Ukraine Markets Daily (November 24, 2016)

Market news

  • The Government cancelled over 360 outdated business regulations

Market comment

The UX index was up by 0.4% Yesterday, while the PFTS (in UAH terms) indexes remained unchanged. The WIG-Ukraine index was down by 1.4%. On the interbank exchange market, the USD/UAH was down by 0.6% to UAH 25.63 (mid price), according to Bloomberg. The official exchange rate reported by the NBU was UAH 25.59.

 

The Government cancelled over 360 outdated business regulations

On November 23, 2016, the Ukrainian government has repelled 367 different regulatory rulings weighing upon businesses, the Ukrainian Prime Minister Volodymyr Groysman has announced. "Today this is an example of the solution that would help us to climb in the Doing Business Index by 10 positions… We will cancel everything in packages. If a ministry wants to leave some regulating rules in force, let it explain this in public," the Prime-Minister stated at a sitting of the Government. A lot of standard specifications still have their roots in the Soviet era, Groysman stressed, and a lot of unjustified fines and penalties were imposed on businesses under outdated regulations. The Government is struggling to intensify economic growth, and this is possible only pending serious deregulation and investment into the real economic sector. The necessary prerequisites must be provided for that, Groysman maintained.

Our view:

The news is POSITIVE demonstrating the Government consistency in implementing its stated agenda of fostering business development, especially the small and medium one. Moreover, we think that the decision takes the Ukrainian business regulatory framework and environment in line with the European practice. The decision could also be considered as another tool in the Government anti-corruption policy.