Russia
understand the financial policy of the
state. Although all companies with foreign investments in Ukraine are profitable, their owners for two years do not
have access to their capital. National
Bank does not allow Ukrainian producers
to buy foreign currency for the payment
of dividends. As a result, the investors
simply lose [the access to] money here,”
Khomenko explained.
A similar opinion is expressed by representatives of local offices of foreign
producers. According to them, amid very
tough budget policy and the possibility
of full default of the Ukraine economy,
government has to apply to very strict
measures in 2014 and still did not cancell
them now.
“Restrictions from National Bank
for companies to getting currency seems
pointless, as struggling against inflation,
regulator is killing any attempts for the
development of the country’s economy.
Ukraine should return fundamental principle of the inviolability and free movement of capital, as soon as possible, as
today foreign business are not even considering any further investments,” commented local market participant who
wished to stay unnamed.
Meanwhile, representatives of UPCA
also complain that any development of
Ukraine analogues of foreign raw materials is hampered with the high interest
rates on bank loans which are equal to
25-30 percent. As the result, organization
forecasts that situation in this area will
not get better in the foreseeable future, at
least until improvement of general situation in country’s economy.
Call for reforms
Representatives of UPCA believe that
to improve the situation at the domestic
coating market government should apply to several measures to stimulate domestic demand and establish some first
export supplies.
According to Khomenko Ukraine today should look to the experiences of
Japan, the U.S, Germany and some other
countries who in times of recession supported manufacturers through reduction
of taxation by 7-10 percent as well as
cutting imported tariffs on equipment
and technologies.
At the same time with the support
of UPCA’s experts in 2013 the Ukraine
coating industry has adopted European
standards on water-dispersion coatings in
part thanks to the created free trade zone
with the European Union some Ukraine
coatings producers has been approved to
export to Europe.
So far, the volume of supplies is miser-
able and may bring overall export to 1
percent -2 percent in the structure of sales
of Ukraine coating producers. However,
Khomenko believes in the future export
deliveries may play quite an important
role in terms of the development of the
country’s industry, even though he said
export should not be considered as a pan-
acea for Ukraine coating manufacturers
to deal with problems.
Development of export becomes especially hard today as Ukraine producers
mostly focus on the production of the
cheapest products, which often have poor
ecological conditions.
“With the tightening of ecological
standards in Western countries some
imported components may become
more expensive, so it is hard to speak
about development of export supplies
from Ukraine. At the same time, it is
necessary to understand that manufacturing of environmentally friendly
coatings is more expensive, while its
promotion requires some additional efforts,” he stated.
In terms of organic-dispersion coatings harmonization of technical regulation in accordance with European
standards took place only in 2015, so
here in Ukraine producer is still in the beginning of the way.
Khomenko believes that the overall
situation in the Ukraine economy remains
rather complicated, so 2016 will continue
to be tough for coating producers. In general, representatives of UPCA attribute
the restoration of the coating industry
to general improvement of the country’s
economy as it is very dependent on the
situation in related branches, as automotive, shipbuilding and others, as well as
general human wellbeing. CW
Ukraine has seen the reduction in the number of small
coatings manufacturers.
Ukraine sees rise of consolidation at the domestic market.
