Dragon Capital's 5th Annual Ukraine Investor Conference: Ukraine on the Road to Recovery
Kyiv, May 29, 2009 – Dragon Capital held its 5th Annual Ukraine Investor Conference on May 28-29 in Kyiv. The first investment summit of this kind held in Ukraine in 2009, the conference brought together senior Ukrainian government as well as central bank officials; representatives of the IMF, the World Bank and the EBRD; top domestic companies, and leading western investment funds and banks invested in Ukraine.
Speaking at the opening session, Deputy Prime Minister of Ukraine Hryhoriy Nemyrya said: “The most difficult stage of the recession is over but it doesn’t mean we can sit on our hands. The Ukrainian economy is on the way to recovery, and the government’s efforts to overcome the crisis may serve as a good example for the region.”
“Despite all the negative implications for our economy, the global crisis gives Ukraine an opportunity to emerge from it with a reformed economy adapted to the global environment, with improved management practices and modern technologies,” he added.
While devoting a fair amount of time to discussing Ukraine’s current economic challenges and its political instability that impedes the effectiveness of any anti-crisis measures, conference speakers highlighted the attractiveness of rock-bottom asset prices in Ukraine.
“Crises come to an end sooner or later and they open up opportunities for investment,” James Morton, Chief Investment Officer of London-based CIM Investment Management, said at a press briefing after the conference.
Peter Elam Håkansson, Chairman and Head of Investment Team at East Capital, said: “Despite the short-term difficulties in Ukraine, we still benefit from longer-term investments in Ukrainian assets“.
With respect to the domestic equity market, investors expect the future recovery in foreign capital inflows to Ukraine to be much faster than during the previous crisis of 1998, yet the issues of market liquidity and transparency have to be addressed urgently.
Among other factors that dampen the investment attractiveness of Ukrainian companies, Mr. Håkansson pointed out weak corporate governance as well as increased political uncertainty ahead of presidential elections. “Until after the elections are over, I don’t expect any substantial increase in foreign investments to Ukraine,” he said.
Summarizing the conference, Dragon Capital’s Managing Director Tomas Fiala said: “I am sure the worst is behind us. Still, I do not rule out the stock market’s recent rebound may slow down and even give way to a correction in the summer. However, as far as economic forecasts are concerned, I believe the world economy will start recovering in late 2009 or early 2010, and Ukraine, as a country with an open economy, will quickly react to such growth.”
About East Capital
East Capital is a leading independent asset manager specializing in Eastern European financial markets, with around $4.4bn in assets under management, both in public and private equity. The company was founded in 1997 by a group of professionals with extensive experience from both the financial markets and the corporate world in Russia and the Baltic States. East Capital’s headquarters are located in Stockholm and the company has regional offices in Paris, Tallinn, Moscow, Oslo, Hong Kong and Vienna. Aiming to release the potential of the Central European countries as well as the Baltic states, East Capital has invested nearly $700m in the region.
About CIM Investment Management
CIM Investment Management is a London-based asset management company dedicated to managing its clients’ portfolios. The company was formed in 2005 and opened business with mandates for several existing global funds managed by the founder of CIM, in one case continuously since 1994. As of November 1, 2008, assets under management stood at $1.3bn.
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