ULIE initiates changes in EU approach to supporting private sector in Ukraine through review of European Neighbourhood Policy

On 21 April 2015 the Ukrainian League of Industrialists and Entrepreneurs (ULIE) hosted a formal reception in Brussels to celebrate the opening of its Representative Office in the EU. Key officials from the European Commission, the European External Action Service and members of the European Parliament involved in Ukrainian issues, as well as numerous European business leaders and heads of national business and employers associations attended the event hosted by ULIE President Mr. Anatoliy Kinakh (pictured), Head of the EU Delegation to Ukraine Ambassador Jan Tombinski and Head of the Mission of Ukraine to the EU Ambassador Kostiantyn Elisieiev.

In addition to the reception, the ULIE delegation convened a working meeting with MEPs, representatives of the European Commission and the EEAS to discuss priority issues vital for modernization and development of the Ukrainian economy.

“Ukraine must do its 'homework' to adjust the domestic economy to the conditions of the EU-Ukraine Association Agreement and strengthen the influence of the civil society in setting the quality standards and the dynamics of structural reform in the country. We will continue to focus on development of the private sector, which creates jobs and generates taxes for the budget. This is crucial in the context of the current economic downturn and the changing environment for Ukrainian enterprises foreseen in the full implementation of the EU-Ukraine DCFTA starting in 2016,” said Inakh.

According to Mr. Kinakh, at the meeting with the European partners the Ukrainian delegation initiated discussion about review of the European Neighbourhood Policy with a view to increasing EU financial support for the Ukrainian private sector.

“The current EU support package for Ukraine is around €11 billion until 2020, of which more than 3/4 are loans while the rest is made up by grant funds. However, only around 3% of these funds (€250-350 million) are envisaged for support of small and medium enterprises (SMEs) in Ukraine. Still, access even to this portion of the funds is quite problematic. European support is almost inaccessible for Ukrainian businesses, primarily because of the unrealistic terms of lending. It should be adjusted to the current realities in Ukraine,” Kinakh stressed.

The ULIE delegation requested EU endorsement and support of the implementation of a new proposed Industrial Policy for Ukraine recently adopted by the Committee on Industrial Policy and Entrepreneurship of the Ukrainian Parliament – the sole state body currently covering issues of industrial and entrepreneurial policy in Ukraine, after the Ministry of Industrial Policy was abolished and the Ministry of Economy disengaged itself from this important issue.

Also, the parties discussed Ukraine’s recent accession to Horizon 2020 and possible accession to COSME in the nearest future – pan-European programmes that open new opportunities for Ukrainian entrepreneurs both in Ukraine and in the EU.

 Additional information

A formal reception to celebrate the opening of the Representative Office of the Ukrainian League of Industrialists of Entrepreneurs in the EU took place at 18:00 at Sofitel Brussels Europe Hotel, Place Jourdan 1, Brussels, Belgium.

In addition to A. Kinakh and Ambassadors K. Yelisieiev and J. Tombinski distinguished speakers panel included:

• Ryszard Czarnecki, Vice-President, European Parliament;
• Petras Austrevicius, MEP, Head of the informal Group of Friends of Ukraine in the European Parliament;
• Dirk Schuebel, Head of Division, East Partnership Bilateral, EEAS;
• Philippe Cuisson, Ukraine Support Group, DG NEAR;
• Markus Beyrer, Director General, Businesseurope.

The ULIE Brussels office as a representation of Ukrainian business in Europe, through which it seeks to cooperate with many other business associations in Ukraine working on ensuring Ukraine’s prosperity by means of developing the domestic private sector. In particular, the representative office focusses on three key work-streams:

• B2B contacts for the Ukrainian businesses, bilateral investment and import/export facilitation;
• co-operation with EU institutions (The EU Commission, The European Parliament and The European External Action Service) on the implementation of effective policy to support industrial and entrepreneurial development in Ukraine; also participation in review of the European Neighbourhood Policy in respect of Ukraine, and;
• promotion among the Ukrainian businesses and educational institutions of EU-funded programmes and instruments available to Ukraine and the organisation of training events to encourage participation in such programmes.

 The Ukrainian League of Industrialists and Entrepreneurs (ULIE) is the largest business association in Ukraine with members ranging from large vertically integrated companies to small/medium enterprises. For more than 20 years the League’s key mission has been to promote and protect the interests of domestic businesses in Ukraine and abroad. With central offices in Kyiv, the ULIE manages 28 regional subsidiaries, 73 branches, 22 representative offices and 34 committees in Ukraine along with 22 representative offices in other countries, including one in Brussels. Today ULIE’s has embarked on its historical mission to support Ukraine’s integration into the EU’s economic market.

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