Q.4.

Has the investment policy of your country becomes more

protectionists? Support you conclusions with very recent
observations from newspapers and magazines.
Along with the political instability, Ukraine was heavily hit by the sever
economics crisis in 2008/9. Due to which there was changes in the
economic policy, aiming to increase foreign direct investment. Ukraine
was further liberal economic policy with less protectionism and
more flexible in order to increase investment inflow in the country.
Reduction in the regulatory interference to foreign company. With
simplification and transparency of licensing and less legal hassle
for foreign investors to set up business in Ukraine.

To enhance the protection of foreign investments they signed the

Washington Convention of 1965 also signed the GATT with UN to
regulate tariff.

Free Trade agreement with the EU removing past protectionism

against EU nations. EU and Ukraine signed the Deep and
Comprehensive Free Trade Area (DCFTA)

However, They have increased their protectionism against Russia.

These two factors are the main cause of breakdown between these
major trading partners.
1. Conflict due to annexation of Crimea. March 2015.
2. Ukraines trade deal with Europe enforced from 1st Jan 2016 (which
was against Russias wish).
Since by signing a free trade agreement with the EU, Ukraine lost its
preferential access to its largest market, Russia (The guardian, 2016)
Ukraine is on the process of boycotting the Russian investment, even
from Bank to the mega project, they are being against Russia. Deputy
Economic Development and Trade Minister Natalya Mikolskaya said
Ukraine would restrict the import of Russian goods, the
Ukrainian economy will look to China and Turkey as well the Middle
East and Africa for new economic partners. (IBN Times, 2016)
Its a historically important moment for Ukraine as they have
opened themselves for international investment with various favorable
amendments with less protectionism policy to attract FDI. However,
their decision to completely boycott its largest and historically

important trading partner Russia might not be a good decision

sustainably. Its seems to be political agenda making less economics
sense.

Favourable Because :
After the sever 2008/9 crisis Ukrine changed drastically to
increase the foreign direct investment .so being more flexible
and liberal for investment inflow was only the concern .so they
were less protectionist .

To enhance the protection of foreign investments the Washington

Convention of 1965 on the Settlement of Investment Disputes
between States and Nationals of Other States was ratified by the
Law of Ukraine.

Regulatory interference were drastically reduced .

Simplification and transparency of liscencing and less legal

hassel for foreign investors to set up business in Ukraine.
Improvement in ranking Doing Business in Ukraine

Ukraine denied being protectionist on Tuesday as 58 countries

attacked its plan to renegotiate hundreds of tariff ceilings at the World
Trade Organization, with some warning that it could undermine the
world trading system.

http://www.reuters.com/article/us-ukraine-wtoidUSBRE89F16C20121016

However

But it is a different story with the Russia because of 2 main

factors:

1. Conflict due to annexation of Crimea. March 2015.

2. Ukraines trade deal with Europe enforced from 1st Jan 2016 (which
was against Russias wish).
Ukraine signed DCFTA with EU.Russia is against direct
relations of Ukraine with EU

Russia announced last week that it would impose tariffs on

Ukrainian goods in anticipation of a trade deal between Kiev and
the European Union coming into force Jan. 1 . Now Ukraine is
hitting back with its own restrictions on Russian goods in 2016, a
Ukrainian minister said Monday.

Deputy Economic Development and Trade Minister Natalya

Mikolskaya said Ukraine would restrict the import of Russian
goods, but did not provide details. To make up for the loss in
trade with Russia, the Ukrainian economy will look to China and
Turkey as well the Middle East and Africa for new economic
partners.
International Business times .
http://www.ibtimes.com/new-russia-ukraine-economic-war-over-importbans-expected-2016-2241465
To conclude
Its great they they have opened themselves for
international investment with various favourable
amendment in protectionism policy to attract FDI.
However , their decision to completely bycott its largest
and historically important trading partner Russia might
not be a good decision sustainabblly . Its seems to be
political agenda making less economics sense .

ideologically driven choice to sever all ties with Russia, the

country that has historically been its major trading partner and
chief investor. By tearing up contracts with Russia in 2014,
Ukraines defence and aviation industries lost 80% of their
income. Once the pride of Kiev, airline manufacturer Antonov
was liquidated and it assets transferred to another state-owned
conglomerate.

.since by signing a free trade agreement with the EU, Ukraine lost
its preferential access to its largest market, Russia.
The Guardian :
https://www.theguardian.com/world/2016/mar/09/ukraine-needs-russianicolai-petro

Ukraine now has unique chance to enter biggest consumer market in

the world--European market with over 500 million customers.Ukraine
has good infrastructure and ability to modernize goods in accordance
with European standards and quality.
http://www.neweasterneurope.eu/interviews/1860-ukraine-signed-thefta-with-the-eu-now-what