Early Signs of Economic Recovery in Ukraine, but Conditions Remain Challenging

WASHINGTON -

Over two hundred international experts on Ukraine gathered in Washington, D.C. and Kyiv on October 15th 2009 to evaluate the country’s progress in recovering from the recent global liquidity crisis. The first annual International Forum on the Economic Development of Ukraine ( www.edfukraine.com) concluded that while there are signs of an economic recovery in Ukraine, conditions will remain challenging in the near future.

(Photo: www.newscom.com/cgi-bin/prnh/20091019/CL94428 )

At the onset of the international crisis, Ukraine had been enjoying strong growth. As the crisis rapidly unfolded across the globe in the fall of 2008, it interrupted the growth cycle of Ukraine and many other emerging markets. Amidst extreme global economic difficulties, Ukraine suffered one of the deepest economic downturns and sharpest currency depreciations during the most severe phases of the crisis. Although the pace of the economic slowdown in Ukraine has recently decelerated, overall economic conditions remain challenging.

Respected economists, business leaders, and senior officials from the U.S. and Ukrainian government gathered at the Newseum in Washington, D.C. and the World Bank Headquarters in Kyiv to review progress and setbacks within the challenging economic environment. With one of the largest gatherings of Ukraine and regional experts on hand, economic, political and business leaders in both Ukraine and the U.S. conferred over a video teleconference to discuss the financial crisis in Ukraine and the government response.

Also present for the discussion in Washington were Ukrainian Vice Prime Minister Hryhoriy Nemyria and Minister of Economy Bohdan Danylyshyn, along with a 50-person strong Ukrainian Trade and Investment Delegation of business and government officials to the U.S. On the Kyiv side, leading international financial and development officials from the IMF, EBRD, EC, the World Bank and others engaged in a meaningful dialogue on steps needed to move forward beyond the crisis.

A number of panels and keynote addresses were scheduled to cover the most pressing issues related to the crisis. Among the topics discussed were the impact of the global liquidity crisis on Ukraine and the road to recovery, as well as causes of the crisis and potential solutions, including measures to revive economic development in Ukraine. Participants also discussed Ukraine’s response to the current crisis, perspectives for 2010, and US support for global economic recovery and to Ukraine. According to Dr. Edilberto Segura, Chairman of the Board of The Bleyzer Foundation, the longer term economic outlook for Ukraine is still bright, but significant improvements in the business environment are needed to promote investments as the new source of economic growth.

The event was hosted by the U.S. - Ukraine Business Council and sponsored by SigmaBleyzer and The Bleyzer Foundation.

www.edfukraine.com www.usubc.org www.SigmaBleyzer.com www.BleyzerFoundation.org

Source: U.S. - Ukraine Business Council

Morgan Williams President of U.S. - Ukraine Business Council (USUBC), +1-202-437-4707, mwilliams at usubc.org; or Mark Rudkin, Director of Marketing of SigmaBleyzer Investment Group, L.L.C., +1-713-621-3111, msrudkin at sigmableyzer.com