22 March 2010

BBCU Meeting 18 March 2010

The BBCU held a networking meeting last Thursday 18 March under the theme:
"Ukraine under a New President and New Government"

58 members and some guests attended.
Members were invited to share their views on what they think will happen in Ukraine as a result of a new President being elected and also a New Government. This was a great opportunity for members to voice their opinion in both a positive and negative mood.

We also conducted group discussions based on the scenario 'Should we invest in Ukraine'.
Unfortunately the subject of corruption is still seen as a major barrier to doing business in the country.
We also discussed the problem of VAT refunds in Ukraine. Many companies are now experiencing problems as a result of the governments refusal to make VAT refund payments.
It is estimated that over USD3billion is owed by the government to private companies.
One British company involved in agriculture in Ukraine is owed UAH 80m (USD 10m) and may have to write off the debt. This does not make the country look good at all to potential new investors. It is an issue that will be taken up by many lobby organisations.
Lets see how the 'new' governement deals with it.

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