What does an investor need in Ukraine?

In the Ukrainian political vocabulary, there is a word that sounds like an incantation — “harmonization.” It is repeated by officials, experts, investors, and donors. They mean the convergence of Ukrainian rules with European ones. For an investor, this is much simpler. They need to understand that the rules in Ukraine work as predictably as they do in EU countries.

When rules are clear, money becomes cheaper and “longer.” Banks lend more actively, competition arises between financial institutions, and companies gain more financing options. For business, this is not abstract politics, but concrete economics.

An investor checks the first thing very pragmatically: what happens when a bank falls into crisis. After the 2008 financial crisis, Europe formed a simple rule. If a bank fails, the losses are first borne by its owners and major creditors. The state does not rescue the bank with taxpayers’ money. For an investor, this is a signal that the system operates according to a clear logic even in a stressful situation.

The next question is trust in bank deposits. People usually only look at the amount guaranteed by the state. For the stability of the system, other things are important: how quickly the money is paid out, whether the mechanism works automatically, and exactly who it protects. If depositors trust the banks, they keep their money there. For banks, this is a stable resource, and for business, it means more loans.

Another topic that previously seemed technical is the cybersecurity of the financial system. Modern banks operate through digital platforms; therefore, Europe has introduced uniform requirements for system protection, security testing, and the oversight of IT contractors. This is not a matter of technology for the sake of technology. It is a matter of trust in the financial infrastructure.

The same applies to the payment system. Ukraine has already taken an important step in its modernization, but European rules are constantly being updated. This concerns the fight against fraud, transparent commissions, and clear responsibility for financial institutions. For business, this means fewer losses and clear rules of the game in the payment market.

A separate story is the capital market. In Ukraine, it is often believed that if a law is passed, the market has already been created. In reality, an investor looks at much simpler things. Whether securities can be easily bought and sold. Whether there is transparent corporate reporting. Whether supervision works and whether manipulation is punished. And most importantly — whether any corporate dispute turns into a multi-year judicial soap opera.

The most painful topic for an investor is the rights of minority shareholders. Investments rarely come in large packages all at once. Often, it is a gradual process: a small stake, then an increase. If there is a risk of share dilution, asset stripping, or protracted corporate conflicts, the investor simply factors this risk into the price or refuses the deal altogether.

War creates an obvious risk for any investment. But alongside it exists another — legal risk. And it is precisely this risk that can be reduced even during the war. When rules are followed consistently, investors are ready to work even under difficult conditions.

International loans help keep the economy afloat. But a loan is a debt that must be repaid. Investments work differently. This is money that enters companies and remains in the country for years if the rules of the game are stable.

That is why true harmonization is not about the appearance of new “correct” terms in legislation. It begins where the rules are implemented without exceptions. For an investor, this is the main signal that the country is ready for “long money.”

The author — Volodymyr Klymenko, Vice Chair for Regional Development and Investment-Grant Policy of Ukraine