1. Investment Attractiveness Index with the support of the InMind research company EBA Investment Attractiveness INDEX IV/2010 Conducted by EBA with the support of InMind research company

2. Investment Attractiveness Index with the support of the InMind research company 2 Project summary The results of 10 th wave of investment climate in Ukraine tracking research: IV quarter of 2010. Methodology: The EBA Investment Attractiveness Index is assessed as the mean value based on the following five questions: What do you think about the investment climate in Ukraine? How would you estimate the investment climate for your company in Ukraine at the moment compared to the previous three months? What are your expectations of the investment climate in Ukraine over the next three months? In your opinion, would it be profitable for new entrants to invest in Ukraine over the next three months? What are your expectations of the business environment of your primary industry over the next three months? Participants: 110 CEOs of EBA members companies Timing: November 11 th 2010 – December 3 rd 2010 Survey Implementation: the Survey was conducted by EBA with the support of InMind research company

3. Investment Attractiveness Index with the support of the InMind research company 3 Key findings

4. Investment Attractiveness Index with the support of the InMind research company 4 Key findings

5. Investment Attractiveness Index with the support of the InMind research company 5 Key findings III/2008IV/2008I/2009II/2009III/2009IV/2009I/2010II/2010III/2010IV/2010 Investment Climate in Ukraine 3,12,32,02,32,22,12,73,83,63,5 Investment Climate Dynamics: last 3 months 2,81,82,12,72,52,63,2 3,13,4 Investment Climate Dynamics Expectations: next 3 months 3,12,2 2,82,62,83,43,03,2 Profitability for new entrants: next 3 months 3,42,32,42,72,62,52,93,33,2 Investment Climate of Primary Industry: next 3 months 3,32,52,42,72,92,83,23,13,03,1 General EBA Index3,142,22 2,642,562,573,083,253,203,28

6. Investment Attractiveness Index with the support of the InMind research company 6 Key findings

7. Investment Attractiveness Index with the support of the InMind research company 7 EBA – Index: Components

8. Investment Attractiveness Index with the support of the InMind research company Mean 3,12,32,02,32,22,12,73,83,63,5 8 Investment Climate in Ukraine The Investment Climate in Ukraine is… (5 point scale) 0 – +

9. Investment Attractiveness Index with the support of the InMind research company 9 Investment Climate Dynamics: last 3 months The Investment Climate in Ukraine is… (5 point scale) 0 – + Mean 2,81,82,12,72,52,63,2 3,13,4

10. Investment Attractiveness Index with the support of the InMind research company 10 Investment Climate dynamics expectations: next 3 months The Investment Climate in Ukraine is… (5 point scale) 0 – + Mean 3,12,2 2,82,62,83,43,03,2

11. Investment Attractiveness Index with the support of the InMind research company 11 Profitability for New entrants: next 3 months Profitability for New Entrants … (5 point scale) 0 – + Mean 3,42,32,42,72,62,52,93,33,2

12. Investment Attractiveness Index with the support of the InMind research company 12 Investment Climate of primary industry: next 3 months Investment climate of primary industry… (5 point scale) 0 – + Mean 3,32,52,42,72,92,83,23,13,03,1

13. Investment Attractiveness Index with the support of the InMind research company 13 Changes in Investment Climate after the President Election 27% of investors report that no changes took place yet since the President of Ukraine was elected. The main positive change reported is stability which is mentioned by each fifth respondent (22%). Among new negative trend that is reported intensively in IV quarter 2010 is increased corruption and bureaucracy (16%). Among other changes there are increased inspections from state administrations, negative impact of the Tax Code (mentioned by 11% and 10% correspondingly).

14. Investment Attractiveness Index with the support of the InMind research company 14 Estimation of the situation with solving issues compared to the previous 3 months For the majority of issues raised by EBA in the context of interaction between business and authorities the situation remained unchanged or worsened. The strongest negative dynamic compared to the previous quarter concerns perception of situation with corruption and court system reform. There is also unfavorable situation with customs procedures simplification and technical barriers to trade.

15. Investment Attractiveness Index with the support of the InMind research company 15 Key findings Five-grade scale is used to evaluate the investment climate, where 1 stands for the lowest evaluation and 5 stands for the highest evaluation In IV quarter of 2010 the EBA Investment Attractiveness Index has changed from 3.20 to 3.28 on a 5 point scale. The changes were mainly caused with improved evaluation of the actual investment environment during the previous quarter (the evaluation increased from 3.1 to 3.4). The current investment climate evaluation showed a slight tendency to decrease from 3.6 to 3.5. The expectations for the next quarter mainly remained unchanged.

16. Investment Attractiveness Index with the support of the InMind research company 16 Key findings Considering the progress with 7 key points EBA raised in the context of business and authorities interaction the situation remained unchanged or worsened. The strongest negative dynamics compared to the previous quarter concerns perception of situation with corruption and court system reform. In evaluation of the changes that took place after the President of Ukraine election the investors’ opinions were polarized. While some changes are evaluated as positive ones (with the main emphasis on the gained stability) more of them are perceived as negative ones. Among the latter there are corruption and bureaucracy increase, state administration inspections, expected negative consequences on new Tax Code introduction, and others.

17. Investment Attractiveness Index with the support of the InMind research company +38 044 496 06 01 office@eba.com.ua www.eba.com.ua