In October – November 2012 InvestUkraine, with support of USAID Link project together with Ivano-Frankivsk Regional Center for Investment and Development as well as other regional centers conducted the survey among foreign investors doing business in Ukraine and Precarpathian region in particular.

Questionnaires were sent to more than 1200 companies operating in Ukraine including 60 in Ivano-Frankivsk region. Number of completed questionnaires amounted to 131 in total over Ukraine and 13 in Ivano-Frankivsk region. It should be noted that the most active investors were in Ternopil and Dnipropetrovsk region.

Foreign investment companies that participated in the survey were from such countries as Russia, Norway, Serbia, Czech Republic, Belarus, Lithuania, Poland, Switzerland, Sweden, Austria, Germany, Moldova, Canada, USA, France, Cyprus, Turkey, Israel, Denmark, Bulgaria, the Netherlands, Hungary, the UK, Belgium, Italy, Slovakia, Holland, Portugal. Foreign investments attracted in companies operating in Precarpathian region that participated in the survey were from such countries as Denmark, Italy, Hungary, USA, Cyprus and Sweden.

In the courseof the survey companies wereaskedto identify main problems that arise during the economic activity. According to the results of the survey was determined the rating of the most common problems faced by foreign investors in Ukraine.

According to the rating, the main problem of foreign investors in Ukraine is relations with tax authorities (first place) - 22.8% of respondents. Second and third places are shared by questions related to audits and legislative/regulatory frameworkfaced by 14.5% of foreign investors.  Issues connected with land matters constitute special concern for11.8% of respondents (fourth place in the rating). In fifth place - relations with customs authorities - 11%.Licensing and permission procedures are the matter of dissatisfaction for 10.3% of questioned investors, while registration procedures - 9.5% (sixth and seventh places). Moreover, 5.7% of respondents indicated that they are also dealing with “Other” problems, such as raids, high cost for raw materials, etc.

     Graph 1. Rating of summary results concerning problematic issues faced by foreign investors in Ukraine

In comparison with Ukrainian rating, indexes of problematic issues faced by foreign investors in Ivano-Frankivsk region are slightly different. Thus, in the first place among the problems for foreign investor in the region areissues connected with audit and land matters (20% of respondents). The second place, but not first, as in Ukrainian rating, are problems connected with tax authorities relations (16% of respondents). In two stages above on the third place are relations with customs authorities (13% of respondents). Fourth place belongs toproblems concerning licensing and permission procedures (10% of respondents). Only on fifth place, as opposed to second place in the Ukrainian rating of problems are questions related tolegislative/regulatory framework (9% of respondents), the least problematic issues for foreign investors in our region are registration procedures (7% of respondents) and raids, high cost for raw materials, etc. (5.3%) - sixth and seventh places.

 Graph 2. Rating of summary results concerning problematic issues faced by foreign investors in Ivano-Frankivsk region

At the same time, participants of the survey could not refrain from noting positive aspects of doing business in Ukraine. In particular, most foreign companies appreciate skilled and relatively low-cost labour, as well as high potential and perspective of national market. Among other advantages of Ukraine the respondents also stated: beneficial geographical location and logistics of Ukraine, access to raw materials, support from national and regional authorities.

Among the positive elements of foreign investors’ activity in Ivano-Frankivsk region were mentioned the stability of demand, availability of relatively low-cost labour, implementation of new technologies into production.