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InvestUkraine seeks inspiration for attracting foreign investments in the Czech Republic

To enhance its ability to attract foreign direct investment, the Ukrainian investment promotion agency InvestUkraine is looking to its Czech counterpart, CzechInvest, for inspiration.

20.12.2007

"InvestUkraine is only two years old and it is true that CzechInvest has in many ways served as a model for our agency," explains Larysa Hyriavec, leader of InvestUkraine's delegation, which in a series of meetings with representatives of CzechInvest through Friday will examine possibilities for presenting Ukraine to potential investors.

“InvestUkraine signed a memorandum of cooperation with CzechInvest more than a year ago. The aim of this is to share best practices, not only in the area of attracting foreign investments into transition economies – i.e. to countries which relatively recently gained their independence from the eastern bloc,” continues Larysa Hyriavec. “Today Ukraine is undergoing changes that are very similar to those experienced by most Central European economies at the beginning of the 1990s. Therefore, we want to learn from the most successful countries whose previous conditions were similar.”

Representatives of CzechInvest are demonstrating the agency’s work to the Ukrainian delegation, primarily its role in attracting foreign investments. According to statistics from the Czech National Bank, Ukrainian companies have thus far invested CZK 318 million in the Czech Republic, while Czech firms have invested CZK 370 million in Ukraine. One of these Czech investors is Škoda-Auto, which assembles automobiles near Uzhorod for the eastern market.

“The Czech Republic is focused primarily on domestic and foreign investments in demanding projects involving research and development centres, technology centres and so on. For us, Ukraine represents rather indirect competition, as our main rivals in attracting investments are primarily countries of the Visegrad Four group,” explainsAlexandra Rudyšarová, acting CEO of CzechInvest. “Investors often perceive the entire CEE region as a highly interconnected unit. The stability and strength of economies in the whole region are important for them. Therefore, CzechInvest is – within its abilities – always prepared to provide consultation to similar agencies abroad.”

“Ukraine is currently experiencing a boom in foreign investments. We can offer investors the largest single market in Europe with a population of 47 million people, an interesting location between Russia and the European Union and an educated, high-quality workforce. InvestUkraine’s role is not only to assist investors, but also to attract investments into the most prestigious sectors. We have visited the Czech Republic and CzechInvest in order to study the Czech system and to learn how to utilise its strongest aspects under the conditions found in the Ukraine,” concludes Larysa Hyriavec.