Ukraine RISK & COMPLIANCE REPORT DATE: March 2018
Ukraine RISK & COMPLIANCE REPORT DATE: March 2018 KNOWYOURCOUNTRY.COM Executive Summary - Ukraine Sanctions: EU & US Sanctions FAFT list of AML No Deficient Countries US Dept of State Money Laundering assessment Higher Risk Areas: Not on EU White list equivalent jurisdictions Corruption Index (Transparency International & W.G.I.)) World Governance Indicators (Average Score) Failed States Index (Political Issues)(Average Score) Medium Risk Areas: Compliance with FATF 40 + 9 Recommendations Major Investment Areas: Agriculture - products: grain, sugar beets, sunflower seeds, vegetables; beef, milk Industries: coal, electric power, ferrous and nonferrous metals, machinery and transport equipment, chemicals, food processing Exports - commodities: ferrous and nonferrous metals, fuel and petroleum products, chemicals, machinery and transport equipment, food products Exports - partners: Russia 23.7%, Turkey 6%, China 4.1% (2012) Imports - commodities: energy, machinery and equipment, chemicals Imports - partners: Russia 19.4%, China 10.2%, Germany 9.6%, Belarus 7.8%, Poland 7.1% (2012) 1 Investment Restrictions: Under Ukrainian law, certain types of business activity may be pursued by state-owned enterprises only. These include some natural monopolies, the rocket industry, the production of bio-ethanol, and the printing of banknotes and blank securities forms. In addition, Ukrainian law authorizes the government to set limits on foreign participation in "strategically important areas," although the wording is vague and the law is rarely used in practice. Generally, these restrictions limit the maximum permissible percentage of foreign investment into Ukrainian firms in these sectors. For example, the share of foreign investors' participation in Ukrainian publishing houses is limited to 30%. Investments into the energy sector can also be problematic.
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