Oleg Milchenko, senior associate at DLA Piper Ukraine, outlines the initiatives that are focused on protection of investments in real estate and encouraging private investments in transport infrastructure and state-owned property in Ukraine.
Situated between the European, Russian and Asian markets, Ukraine, with its highly qualified workforce and a number of inexpensive assets on offer, is an interesting prospect for investors, particularly those who are looking to invest in the manufacturing, agricultural and transport sectors. Direct investments in Ukraine continue to grow, proving the fact that country is on the right track. In 2016 the Ukrainian economy grew by 2.3 percent according to the National Bank of Ukraine, the Bank noting that private investments were the driver of this increase.
Protection of property rights
Recent legislative changes have significantly improved the protection of titles to real estate. The introduction of a new approach to the registration of property rights has made the registration procedure prompt and transparent and allowed for independent title checks. An ongoing judicial reform, in turn, will result in effective protection of investors' rights. The reform provides for a three-tier court system that includes local courts, courts of appeal and the Supreme Court. In addition, the reform envisages a new, open and transparent procedure for appointing judges.
Encouraging investment in infrastructure and state-owned property
Ukraine has a number of state-owned enterprises which require updating and substantial investment. To boost the privatization process, the Ministry of Economic Development has already introduced a new core law on privatization, which was developed in cooperation with the EBRD and is based on best international privatization practices.