ukraine by 15 positions on this component. Significant progress has been made in simplifying bankruptcy proceedings. According to this indicator, we claim 60 additional steps.

    The positions in the rating will also be positively affected by changes in obtaining building permits, in particular, the abolition of the share contribution in the construction of industrial facilities; cheaper electricity connections by an average of 18.9% across the country, a number of deregulatory changes in the administration of taxes, according to which the Government intends to enter the TOP-30 in the coming years, and reduced trading time for both exporters and importers.

    “In the end, two points of view are taken into account – the Government and local experts, which are based on the results of implementation, rather than the adoption of legislative changes. The first often takes longer than the rating cycle. Our goal is not a specific growth of Ukraine’s indicator in a specific year. We strive for sustainable development of entrepreneurship and constant growth of the country’s investment attractiveness,” explains Deputy Minister of Economic Development, Trade and Agriculture Dmytro Romanovych.

    The calculations of the experts of the Ministry of Economy do not take into account the growth of other countries in the ranking, as well as this year’s planned updates of the criteria for assessing key indicators, on which the dynamics of Ukraine’s progress also depends.

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