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Euro 2012 Projects are the Main Part of Ukraine-China 4 Billion USD Investment Agreements

September 3, 2010

KYIV, Ukraine, September 3, 2010 /PRNewswire/ — The main result of the
state visit of the President of Ukraine, Viktor Yanukovych, to the People’s
Republic of China
is China’s commitment to invest more than 4 billion USD in
the infrastructure projects in Ukraine. The projects for EURO 2012 have been
the focus of the investment agreements signed during the state visit.

The major investment projects include 1 billion USD for the high-speed
railway road to Kyiv-Boryspil airport, the country’s main air gateway and 700
mln USD
for the construction of a steam-gas plant in Crimea. Additionally,
China is going to provide Ukraine with an oil off-shore drilling station
worth 200 mln USD according to a leasing agreement.

The construction of the high-speed railway connecting the main Ukrainian
airport to the rail station comes in a framework of the previously signed
agreement between China National Machinery Industry Complete Engineering
Corporation (CMCEC) and the authorities of Kyiv-Boryspil airport. Among other
Chinese investors are China Road Bridge Corporation and China Eximbank.

As the attention of many European countries towards Ukraine’s
preparations for the Euro-2012 Football Championship is increasing, the
Ukrainian government is making additional efforts to attract foreign
investors. To improve the investment climate, the Ukrainian government has
approved new legislation and launched a campaign to curb corruption. During
the recent several months, a number of senior officials were arrested on
corruption charges.

In July of this year, law on public-private partnership was adopted.
According to the law, foreign businesses, which are involved in
public-private partnerships in Ukraine, enjoy the national regime for
investment and business activities and have additional guarantees protecting
their investment.

After the financial crisis of 2008-2009, Ukraine’s economy has started
reviving. Ukraine’s GDP has grown by 6.3% in the first half of 2010. There is
also increase in industrial production, cargo turnover and construction. The
European Bank for Reconstruction and Development confirmed its forecast for
Ukraine’s GDP growth at 4% in 2010, and improved it for 2011 from 4% to 4.1%.
Inflation forecast for 2010 is 11.4% and 11% for 2011. Budget deficit will
decrease to 6% of the GDP in 2010, which is an improvement in comparison to
6.4% of the GDP in 2009.

SOURCE Press Office of the President of Ukraine


Source: newswire



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