Introduction to the Seminar: Market Opportunities in the Water Sector in Ukraine Rotterdam, 18 November 2014 Anneloes Viveen

Economic Potential of Ukraine The latest (economic) developments in Ukraine Impact on business climate and future outlook The consequences of the DCFTA for Dutch companies What can the Embassy do for you?

There are and will be (economic) challenges -Attack on the territorial integrity of Ukraine in Crimea and Donbas -Current economic recession with growing budget deficit and strong depreciation of hryvna -Loss of one of the main trading partners: Russia (30%<< export) -Slow improvement of business and investment climate, shadow economy, level playing field in certain sectors and implementation of anti-corruption package -Economic outlook for the short-term is not too promising

However Ukraine ≠ Donbass Donbass = Donetsk and Luhansk. Prior home to 15% of Ukraine’s population of 45 million Contributed 16% to the nation’s GDP, but its economy is heavily subsidised Impact on current crisis: more than IDPs, 60% of enterprises in Donbass are not working, lack of coal which affects the electricity production, industrial output decreased by 21%.

At the same time many positive changes +Nov-Feb: Maidan of Dignity +Feb-Oct: United coalition government which started to work on the reform agenda +May, Oct: Free and fair Presidential and Parliamentary Elections +Elections outcome: clear choice from the UA people for the EU-oriented reform government +Jun, Sept: Signing and ratifying of the Association Agreement including DCFTA, basis for the reform agenda +Increased export to the EU by 25 % in Agricultural output grew by 16 % in Increasing support from IFI’s and donors to support the reform agenda +Doing business ranking improvement to 96 from 112, Oct Doing nothing is no longer an option (IMF and EU conditionality) +Finally time to make use of Ukraine’s huge potential

place your image here

Strong Dutch-Ukrainian economic relations Export from Ukraine to the NL has grown by 38% in the 1 st half of rd foreign direct investor into Ukraine (5349,9 million USD, 2014) NL top 10 EU-importer and exporter to and from Ukraine. Export from Ukraine mainly grains, ferrous metals, fats and oil (seeds). Import to Ukraine mainly equipment (boilers, engines, etc.), vehicles (second hand), plastic/polymers, pharmaceuticals and pearls/jewellery Around 250 Dutch companies remain active in Ukraine in the following sectors agrifood, horticulture, energy (efficiency, sustainability, biomass), logistics (transport and infrastructure), water (filtration and sanitation), high tech (IT), retail, construction and services (banking, engineering, consultancy, accounting)

What is going to change for Dutch Companies under the DCFTA? Comprehensive reform program for Ukraine to align its business laws and procedure with the EU over a period of 10 years Elimination of import and export duties between the EU - UA Gradual alignment of UA requirements to EU regulations and procedures Gradual alignment of sanitary and phytosanitary measures Expansion of trade in services Applying of EU public procurement regulations. Opening UA government tenders for EU business and vice versa. Aligning many more procedures and regulations in the field of safeguards, intellectual property, trade facilitation, competition policy, movement of capital, transparency and sustainable development.

What does the Embassy offer? Providing information and advice to enter the market Trade assistance to Dutch entrepreneurs already active Offering networking opportunities and entries to government, IFI’s, etc. (example: two-annually trade missions, joint exhibition participation) Stimulating a sustainable improvement of the international business climate Support with specific governmental economic support programs e.g.: PIB, PfW, subsidy for advice feasibility studies and demonstration projects, PUM and Zakenpartnerscan Orange Carpet for business visa Follow us on:

Questions?