Transit expert and former Estonian government minister Raivo Vare said investments into Ukraine can be made to work but need to be done with knowledge.
Speaking at an Estonian-Ukrainian business forum in Tallinn on Friday, Vare said the unique thing about Ukraine is the structural side is weak, but skills are at a high level. Ukraine has a highly qualified workforce and natural resources. He said that if necessary reforms are passed, then these two factors would give economic growth a great boost.
“There is one area where Ukraine has traditionally been a powerhouse, namely military hardware manufacturing,” he said, adding that the military industry can be turned into a powerful civilian industry.
Speaking about the weaknesses, Vare said the poor quality of legislation, including transparency, is one of the greatest risks when investing in Ukraine. He said corruption is also a major problem.
He said the situation in Ukraine could not get much worse, and the economy could only go up. “Those who jump on the climb have an advantage, when the bandwagon is already rolling, then everyone will jump on it,” Vare added.
The war has matured Ukrainian society fast, he said, adding that if reforms were simply avoided for the past 23 years then now there would be little choice but to push them through, Vare said.
Editor: J.M. Laats