Publication date: 08.06.2024
Investor protection in Ukraine: current challenges and prospects
Introduction
Protecting investors' rights is a key factor for the stable economic development of any country. In Ukraine, this aspect is particularly important in the context of economic and political challenges affecting the investment climate. This article will discuss the current challenges faced by investors and the prospects for improving the legal protection of their rights.
Legal framework
The Law of Ukraine "On Investment Activity":
- Defines the legal, economic and social conditions for investment activity in Ukraine.
The Law of Ukraine "On Protection of the Rights of Foreign Investors":
- Provides legal protection for foreign investors, including guarantees of protection of their investments.
The Civil Code of Ukraine:
- Contains general provisions on property rights, obligations and liabilities that also apply to investment activities.
Commercial Code of Ukraine:
- Regulates the legal framework for economic activity, including investment relations.
Current challenges for investors
Political instability:
- The unstable political situation may create risks for investors, including changes in legislation, political conflicts and other factors affecting the stability of the investment environment.
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Corruption:
- High levels of corruption remain one of the main obstacles to attracting foreign investment. Corrupt practices can affect contracting, licensing and permitting processes, as well as court proceedings.
Imperfection of the legal system:
- Imperfections in the legal system, including delays in court proceedings and problems with the enforcement of court decisions, create additional risks for investors.
Military conflict:
- Military operations in eastern Ukraine and the imposition of martial law in certain regions create additional risks for investors, including the risk of loss of property and disruption of business operations.
Prospects for improving investor protection
Reform of the judicial system:
- Increasing the efficiency and independence of the judiciary is key to improving investor protection. This includes speeding up court proceedings, ensuring transparency and enforcement of court decisions.
Fighting corruption:
- The introduction of effective anti-corruption measures, strengthening of control over compliance with anti-corruption legislation and increased transparency in the activities of state bodies will help create a favorable investment climate.
Protection of property rights:
- Improving the protection of property rights, including improving registration procedures and enforcing owners' rights, is an important aspect of attracting investment.
International standards and agreements:
- Integration of international investor protection standards into national legislation and conclusion of bilateral investment protection agreements will help to increase the confidence of foreign investors.
Supporting innovations and startups:
- Creating favorable conditions for the development of innovative enterprises and startups, including tax incentives, access to finance and support from government institutions
