Low demand and unfavorable political situation are the major obstacles for the development of industrial enterprises in Ukraine as of early 2015. This was demonstrated by the results of the quarterly business survey in which Ukrainian businesses assessed the 4th quarter of 2014. The survey was conducted by the Institute for Economic Research and Policy Consulting and presented in the special “Business Climate and Reforms –Ukrainian Business Expectations in 2015” report.
Ukrainian small and medium enterprises are poorly represented on the European market and expect no major benefits from the establishment of the Free Trade Area between Ukraine and the European Union. At the same time, they are less wary of risks associated with the trade liberalization with the EU. In particular, small and medium businesses are less likely than big ones to suffer from sanctions from Russia and from a possible cancellation of free trade between Ukraine and the Russian Federation.
Most Ukrainian industrial enterprises support the European direction in the country’s economic integration. This has been shown by the survey of the Kyiv based Institute for Economic Research and Policy Consulting.The percentage of the enterprises that opt for economic integration with Russia and other CIS countries has shrunk almost three times compared to 2013. Yet, some in the Ukrainian industrial sector are concerned about possible Russian sanctions in case Ukraine pursues closer trade relationships with the EU.
Unfavorable economic and political situation are the major obstacles for banking in Ukraine. This has been found by the survey of Ukrainian banks conducted by the Institute for Economic Research and Policy Consulting (IER) following the 2nd quarter of 2014.