After attaining independence in 1991, Ukraine undertook inconsistent reforms toward becoming an efficient market-based economy. USAID supports a competitive economy in Ukraine in which small and medium-size businesses are free to achieve their potential. With USAID support, the Government of Ukraine recently achieved several milestones, including introducing an electronic disclosure and reporting system for publicly listed companies, creating institutions to facilitate transparent and efficient asset trading, and developing a bond market.
USAID works with Ukrainians to build a strong financial sector in Ukraine regulated by politically and financially independent entities, supported by industry best practices, integrated with international standards, and trusted by Ukraine’s citizens and the investor community.
USAID programs improve the business climate at the national and local levels to encourage domestic and foreign trade and investment. By streamlining laws and regulations that contribute to the cost of doing business, USAID fosters a competitive Ukrainian economy.
PRIVATE SECTOR DEVELOPMENT:
Commercial Law Reform Project
Commercial Law Center
October 16, 2011 – July 15, 2016
The USAID Commercial Law Reform project is helping the Government of Ukraine draft laws and secondary legislation related to public-private partnerships, taxation, bankruptcy, registration of companies, and other areas critical to economic development. CLC was launched in 2003 as a legacy of previous USAID activities that helped the Government of Ukraine develop modern legislation and market-oriented policies to replace Soviet-style laws and outdated command economy regulations.
Business Investments and Loans
Western NIS Enterprise Fund/Horizon Capital
September 21, 1994 – August 26, 2016
USAID created the Western NIS Enterprise Fund (WNISEF), a regional private equity fund for Ukraine and Moldova, in 1994, capitalizing it with $150 million. For two decades WNISEF invested in small and medium-sized companies in the region. In 2014, WNISEF completed its commercial investment activities and USAID directed remaining funds toward promoting policies and practices that support private sector development. The focus areas include economic leadership, local economic development, social investments, and export promotion.
Financial Management Capacity Development Initiative (FMCDI)
Implementer: Financial Markets International, Inc. (FMI)
September 26, 2014 – September 25, 2016
To give local partners in Ukraine, Moldova and Belarus the financial and operational capabilities to manage awards and implement programs funded by USAID and other donors, FMCDI enhances the quality and range of audit and consulting services available to local organizations.
The long/mid-term impacts of this award include:1) closer interaction between regional missions and local implementing partners, many of which face institutional capacity challenges; 2) stronger relationships between regional missions and local non-government partners; 3) a sustainable mechanism for building capacity of local organizations; and 4) increased range and quality of financial management services available on the local market.
Leadership in Economic Governance (LEG/LEV)
East Europe Foundation (EEF), in partnership with the Institute for Economic Research and Policy Consulting (IER), CASE Ukraine (CASE) and the Kyiv Economics Institute under the Kyiv School of Economics (KEI)
December 19, 2014 – December 18, 2019
The Leadership in Economic Governance activity seeks to improve the country’s business enabling environment by identifying local organizations with recognized technical proficiency and knowledge and then strengthening their capacity to identify and correct policy weaknesses and motivate concrete institutional reform. The activity has three objectives: 1) identify legal, regulatory and administrative measures that improve the business environment for Ukrainian small and medium enterprises (SME); 2) support central and local governments in developing, promoting and implementing effective pro-SME reforms; and, 3) coordinate with and support stakeholders in the business community to advocate for economically sound and fiscally responsible reforms.
International Partnership for Financial Sector Stability
SEGURA Consulting LLC
December 19, 2015 – December 20, 2016
USAID’s Regional Economic Growth Project (REG) is a covers Albania, Armenia, Azerbaijan, Belarus, Bosnia & Herzegovina, Georgia, Kosovo, Macedonia, Moldova, Serbia, Ukraine. REG supports inclusive and sustainable economic growth in the E&E region by integrating and harmonizing regional markets. Core activities improve competitiveness and increase financial sector stability by advocating regional economic integration and building economic linkages to EU and other markets. REG provides a cost-effective platform for demand-driven technical assistance and teaches private sector skills and financial sector management and regulation best practices. In Ukraine, REG supports: 1) Strategic communications to rebuild trust in financial system; 2) Development of non-bank financial sector and alternative financing instruments; 3) More effective financial sector supervision and regulation; and 4) Digital finance technology and innovation to restore formal financial transactions in underserved areas.
Ukraine Trade Policy Program
April 6, 2015 – April 5, 2017
The goal of the USAID Ukraine Trade Policy Program (UTPP) is to expand the capacity for Ukraine's private sector to take advantage of export opportunities and promote the diversification of Ukraine’s export markets, while also strengthening Ukraine’s ability to prevent and address foreign trade pressures. To achieve this, the program works to 1) expand Ukraine’s capacity to utilize tools available through the WTO system, 2) improve communication and coordination on WTO issues both within the GOU and with external stakeholders, and 3) assess and improve Ukraine’s WTO compliance. Activities include short and long-term training for public and private stakeholders, direct expert support and consultation, and technical assistance to develop informational tools, training materials and procedures.
Customs Reform Activity
May 23, 2016 - May 22, 2018
The Customs Reform Activity reforms and modernizes customs processes and related new trade facilitation and compliance programs in partnership with the Ministry of Finance and the State Fiscal Service of Ukraine. The program includes a pilot intended to modernize the customs functions of the Government of Ukraine in up to three customs clearance zones to demonstrate GOU compliance with European Union customs and border standards and show that eliminating rampant customs service corruption will increase government revenue. Ultimately, the pilot will expedite trade, facilitate access to new markets for Ukrainian goods, and open Ukrainian markets to Western imports.
Last updated: July 06, 2016