Economic cooperation between Japan and Ukraine is the highest ever

Close-up of businessmen handshaking in working environment

This article discusses #economic cooperation between #Ukraine and Japan and describes various projects which were implemented during such cooperation.

Visit our website if you are interested in the #Ukrainian economy or #doing business in Ukraine.

Throughout 2015 Ukraine and Japan saw an unprecedented level of mutual cooperation. For example, the agreement between Ukraine and Japan on mutual protection and promotion of investment was signed in February 2015 and became effective in late November 2015.

Moreover, a large number of preferential loans were provided by the Japanese government to Ukraine in support of various projects in relation to implementation of deregulation reforms (approx. USD 300 million), reconstruction of damaged social infrastructure in Donetsk and Luhansk regions (approx. USD 4.2 million), purchase of medication and medical devices by Ukrainian hospitals (approx. USD 8 million), support for charities providing help to people in the zone of Anti-Terrorist Operation (approx. USD 810,000), etc. In addition, Japanese experts were involved in a joint audit of Burshtyn and Trypilska thermal power plants in relation to their modernization.

Furthermore, the Minister of Regional Development, Construction and Housing and Communal Services of Ukraine announced about ongoing negotiations with several Japanese construction companies in relation to completion of construction of the bridge over Dnipro river and building a new metro line in Kyiv.

Among the recent developments in relation to cooperation between two countries, the Government of Japan has seconded Masaru Tanaka, who is the ex-chief of economic research at Japan’s central bank, to the Ministry of Finance of Ukraine. Mr. Tanaka became the advisor of the Minister of Finance of Ukraine and will consult her in matters of reforming the financial system of Ukraine with the special focus on disposal of bad loans of national banks. Mr. Tanaka’s secondment is due to last for one year.

We note that the Minister of Finance of Ukraine has some very well-known advisers, in particular, Mr. Ivan Mikloš, the former Minister of Finance of the Slovak Republic, Dr. Chris Wales and Dr. Robert Conrad, international economy and taxation reform experts, and Dr. Arthur Laffer, who is the author of the ‘Laffer curve’ theory on correlation between the public revenues and the average tax rates and previously served as an economic adviser to Ronald Reagan and Margaret Thatcher.

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