Archive 2011

• 21.11.2011

  Quantitative Assessment of Ukraine’s Regional Integration Options: DCFTA with European Union vs. Customs Union with Russia, Belarus and Kazakhstan

  (Code:PP_05_2011)

  Foreign trade plays a crucial role in Ukraine’s economy, amounting to over 100% of GDP in 2010. Despite this impressive number, there is still much room for expansion of foreign trade, which would in turn lead to higher economic growth and welfare. Thus, Ukraine’ foreign trade policy should pursue the goal of increasing the exchange of goods and services with other countries.

  Authors:  Movchan Veronika, Джуччі Рікардо
  Tags:  German Advisory Group
• 24.10.2011

  Legal and Economic Assessment of the Impact of the Draft Law on Domestic Trade – Does limiting Food Trade help the Poor?

  (Code:AgPP_36)

  The draft law “on domestic trade” has been developed by the Ministry of Economic Development and Trade aiming at regulating domestic trade and trade-related activities in Ukraine. It is based on the Decree of the Cabinet of Ministers #632 from June 24, 2009 outlining a State Program on Domestic Trade Development until 2012. The draft law passed several public hearings until July 2011 and is expected to be delivered to the Ukrainian Parliament by the Cabinet of Ministers in the second half of 2011.

  Authors:  Nivievskyi Oleg, Kandul Serhiy, Strubenhoff Heinz-Wilhelm, Поліводський Олександр, Погребна Анна, Huige Marinus, Rehbock Wolfram
  Tags:  Agricultural dialogue
• 04.06.2011

  Proposals to De-shadow Ukraine’s Economy

  (Code:PP_04_2011)

  In Ukraine, a considerable degree of economic activity takes place in the “shadow”, i.e. outside the formal economy. While precise estimates are difficult to obtain and thus vary widely, national experts put this number at around 30% of official GDP. This poses major economic problems: A lack of funds for the state and no level playing field for companies.

  Authors:  Ehrke Jurgen, Betliy Oleksandra, Кірхнер Роберт, Джуччі Рікардо
  Tags:  German Advisory Group
• 10.05.2011

  State monopoly in agricultural exports: the game is not worth a candle

  (Code:AgPP_35)

  A Draft Law #8053 as of February 2, 2010 “On amendments to the Law of Ukraine “On State Support to Agriculture” (as to the peculiarities of exports of products subject to state price regulation)” effectively aims at granting to the State a monopoly of the export of various agricultural products. Economic theory and worldwide experience, however, warn about possible devastating consequences for the sector’s growth.

  Authors:  Strubenhoff Heinz-Wilhelm, Kandul Serhiy, Nivievskyi Oleg
  Tags:  Agricultural dialogue
• 01.05.2011

  Non-Conventional Gas Regulation in Europe: Implications for Ukraine

  (Code:PP_03_2011)

  Non-conventional gas may become a significant part of national energy supply in Ukraine in the next decades. Thereby, this type of resource can be applied as complement to national conventional natural gas and may be used as a substitute in the long run.

  Authors:  Naumenko Dmytro, Майсснер Франк
  Tags:  German Advisory Group
• 10.04.2011

  Why agricultural producers lose huge market opportunities with state monopolies – International experience and Ukrainian evidence

  (Code:AgPP_34)

  Two draft laws came out to the public in February 2011 that might effectively turn into September 11 for the agriculture and food sectors of Ukraine in case at least one of the two comes into the force. A Draft Law #8053 as of February 2, 2011 “On amendments to the Law of Ukraine “On State Support to Agriculture” (as to the peculiarities of exports of products subject to state price regulation)” and a Draft Law #8163 as of February 25, 2011 “On amendments to the Law of Ukraine “On Grain and Grain Markets” (concerning the grain exports)” effectively aim at granting to the State a monopoly of the export of various agricultural products in the former and of the grain in the latter case.

  Authors:  Nivievskyi Oleg, Kandul Serhiy, Strubenhoff Heinz-Wilhelm
  Tags:  Agricultural dialogue
• 01.04.2011

  Raw sugar toll refining – a sensible policy?

  (Code:AgPP_33)

  Raw sugar toll processing has been extensively used in international trade. Under tolling, raw sugar is imported duty free, refined and then re-exported as white sugar or in sugar-containing products. This creates a trade that does not harm the essential interests of domestic producers of similar goods. Raw sugar toll refining is especially pertinent to the countries with highly protected sugar markets, like the USA, EU or Russia. For these countries toll processing is mainly aimed at compensating domestic sugar-contained products producers for high domestic sugar prices resulting from expensive sugar market policies; for sugar producers, though, toll refining facilitates better use of processing capacities mainly after the relatively short campaigns s of sugar beet processing.

  Authors:  Nivievskyi Oleg, Kandul Serhiy, Kuznetsova Anna, Strubenhoff Heinz-Wilhelm
  Tags:  Agricultural dialogue
• 01.04.2011

  The Value of Farmland - Expected Farmland Prices in Ukraine after lifting the Moratorium on Farmland Sales

  (Code:AgPP_32)

  The absence of a fully-fledged farmland market has been considered as a stumbling block in developing of the agricultural sector in Ukraine. The discussion about the moratorium on farmland sales in Ukraine seems to come to an end. The new government in many official statements declared its commitment to lift the moratorium on farmland trade by 2012. This decision would affect the value of farmland that in turn will impact the productivity and future growth prospective in the sector.

  Authors:  Nivievskyi Oleg, Kandul Serhiy
  Tags:  Agricultural dialogue
• 13.03.2011

  The Banking Sector in Ukraine: Past Developments and Future Challenges

  (Code:PP_02_2011)

  Ukraine’s banking sector has followed a “boom-and-bust” cycle over the last couple of years. Rapidly growing loans -often denominated in foreign currency (FX) and funded by cheap shortterm external borrowings- led to a build-up of macroeconomic and sector-specific vulnerabilities. With the arrival of the global financial crisis in late 2008, the bubble burst and the sector was confronted with severe liquidity and solvency problems. This resulted in a credit crunch, which put additional stress on the real sector, which entered into a severe recession. Quick and determined policy action by the authorities, supported by international financial institutions, prevented a complete meltdown, and calmed the situation.

  Authors:  Kravchuk Vitaliy, Джуччі Рікардо, Кірхнер Роберт, Cyrus de la Rubia
  Tags:  German Advisory Group
• 13.02.2011

  Pension reform in Ukraine. Comments on the main features of the current Draft Law

  (Code:PP_01_2011)

  Ukraine’s pension system is in urgent need of reform. Its first pillar, a compulsory payas-you-go system, generates severe deficits, which have to be closed by transfers from the central Government. In 2010, the Pension Fund’s deficit amounted to 2.5% of GDP. Consequently, the pension system is to a large extent responsible for the strained fiscal situation in the country. In order to reinstall fiscal stability and to stabilise state debt (in relation to GDP), a rather topical issue throughout the world, a reform of the pension system is indispensable.

  Authors:  Betliy Oleksandra, Джуччі Рікардо
  Tags:  German Advisory Group