German Business: Corruption slows down investment in Ukraine.

According to the chairman of the board of AHK Ukraine, Reiner Perau, many German companies and entrepreneurs are interested in the Ukrainian market, but active and widespread corruption in Ukraine stops them. They are waiting for positive developments in this area. According to him, very often officials in local administrations demand €500 and more for one or another permit.

There are also problems in relations with the Tax Service. “It is difficult for German investors to establish a civilized dialogue with this structure. Often, the Tax Office simply paralyzes the enterprise’s work when it comes for an inspection. All production processes stop,” says Perau.

According to him, due to problems with customs, German companies operating in the west of Ukraine and supplying their products to the German and European markets, faced problems with crossing the border. Due to slow customs procedures, the entire car production process in Germany comes to a stop due to slow part deliveries of components produced in Ukraine. For this reason, German investors cannot expand their production in Ukraine.