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Arseniy Yatsenyuk forecasts economy to grow by 2% in 2016
26.10.2015 | 13:01
INFORMATION AND COMMUNICATION DEPARTMENT OF THE SECRETARIAT OF THE CMU

Among core areas of investment into Ukraine for the German business are viewed transport infrastructure, agricultural sector, power industry and energy efficiency. Prime Minister of Ukraine Arseniy Yatsenyuk announced in 10 minutes programme on Sunday, October 25, speaking about outcomes of the recent Ukrainian-German economic forum in Berlin.

Arseniy Yatsenyuk stressed that in the past 18 months the Government's program of reforms had been aimed primarily to ensure fiscal and financial stabilization: "Onerous debts, billions in spending to serve them, unprecedented sums in expenses for national security and defense. It was vital to find extra funds to improve wages and pensions. It was necessary to finance social, health and education areas.

So, our first package of economic transformations was aimed directly at stabilizing the economic situation. And this is the basis of our programme with international creditors."

Now, he stressed, we should think about economic upswing: "We predict that in 2016 the Ukrainian economy will boost by 2%".

The Prime Minister reminded that on 1 January 2016 an Agreement on free trade area between Ukraine and the European Union was due to come in force: "This will be a strong impetus for the Ukrainian economy to become competitive and for the foreign investments to come into Ukraine".

Arseniy Yatsenyuk noted that on October 23, along with Federal Chancellor of Germany Angela Merkel they opened the first conference in history of between Ukraine and Germany gathering business representatives of the two states: "Over the past year and a half the German business hasnt left Ukraine, and, on the contrary, is willing to further invest in the Ukrainian economy".

According to the Head of the Government, German entrepreneurs say that Ukraine "has done a lot”: “But much more should be done to ensure flow of German investments into Ukraine and as a result opening new businesses, creating new jobs and bringing new technologies".

The key area of German investments in the Ukrainian economy, Arseniy Yatsenyuk underlined, - is primarily the transport infrastructure. He informed that the Government had already started negotiations with Germany’s Siemens for updating the rolling stock of Ukrainian railways and performing their modernization.

Another important area of investment is agriculture: "We need investment in order to have new equipment of high quality. Therefore, we are holding negotiations on the release of financial assistance for Ukraine through the Hermes company which will focus on providing Ukrainian farmers with loans to purchase German equipment - such as CLAAS and John Deere combine harvesters, being produced in Germany."

Energy is one more area for German business investment. Arseniy Yatsenyuk said that he had appealed to German companies "that it is time to invest in the Ukrainian gas transportation system": "We have adopted a corresponding law, and there is every opportunity to let German energy companies join the Ukrainian energy system and together operate the Ukrainian GTS and storage facilities."

"This will be the best way to avoid bypassing Ukraine and building pipelines of various kinds designed to deprive Ukraine's transit potential. This is a very strong kind of energy business and the formation of a joint energy policy between Ukraine, Germany and the EU as a whole," added the Prime Minister.

Arseniy Yatsenyuk also said that Germany considered Ukraine as one of the key countries in terms of investments in energy efficiency and energy saving. This, according to him, has become possible "thanks to the reforms in the energy sector, which we carried out, including the very difficult but right reforms in pricing and tariff of energy resources, in the management systems of energy monopolists of the state."

German investments in energy efficiency, he emphasised, "mean new boilers, insulation and technologies that save energy resources and enable to pay less for utility services."

"Our economic cooperation with Germany is very important. Germany is a leader in economic development of the European Union. And despite all the problems that exist in the EU and Germany, including those related to the migrant crisis, losses of member countries of the European Union because of imposed sanctions against the Russian Federation - German Chancellor Angela Merkel supports the Ukrainian people," Arseniy Yatsenyuk pointed out.

The Prime Minister has also said that on 26 October Commerce Secretary Penny Pritzker arrives to Ukraine "with the purpose of attracting US investments into the Ukrainian economy": "After our investment conference held in Washington, American business is coming to Ukraine in order to invest in Ukraine, create new enterprises, new jobs and develop our economy."

 

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