EBRD, USAID and AmCham help Ukraine develop capital and organised commodity markets

By Olga Rosca
@olgarosca

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Читати українською

  • Government, EBRD, USAID and AmCham to develop model for trading Ukrainian securities and organised commodities
  • Partners to buttress Ukraine’s trading and post-trade infrastructure
  • NEXT-UA market to involve private sector and to help attract investment and finance economic growth

The government of Ukraine, the European Bank for Reconstruction and Development (EBRD), the United States Agency for International Development (USAID) and the American Chamber of Commerce in Ukraine (AmCham Ukraine) are joining forces to develop capital and organised commodity markets in the country to help attract investment to Ukraine and finance the country’s economic growth.

More advanced capital and organised commodity markets – including electricity, gas, oil and agricultural products – play a critical role in competitive price formation and transparency. Under an initiative, formalised today in a memorandum of understanding (MoU), the government – backed by the three partners and in consultation with the National Bank of Ukraine and the National Securities and Stock Market Commission – will develop a model for trading in capital and organised commodities in Ukraine, called NEXT-UA.

The new market infrastructure will involve private ownership by reputable investors and appropriate regulatory supervision and oversight. It will operate transparently, in line with best corporate governance standards and in accordance with European Union legislation.

NEXT-UA will facilitate the integration of Ukraine’s markets into the international ecosystem, improve price discovery for commodities and provide hedging mechanisms for businesses in the form of transparent markets for capital, energy, agriculture and other sectors. It will also help develop financial services based on international best practices and innovative financial technologies.

The MoU was signed by Ukrainian Prime Minister Denys Shmyhal, EBRD Managing Director for Eastern Europe and the Caucasus Matteo Patrone, USAID Acting Mission Director Susan Kutor and AmCham Ukraine Chair of the Board of Directors Lenna Koszarny.

Prime Minister of Ukraine Denys Shmyhal said: “The stock market is one of the best tools for leveraging domestic and foreign investment in the real sector of the economy. Thus, the Cabinet of Ministers in synergy with USAID, EBRD and AmCham Ukraine plans to set up integrated capital and commodity markets in Ukraine in the next three years. Through this initiative – the National Exchange Trading in Capital and Organised Commodity Markets (NEXT), the citizens of Ukraine will benefit from new opportunities, such as new financial instruments for saving and investing. Businesses will receive a long-term and cheaper resource for developing their enterprises and the state will reap economic development due to increased investment.”

EBRD Managing Director Matteo Patrone added: “Together with our partners we will help Ukraine strengthen the currently fragmented securities and commodities markets and enhance trading practices. Our goal is to involve the private sector in the development of these markets and introduce transparent and efficient market-based procedures that are fully aligned with the principles of good governance and recognised regulation.”

USAID Acting Mission Director Susan Kutor emphasised: “NEXT-UA is another critical piece of US assistance to Ukraine. The United States of America is committed to helping the Ukrainian people achieve their full potential and USAID will continue to promote equitable economic growth in the country as it has done for nearly 30 years.”

“AmCham is thrilled to be the private sector partner in this ambitious NEXT-UA project, in partnership with the government of Ukraine, USAID and the EBRD. The development of Ukraine’s capital and organised commodity markets is a strategic priority for the business community and included in the AmCham ‘10 Steps for Ukraine’s Economic Recovery and Growth’ initiative. We look forward to mobilising the private sector to cooperate alongside all stakeholders, thus ensuring NEXT-UA realises its bold vision of markets which enable participants to access financing, hedge risks, accumulate funds and invest in modern financial instruments,” said Lenna Koszarny, Chair of the Board of Directors, AmCham Ukraine, and Founding Partner and CEO of Horizon Capital.

About the partners

The EBRD is the leading institutional investor in Ukraine. In the past two years alone, the Bank has committed €2 billion to the economy. The EBRD finances infrastructure, energy efficiency, energy security, agricultural and industrial projects, as well as smaller businesses. The investments are combined with support for policies that promote a more enabling business environment.

USAID is the world's premier international development agency and a catalytic actor driving development results. USAID’s work demonstrates American generosity, promotes a path to recipient self-reliance and resilience, and advances US national security and economic prosperity. USAID has partnered with Ukraine since 1992, providing more than US$ 3 billion in assistance. USAID’s current strategic priorities include strengthening democracy and good governance, promoting economic development and energy security, improving healthcare systems and mitigating the effects of the conflict in the east. For additional information about USAID in Ukraine, please visit http://www.usaid.gov/ukraine or https://www.facebook.com/USAIDUkraine.

The American Chamber of Commerce is Ukraine’s most powerful international business association that has been serving members in Ukraine since 1992. AmCham Ukraine is an affiliate of the US Chamber of Commerce. Being a non-governmental member-funded non-profit organisation, AmCham Ukraine represents the biggest US and international investors operating in Ukraine, who have invested over US$ 50 billion in Ukraine and remain committed to the country. AmCham Ukraine is the largest AmCham Office in Europe and a part of a strong global AmChams in Europe network. 

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