Poroshenko: Ukraine looking for unconventional, liberal solutions to improve investment climate, boost economic growth

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Ukraine has halted economic slowdown but its current pace of development is not enough to achieve stability and improve the quality of life, President Petro Poroshenko said.

“The good news is that the years of (economic) downfall caused by war, the loss of a significant part of our industrial potential, and Russia’s economic aggression – that trend has been broken. But there is no reason for fireworks,” Poroshenko wrote in a column for the Novoye Vremia newspaper and The Economist World, published on Saturday.

“This pace is categorically unsatisfactory for steady economic development and restoration of living standards” he said.

“This is why we are looking for unconventional, non-trivial and liberal solutions to improve our investment climate, speed up economic growth and create new jobs,” Poroshenko said.

For example, instead of taxing companies’ profits Ukraine could introduce a tax on the capital taken out of the country, he said. This would free up funds for business development as the taxation would only affect that part of profits, which is not intended for production expansion or creation, the president said.

“I hope we will launch this novelty from January 1, 2019. But for now we will introduce payment by installment of the VAT on equipment imported for production expansion and upgrade,” Poroshenko said.

In 2018 Ukraine will continue to develop confidently and will welcome “serious investors,” Poroshenko said.

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