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Ukraine received no disbursements in 2011 or 2012 from its 2010 Stand-By Agreement (SBA) with the International Monetary Fund (IMF), due to the GOU’s failure to implement several key requirements, including reducing subsidies for domestic gas prices.

The 2010 SBA (which followed a 2008 IMF loan that went off track in 2009) envisioned USD15.2 billion in financing to improve Ukraine’s macroeconomic situation and facilitate structural reforms, but lapsed in 2012.

However, conditions for doing business remain very difficult.

Complex tax and customs codes, byzantine laws and regulations, poor corporate governance, weak enforcement of contract law by courts which allow and sometimes protect corporate raiding, and official corruption have made Ukraine a difficult place in which to invest.

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