**Investing in Wartime Ukraine: A Nuanced Understanding of Risk is Required**
As the world’s largest business organization, the International Chamber of Commerce (ICC), prepares to attend the upcoming Ukraine Recovery Conference (URC) in Rome, its Secretary General, John Denton, emphasizes the importance of investing in Ukraine despite the ongoing war. In a recent interview with the Kyiv Independent, Denton shared his insights on how businesses can navigate the risks associated with investing in Ukraine and why it’s worth doing so.
**A Challenging but Vibrant Economy**
Denton acknowledges that Ukraine’s business climate is indeed challenging, but notes that there are different opportunities depending on the region. He highlights the vibrancy of western Ukraine, where businesses are still operational despite the war. However, he also emphasizes the need to focus on more challenged regions and provide support to those who are struggling.
**The Importance of a Strong Private Sector**
Denton stresses that for Ukraine’s recovery to succeed, a strong private sector is essential. He believes that access to global markets is critical in helping Ukraine rebuild its economy. To achieve this, Denton proposes cutting arbitration costs for foreign investors involved in reconstruction-related disputes in Ukraine.
**Breaking Down Barriers to Investment**
The ICC Secretary General identifies several barriers to investment in Ukraine, including the ongoing war, issues with the application of the rule of law, and a perception of corruption. He suggests that these challenges can be addressed by providing clear investment frameworks and articulating key priorities for investment.
**Encouraging Investment and Reconstruction**
Despite the risks involved, Denton encourages investors to consider investing in Ukraine now, rather than waiting until the war ends. He believes that this approach will help maintain morale and keep businesses running, which is essential for the country’s recovery. The ICC plans to discuss these issues at the URC conference, focusing on creating a roadmap to remove barriers to private sector engagement.
**A Nuanced Understanding of Risk**
Denton emphasizes the need for a nuanced understanding of risk when investing in Ukraine. He suggests that this approach will help investors make informed decisions and navigate the challenges associated with investing in a war-torn country.
**Conclusion**
Investing in wartime Ukraine requires a deep understanding of the risks involved, but it is also worth doing so. The ICC’s efforts to cut arbitration costs and encourage investment are steps in the right direction. By working together, the public and private sectors can create an ecosystem that promotes confidence and growth, ultimately contributing to Ukraine’s recovery.
**Note**
This article was written by Dominic, the business reporter for the Kyiv Independent. He has written for several publications, including the Financial Times and Radio Free Europe/Liberty. To stay up-to-date with the latest news from Ukraine, please consider becoming a member of the Kyiv Independent.
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