Ukraine recognizes the crucial business requirements for its development, including safety, legal protections, favorable taxation, predictable economic policies, subsidies, access to the EU market, and a skilled workforce.
Given the prevailing rhetoric from key NATO and EU stakeholders, it is evident that Ukraine’s future will undergo a dramatic transformation once the war is over. The security, political, and economic landscape will be shaped by a multinational alliance of civilized nations operating under shared terms and conditions. Ukraine will benefit from the protective mechanisms of NATO, paving the way for significant international business prospects.
It is essential to establish a new social contract between citizens, businesses, and the state to address these needs effectively. The underperformance of the Ukrainian economy can be attributed to various factors, resulting in inadequate state services and business community’s passive resistance to oppressive state practices.
While Ukraine has implemented a few successful projects, more initiatives are needed. Examples such as the transparent and anti-corruption platform “Prozorro” for public procurement services, the tax and legal space provided by “Diia.City” for the IT industry, and the Ministry of Digital Transformation’s goal of moving all public services online by 2024 demonstrate the potential of effective, anti-corruption, and stimulating reforms. Reforms are crucial not only for winning the war but also for achieving long-lasting peace. Ireland, Baltic countries, and Poland serve as recent examples of successful transformations.
The united Ukrainian society, which has paid a high price for its freedom and European choice, will push any government towards an innovative, favorable, and forward-looking economic model. The state has already begun responding to these demands.
In June 2023, President Zeleskiy confirmed the implementation of a liberal tax reform, with proposed rates of 10% for corporate profit tax, personal income tax, and VAT. Although this discourse has sparked debates and requires further discussions, the united Ukrainian society, including the Coalition of Business Communities for Modernization of Ukraine comprising 77 leading business associations, will continue its consolidated efforts. This progress provides a foundation for a new social contract and the transformation of the state.
We firmly believe that Ukrainians, who have demonstrated resilience against Russian aggression, have the ability to achieve an economic breakthrough following victory. Ukraine, once mistrusted, has now become a subject of international policy and its society has become empowered within the country. With support from the civilized world, Ukraine is poised to become an important member of the EU and NATO, offering a favorable business environment and experiencing growth.
Ukraine is an example of how great tragedy can initiate transformative change. Join us on this journey.