Ukraine's Investment Reform to Attract USD 80 Billion Before 2014

KYIV, Ukraine, April 8, 2011 - Implementation of investment reform in Ukraine is expected to
increase the amount of investments up to USD 80 billion within the next three
years, stated Vladyslav Kaskiv, head of the State Agency for Investment and
National Projects Management, at the public presentation of the Investment
Reform.

By increasing amount of investments, Ukrainian officials
expect to raise the country's ratings in World Bank's Doing Business to 100th
position (Ukraine was rated as 145 in 2010) and in Global Competitiveness
Report of the World Economic Forum - to 50th position (currently Ukraine
ranks 82). The reform includes restructuring of Ukraine's tax and customs
authorities.

The Ukrainian President Viktor Yanukovych, who also attended
the presentation, has reminded that Ukrainian businesses are unsatisfied with
the performance of state tax and customs authorities. He voiced the main
concerns of the business community: untimely VAT refund, issue with
simplified tax system for SMEs, inefficient countering of smuggling, etc.

"In order to address the aforementioned issues I have ordered
the government to elaborate a program to reform the State Tax Service and
State Customs Service," stated Viktor Yanukovych, according to his official
Web site. Under the conditions of the reform, state supervising bodies'
amenability to their unlawful actions will be considerably increased.
Moreover, issues within customs legislation (corruption within customs
authorities, holdups of products at the border, etc.) would be eliminated
with adoption of new customs code. As far as adaptation of Ukrainian
businesses to the new tax legislation, the new tax code foresees a six months
transition period, during which penalties for violations of tax legislation
will be applied but at a symbolic amount of 1 hryvnia (approx. USD 0.13).

According to the program of economic reforms in Ukraine for
2010 - 2014 the government will form a transparent market of agricultural
land before the end of 2012.

The Committee on Economic Reforms has developed a program,
according to the President's order to restore economic growth and
modernization of economy in Ukraine. The reforms are aimed at building a
modern, stable, open and globally competitive economy, professional and
effective governance, and ultimately - to increase the welfare of Ukrainian
citizens, according to the official Web site of the President.

For more information, please contact Maryna Khorunzha, +380443324784, news at wnu-ukraine.com, Project Manager at Worldwide News Ukraine