Article title Investment Attractiveness of Ukraine under Conditions of Sustainable Development
Name of magazine Legal journal «Law of Ukraine» (Ukrainian version)
Issue 5/2018
Сторінки [60-70]

Given the economic situation currently existing in Ukraine and the need for sustainable development, efficient regulators should be used to ensure investment attractiveness of the country. However, the statistics show unfavorable investment raising trends, in particular, what is meant here is a decline in investment activities of investors in Ukraine. According to the data provided by the State Statistics Service of Ukraine, in 2017 foreign investors from 76 countries invested USD 1.6 billion of direct investment (equity) in Ukraine’s economy, this being significantly lower than in 2016–2015, and this indicates that investors’ interest in Ukraine has substantially declined. The purpose of the article is to identify the determinants which, one way or another, adversely affect Ukraine’s investment attractiveness, and to offer elements of the legal structure of the country’s investment attractiveness in the context of sustainable development. The author highlights the determinants with a negative impact on Ukraine’s investment attractiveness. It is established that for investors, military operations underway in the Eastern regions of the State are the negative factor. Another problem of no less significance is the instability of Ukrainian legislation as an obstacle to investment raising. Scholars and government officials have repeatedly emphasized this, however, without any positive developments in this area so far. Corruption has become an immanent feature of Ukrainian reality and penetrated every sphere of society and its life. Another problem encountered by investors is the excessive regulatory mechanisms applicable to some or other procedures in the sector of business. To solve this problem, the legislator adopts statutes and regulations aimed at simplifying various procedures in the business sector. The article proposes elements of the legal structure of Ukraine’s investment attractiveness in the context of sustainable development, namely: investment policy of the State; tax policy of the State; assurance of an accessible, transparent and efficient system to protect investors’ rights; tax and other incentives. The author comes to the conclusion that sustainable growth of Ukraine’s economy is impossible without an inflow of investments, and thus it is important to ensure that a development strategy is in place for elements of the legal structure of Ukraine’s investment attractiveness.

Keywords investment attractiveness; investment policy; tax policy; protection of investors’ rights; tax incentives

List of legal documents 

1. Konstytutsiia Ukrainy [Constitution of Ukraine]: Zakon Ukrainy [Law of Ukraine] vid 28 chervnia 1996 r. № 254k/96-VR. Vidomosti Verkhovnoi Rady Ukrainy. 1996. № 30. St. 141 (in Ukrainian). 
2. Pro sudoustrii i status suddiv [On the Judicial System and Status of Judges]: Zakon Ukrainy [the Law of Ukraine] vid 2 chervnia 2016 r. № 1402-VIII. Vidomosti Verkhovnoi Rady Ukrainy. 2016. № 31. St. 545 (in Ukrainian). 
3. Pro vnesennia zmin do Hospodarskoho protsesualnoho kodeksu Ukrainy, Tsyvilnoho protsesualnoho kodeksu Ukrainy, Kodeksu administratyvnoho sudochynstva Ukrainy ta inshykh zakonodavchykh aktiv [On Amendments to the Economic Procedural Code of Ukraine, the Code of Civil Procedure, the Code of Administrative Procedure of Ukraine and other Legislative Acts]: Zakon Ukrainy [the Law of Ukraine] vid 3 zhovtnia 2017 r. № 2147-VIII. Vidomosti Verkhovnoi Rady Ukrainy. 2017. № 48. St. 436 (in Ukrainian). 



Authored books 
4. Karlova O ta Kalashnikova Kh ta Kondratenko N ta inshi, Sotsialno-ekonomichnyi rozvytok terytorii: formuvannia investytsiinoi pryvablyvosti: kolektyvna monografia [‘Socio-economic Development of the Territory: Formation of Investment Attractiveness: Collective Monograph] (Drukarnia Madryd 2016) (in Ukrainian). 
5. Burakovskyi I ta Movchan V, Ekonomichnyi komponent Uhody pro Asotsiatsiiu mizh Ukrainoiu ta YeS: profesiinyi analiz ta publichna dyskusiia [Economic component of the Association Agreement between Ukraine and the EU: Professional Analysis and Public Discussion] (Instytut ekonomichnykh doslidzhen i politychnykh konsultatsii 2014) accessed 20 April 2018 (in Ukrainian). 

Edited books 
6. Libanova E ta Khvesyk M (red), Sotsialno-ekonomichnyy potentsial staloho rozvytku Ukrainy ta ii rehioniv: vektory realnoho postupu: natsionalna dopovid [Socio-economic Potential of Sustainable Development of Ukraine and its Regions: Vectors of Real Progress: National Report] (DU IEPSR NAN Ukrainy 2017) (in Ukrainian). 
7. Paton B (red), Natsionalna paradyhma staloho rozvytku Ukrainy [National Paradigm of Sustainable Development of Ukraine] (Instytut ekonomiky pryrodokorystuvannia ta staloho rozvytku NAN Ukrainy 2012) (in Ukrainian). 

Journal articles 
8. Cotula L, ‘Foreign investment, law and sustainable development: A handbook on agriculture and extractive industries’ (2016) 31 Natural Resource Issues 145 (in English). 
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10. Sherzod M, ‘Investment Attractiveness of Regions: Methodic Aspects of the Definition and Classification of Impacting Factors’ (2017) 13 European Scientific Journal 433 (in English). 
11. Averchuk R, ‘Priami inozemni investytsii v Ukraini: viina i myr’ [‘Foreign Direct Investment in Ukraine: War and Peace’] accessed 17 April 2018 (in Ukrainian). 
12. Pavlenko I ta Udovytsia K, ‘Zastosuvannia inozemnoho dosvidu u vdoskonaleni investytsiinoho zakonodavstva Ukrainy’ [‘Application of Foreign Experience in Advanced Investment Legislation of Ukraine’] (2015) 3 Problemy i perspektyvy rozvytku pidpryiemnytstva 93 (in Ukrainian). 
13. Popadynets V, ‘Investytsiinyi klimat Ukrainy u hlobalnii ekonomichnii systemi’ [‘Ukraine’s Investment Climate in the Global Economic System’] (2015) 7 Naukovyi visnyk Mukachivskoho derzhavnoho universytetu 40 (in Ukrainian). 
14. Tkalenko S, ‘Investytsiina stratehiia rozvytku Ukrainy u hlobalnomu seredovyshchi’ [‘Investment strategy of Ukraine’s development in the global environment’] (2011) 2 Stratehiia rozvytku Ukrainy. Ekonomika, sotsiolohiia, pravo 207 (in Ukrainian). 

Thesis abstracts 
15. Kukhar V, ‘Hospodarsko-pravove zabezpechennia derzhavnoï investytsiy̆noï polityky v Ukraini’ [‘Economic and Legal Support of State Investment Policy in Ukraine’] (dys kand yuryd nauk 2008) (in Ukrainian). 

16. Kokkinou A and Psycharis I, ‘Foreign Direct Investments, Regional Incentives and Regional Attractiveness in Greece’ (44th Congress of the European Regional Science Association: “Regions and Fiscal Federalism”, 25th-29th August 2004) accessed 21 April 2018 (in English). 
17. ‘Informatsiino-analitychni materialy shchodo investytsiinoho klimatu v Ukraini za 2017 rik’ [‘Information and Analytical Materials on the Investment Climate in Ukraine for 2017’] (Ministerstvo ekonomichnoho rozvytku i torhivli Ukrainy, 19 March 2018) accessed 15 April 2018 (in Ukrainian). 
18. ‘Informatsiino-analitychni materialy shchodo investytsiinoho klimatu v Ukraini u sichni-veresni 2017 roku’ [‘Information and Analytical Materials on the Investment Climate in Ukraine in January-September 2017’] (Ministerstvo ekonomichnoho rozvytku i torhivli Ukrainy, 19 March 2017) < D0%B5%D1%81%D1%82%D0%B8%D1%86%D1%96%D0%B9%D0%BD%D0%BE %D1%97%20%D0%B4%D1%96%D1%8F%D0%BB%D1%8C%D0%BD%D0%BE% D1%81%D1%82%D1%96%20%D0%B2%20%D0%A3%D0%BA%D1%80%D0%B0% D1%97%D0%BD%D1%96> accessed 18 April 2018 (in Ukrainian).