Cabinet projects 2% economy growth in 2016 / Photo from UNIAN
The Ukrainian economy is expected to grow 2% in 2016, Prime Minister of Ukraine Arseniy Yatsenyuk said during the "10 Minutes with the Prime Minister" talk show, on Sunday, October 25, the government’s press service reported.
"We forecast that in 2016 the Ukrainian economy will grow by 2%," Yatsenyuk said.
The Prime Minister reminded that the agreement on a free trade zone between Ukraine and the European Union would become effective from January 1, 2016.
"It will be a very powerful incentive to ensure that the Ukrainian economy becomes competitive, and foreign investment comes to Ukraine," he said.
Yatsenyuk noted that together with German Chancellor Angela Merkel he opened an important Ukraine-Germany business conference on October 23.
"Over the past year and a half, German businesses have not left Ukraine, but, on the contrary, are willing to continue investing in Ukraine," Yatsenyuk said.
Read alsoUkraine, EBRD sign loan agreement for $300 mln to finance gas purchasesThe key area of German investment in the Ukrainian economy is transport infrastructure, according to Yatsenyuk. He said that the government had already started negotiations with Germany-based Siemens regarding the upgrade of the Ukrainian railway rolling stock capacities.
The agricultural sector is another important area of German investment.
"We need investment in order to obtain new and efficient equipment. That is why we are negotiating to unleash the financial assistance to Ukraine through Hermes company, which will focus on lending to Ukrainian farmers to purchase German equipment," the prime minister said.
Yatsenyuk said that he also urged German companies to invest in the Ukrainian gas transportation system (GTS).
We have adopted the relevant legislation, and there are opportunities for German energy companies to enter the Ukrainian energy system and operate the Ukrainian GTS jointly with us, as well as the storage facilities," Yatsenyuk said.
Read alsoUkraine's agriculture ministry forecasts wheat exports at 16 mln tonnesThe prime minister also noted that Germany considers Ukraine as one of the key countries for investment in the field of energy efficiency and energy saving. Yatsenyuk emphasized that it was made possible "due to the reforms in the energy sector that we have implemented, including the reforms in pricing and tariff setting for energy resources within the framework of operating systems of energy monopolies."
Yatsenyuk said, German investment in [Ukraine's] energy efficiency means new boilers, insulation and technologies that help save energy resources and allow for lower bills for utility services.
Read alsoKyiv and Berlin create Ukraine-Germany Chamber of Commerce"Our economic cooperation with Germany is crucial. Germany is a leader in the EU’s economic development. And, despite all the existing difficulties in the EU and in Germany, including those related to the refugee crisis, losses of the EU member states emanating from sanctions imposed against the Russian Federation, German Chancellor Angela Merkel supports the Ukrainian people," Yatsenyuk said.
The Prime Minister also noted that U.S. Secretary of Commerce Penny Pritzker is expected to arrive in Kyiv on October 26. The purpose of the visit is "to attract American investment in the Ukrainian economy."