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PRESS RELEASE

Doing Business in Ukraine: Ukraine Continues to Improve its Regulatory Environment for Entrepreneurs Despite Turmoil

October 29, 2014


The Country Reaches Top 100 Countries on the World Bank Group’s Global Ranking List

Washington, D.C., October 29, 2014 — A new World Bank Group report finds that, despite economic crisis and political upheaval, Ukraine continued to improve the regulatory framework for entrepreneurs in 2013/14. Factoring in this year’s report expansion of several indicator sets, Ukraine’s standing on the ease of doing business improved from 112th to 96th over the past year.

Doing Business 2015: Going Beyond Efficiency finds that, in the past year, important progress was recorded in the areas of registering property and paying taxes – two separate indicators for which Ukraine improved by over 25 positions and enabled considerable time reductions for entrepreneurs. To cite just one example, in 2013/14, Ukraine made it easier for entrepreneurs to pay their taxes by introducing an electronic system for filing and paying labor taxes. In light of this initiative, the number of tax payments was reduced from 28 to 5 and the time to pay taxes also reduced from 390 to 350 hours.

It is encouraging to see that, despite the ongoing crisis and urgent challenges, the authorities are undertaking long-delayed structural reforms, which move Ukraine closer towards some of the best global economies in this year’s Doing Business rankings,” said Qimiao Fan, World Bank Director for Belarus, Moldova and Ukraine. “At the same time, more needs to be done in the areas of getting electricity, trading across borders and resolving insolvency, where Ukraine ranks at the bottom in Europe and Central Asia. We stand ready to continue helping the authorities accelerate reforms and make Ukraine a better place for entrepreneurs.”


World Bank Group


For instance, it takes 277 days on average for an enterprise to connect to electricity grid in the capital city of Kyiv. This is among the highest time in the world, only five economies require more time. Similarly, the cost and time to import and export in Ukraine are among the highest in the region. For example, in Ukraine, it costs US$1,880 for an entrepreneur to export a standard container overseas, while in Albania it only costs US$745.

For the first time, Doing Business collected data for two cities in the 11 economies with a population of more than 100 million. This year’s report also expands the data in three of the 10 topics covered, with further plans to expand on five additional indicators in next year’s report. The Doing Business rankings are now based on the distance to the frontier measure. Each economy from the 189 economies measured is evaluated based on how close their business regulations are to the best global practices. A higher score indicates a more efficient business environment and stronger legal institutions.

The report finds that Singapore tops the global ranking on the ease of doing business. Joining it on the list of the top 10 economies with the most business-friendly regulatory environments are New Zealand; Hong Kong SAR, China; Denmark; the Republic of Korea; Norway; the United States; the United Kingdom; Finland; and Australia.

About the Doing Business report series

The annual World Bank Group flagship Doing Business report analyzes regulations that apply to an economy’s businesses during their life cycle, including start-up and operations, trading across borders, paying taxes, and resolving insolvency. The aggregate ease of doing business rankings are based on 10 indicators and cover 189 economies. Doing Business does not measure all aspects of the business environment that matter to firms and investors. For example, it does not measure the quality of fiscal management, other aspects of macroeconomic stability, the level of skills in the labor force, or the resilience of financial systems. Its findings have stimulated policy debates worldwide and enabled a growing body of research on how firm-level regulation relates to economic outcomes across economies. Each year the report team works to improve the methodology and to enhance their data collection, analysis and output. The project has benefited from feedback from many stakeholders over the years. With a key goal to provide an objective basis for understanding and improving the local regulatory environment for business around the world, the project goes through rigorous reviews to ensure its quality and effectiveness. This year’s report marks the 12th edition of the global Doing Business report series. For more information about the Doing Business reports, please visit doingbusiness.org and join us on doingbusiness.org/Facebook.

About the World Bank Group

The World Bank Group plays a key role in the global effort to end extreme poverty and boost shared prosperity. It consists of five institutions: the World Bank, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA); the International Finance Corporation (IFC); the Multilateral Investment Guarantee Agency (MIGA); and the International Centre for Settlement of Investment Disputes (ICSID). Working together in more than 100 countries, these institutions provide financing, advice, and other solutions that enable countries to address the most urgent challenges of development. For more information, please visit www.worldbank.org, www.miga.org, and ifc.org.


Media Contacts
In Washington DC
Nadine Ghannam
Tel : +1 (202) 473-3011
nsghannam@ifc.org
In Kyiv
Sergiy Grytsenko
Tel : +380(44) 490-6671
sgrytsenko@worldbank.org




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