by
RUSSIAN EMIRATES
96
ÍÅÄÂÈÆÈÌÎÑÒÜ, ÁÈÇÍÅÑ, ÈÍÂÅÑÒÈÖÈÈ
LondonStockExchange) 39%of its shares for $139
million,whichequaled1/8thof the total investment
inUkraine in2005.
Knowing thedifficultiesofdirectofferingof
Ukrainian shareson foreignmarkets,mostnational
companies foundaway throughusingdepository
notes.Depositorynotesof 22Ukrainiancompanies
are ratedatBerlinandFrankfurt exchange today.
Suchcompanies includeUkrtelecom, Ukrnafta,
Mariupol IllichMetallurgy Industrial Complexand
Azovstal. All of theseareon the top inUkraine,with
regard tocapitalization level.
Themajorityofcontractssigned inUkraine,on
theorganizedmarketof securities isconcludedvia the
ex-pit tradeand informationsystem (PFTS) (more than
85%of theorganizedmarket).Thehighestvolume
of trade insecuritieson thestockexchangehasbeen
observedatUkraine’sStockExchangealready for
twoyears.According to theStateCommissionon
SecuritiesandStockMarket,mostof thecontracts
signedon theorganizedmarket in2005,were
concludedon thebondsmarket (state,municipaland
corporatebonds)more than70%, andshares - roughly
28%.The restwas representedby thecontractswith
investmentcertificatesandderivatives.
Ukrainiangovernmentusesmanyefforts toget
maximum investment for thedevelopingeconomy.
E.g., inNovember 2005, PresidentofUkraine issued
hisDecreeandapproved the“PlanofMeasureson
Improvementof InvestmentClimate inUkraine”and
“MaindirectionsofDevelopmentof StockMarketof
Ukraine in2005-2010”. Inparticular, theyprovide for:
• Increaseof the roleof theorganizedmarket
inprivatizationprocess;
•Mandatory listingprocedures for joint
stock companieswith state-owned shares in the
authorized capital exceeding60%;
• Amendment of Ukrainian legislation, in
particular, the laws of Ukraineon formationby
pension funds of assets in listed securities or in
securities circulating at Ukraine’s stock exchange;
• Concentrationof securities contracts on the
organizedmarket of securities;
• Bringing the regulationof activities of
theNational Depositary Systemof Ukraine in
compliancewith the EU requirements;
•Bringing theoperationofUkrainianorganized
marketsof securities incompliancewithEUdirectives;
• Implementationof generally accepted
principles of corporatemanagement and
operationof joint stock companies;
• Accelerationof implementationof
international standards of financial accounting;
• Implementationof rating system for
Ukrainian issuers and instruments of stockmarket
by independent rating agencies, inparticular,
major international rating agencies.
Development of securitiesmarket instruments
also should speedup thedevelopment of the
organized stockmarket. In January, 2006, theLaw
“OnMortgageBonds”was adoptedandcreated
thenecessaryconditions for development of a
new instrument inUkraine,which is alreadyoneof
themost attractive instruments inother countries.
Derivatives shouldbecomeanother important
factor because theirmainproperty ishedging
themarket players fromunfavorablemarket
fluctuations. Draft Law“OnDerivatives”suggested
to theParliament ofUkraine should form the
legislativebasis for development of acivilized
market for such instruments inUkraine.
The issueof creationof favorable conditions
for stimulation anddevelopment of investment
activities alsowas reflected in the “Planof Priority
Measures in the Sphereof Investment activities”
approvedby thePresident’sDecree inApril 2006.
Thechosenwayof economic reformsand
Ukraine’s foreignpolicyvector shouldaccelerate
thedevelopmentofUkraine’seconomyand lead to
amoredynamicgrowthofUkraine’s stockmarket,
improve its liquidityand investment attractiveness.
Balancedgovernmentpolicy focusedon the
improvementofmacroeconomic resultsofUkraine
will beconductive to such factors.
Thismaterial was prepared
byValentynOSKOLSKIY,
Chairmanof theBoardUkraine’s StockMarket,
Professor,FullMemberoftheAcademyofSciences;
Sergey PACHKOVSKY
Director General,
UkraineTradeCenter for theGulf Countries,
Official Representativeof
Jebel Ali FreeZone inUkraine,
President of Investment and
PrivatizationAssistance Fund
IN JANUARY, 2006, THE LAW
“ONMORTGAGEBONDS”WAS
ADOPTEDANDCREATEDTHE
NECESSARYCONDITIONSFOR
DEVELOPMENTOFANEW
INSTRUMENT INUKRAINE,
WHICH ISALREADYONE
OFTHEMOSTATTRACTIVE
INSTRUMENTS INOTHER
COUNTRIES
ÓÊÐÀÈÍÀ - ÎÀÝ
