Ivano-Frankivsk ranked first in the investment transparency ranking, Kyiv is the runner-up and Vinnytsia is on the third place. The Ukrainian chapter of the global anti-corruption network Transparency International has compiled a ranking of investment sector transparency of 100 biggest Ukrainian cities. The analysts have checked how each city informs potential investors on the best investment options in the city, whether the rules of the game are clear for investors and entrepreneurs and whether it is convenient for them to start a business.

Apart from oblast centers, the top 10 includes Bila Tserkva, Druzhkivka, Berdiansk and Sievierodonetsk,

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Ivano-Frankivsk ranked first in the investment transparency ranking, Kyiv is the runner-up and Vinnytsia is on the third place.

How Was the Ranking Compiled?

TI Ukraine carefully studied all the available information on investments in the cities.

They found out whether public events with discussion of policies influencing investment projects are held and whether minutes or recordings of such discussions are published.

They assessed the publication of regulatory acts and the presence of a separate section for investors in Ukrainian and English on the official website, as well as presence of an investment passport of the community in English and Ukrainian.

The ranking also takes into account publication of the city’s credit rating, the presence of a geoportal (access to a map with geographical information) and a separate section with information on investment objects proposed by city authorities regardless of the form of ownership.

No city reached the maximum score of 20 points. Ivano-Frankivsk, the leader of the ranking, has only 15.

Investment portal of Ivano-Frankivsk – http://invest-if.com/uk/
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No city reached the maximum score of 20 points. Ivano-Frankivsk, the leader of the ranking, has only 15. 

With regard to that, program manager of Transparent Cities Kateryna Tsybenko says that most cities have a lot of work to do before they can achieve transparency in the investment sector.

“The top 10 includes cities which make the most effort to inform potential investors on the benefits of investment in their cities, create more transparent conditions for businesses and work on engagement of entrepreneurs in decision-making on policies that directly impact it. The top 10 includes 4 cities which are not oblast centers, and it is very important that they understand the necessity for this activity,” says Tsybenko

What Is Special about the Leaders?

The analysts took into account investment portals, information on investment objects and utility networks connected to them, connection to the platform helping entrepreneurs to start a business, electronic auctions for small businesses, a program for development of entrepreneurship, timely publication of draft regulatory acts and public discussions around them.

Ivano-Frankivsk has an investment portal containing all the necessary information for investors apart from a platform for starting a business and a list of current regulatory acts.

A list of startups and a map of investment objects can be found on the website.

Transparency identified that Kyiv has the best geoportal.

Kyiv geoportal
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The top 10 includes cities which make the most effort to inform potential investors on the benefits of investment in their cities, create more transparent conditions for businesses and work on engagement of entrepreneurs in decision-making on policies that directly impact it. The top 10 includes 4 cities which are not oblast centers, and it is very important that they understand the necessity for this activity.

Kateryna Tsybenko, program manager of Transparent Cities

A geoportal is a detailed map with various city facilities where you can find the name of the object under construction, who commissioned it and its cadaster number.

The map also contains information on the environmental situation in the city, areas threatened by flooding or landslide, areas where soils are polluted with Cesium 137.

Among smaller cities, Berdychiv can boast of an investment portal, Boyarka has a brandbook and Chornomorsk has the best practice with regulatory acts.

It is noteworthy that transparency of the investment sector is not always reflective of the biggest number of investments in the respective region.

For instance, the investment appeal ranking compiled by EuroRating agency puts Vinnytsia, Dnipro and Zhytomyr as the three leaders in 2018, while Ivano-Frankivsk is on the fifth place.

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It is noteworthy that transparency of the investment sector is not always reflective of the biggest number of investments in the respective region.

What Should Be Done to Attract Investors?

Available information for investors is not end all, be all. To be more exact, it is only one of the options to drive businesses to the city.

Maria Repko, deputy executive director of the Center for Economic Strategy, believes that the most important thing that the government can do universally to attract investments is defend the right of ownership, comply with contracts and ensure the rule of law .

It is also important that the judicial reform should be completed.

“It is important for foreign investments that the restrictions for withdrawal of dividends and profit from investments should be abolished and that there should be no possibility of their reintroduction in the future. It will be possible in the situation of macrofinancial stability – a balanced budget and continued cooperation with the IMF,” says Repko.

Besides, investments will increase if the issue with protection of creditors’ rights is resolved – the relevant law is to be signed by the President any minute now.

“If the rights of creditors are protected, it will mean banks providing more loan opportunities. Currently, the share of capital investments made with the use of a bank loan is extremely small. If loans are ‘unfrozen,” we will see more investments and therefore stronger economic growth,” says the economist.

 

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If the rights of creditors are protected, it will mean banks providing more loan opportunities. Currently, the share of capital investments made with the use of a bank loan is extremely small.

Maria Repko, deputy executive director of the Center for Economic Strategy