Investors Are Positive About Tymoshenko’s Government
January 10, 2008
The appointment of Yulia Tymoshenko to the post of Prime Minister of Ukraine has caused generally positive expectations on the part of investors as she remains in the memory of stock market participants owing to the fair privatization of Kryvorizhstal.
A number of enterprises have gathered in Ukraine, which lose their investment attractiveness every year (Ukrtelecom). In addition, there are some that will never be able to start efficient operation without private investments, including the coal mining sector.
The rosiest prospects linked with the disappearance of political risks are enjoyed by energy-generating companies, and in view of supposed individual privatization – by oblenerhos (regional power-supplying companies).
At the same time, in the experts’ opinion, the appointment of Y. Tymoshenko may have negative consequences for metallurgists. Firstly, because most of the assets in the sector belong to the ‘new opposition’, and secondly, due to the possibility of hryvnia revaluation, which will have a negative impact on other exporters as well.
The main issues Y. Tymoshenko will have to resolve will be the following: deficit of investments, high inflation and the issues of privatization. Investment deficit in key sectors is closely connected with the questions of privatization and reprivatization, the new government has to be maximally clear in drafting the list of enterprises to which it has claims, and carry out privatization of the objects waiting for it as soon as possible and in the most transparent way.
As far as inflation is concerned, in the opinion of experts, under a tougher social policy and maximum cooperation with the NBU it may be brought back within reasonable bounds already in the next year.
It should be reminded that on Tuesday, December 18, the Verkhovna Rada of Ukraine voted for appointment of Y. Tymoshenko to the post of Prime Minister of Ukraine. Such decision received the votes of 226 people’s deputies. A little later, the parliament adopted a Resolution, according to which composition of the new Cabinet of Ministers was approved.
Tags: politics
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