To establish Ukraine as a significant player on the global economic map, overcoming the challenges of war is not enough. The inefficiency of the legal system and the government's reluctance to build transparent partnerships with businesses are equally threatening to business, the driving force of the economy.
These points were highlighted by Ivan Gerasymovych, CEO of Smart Holding, during the "Ukraine 2050: Dialogues About the Future" forum organised by NV.
"We are an investment company with a portfolio of 83 enterprises across ten regions of Ukraine, supplying products to nearly 50 countries worldwide. These businesses in Ukraine are now fighting for survival. Fifty-five of our companies have been blocked by court decisions related to a criminal case that has dragged on for a year and a half. However, after the asset seizures, no further investigation has been conducted," said Ivan Gerasymovych.
The prolonged delays in investigations by law enforcement have created numerous issues, including problems with tax invoices, KYC procedures, and relationships with contractors. Due to the blocked state registry, Smart Holding has even been unable to update its CEO information. The company must constantly overcome these obstacles to sustain its operations and continue paying salaries to employees.
The challenges faced by Smart Holding are not unique. As Gerasymovych noted, businesses across Ukraine encounter similar pressures. To prevent this, the government and law enforcement must fundamentally shift their approach to businesses, fostering a stable partnership based on trust and mutual respect. Such a partnership will provide a foundation for collaborative efforts to transform and strengthen Ukraine's economy. A key component of this partnership is the unwavering adherence to the rule of law, which in Western countries serves as a cornerstone for the development of a market economy.
"We are building a country for the people and because of the people. Based on this principle, the state and business must unite and collaborate. This will ensure that Ukraine emerges as a prosperous and technologically advanced member of the European Union. By working together, we can secure a place for Ukraine among the top five European countries by 2035”, said Smart Holding CEO.
