The American Chamber of Commerce in Ukraine recognizes Ukraine’s government's discussions over the past weeks in finding a solution to the challenges in the solar and wind renewable energy sector.
The Chamber members in the renewable sector are ready to continue productive discussions to find mutually acceptable solutions aimed at improving the creditworthiness of the Guaranteed Buyer and avoiding making retroactive changes in legislation, which might have long-term negative impacts on the investment climate in Ukraine. Improving the bankability of the power purchase agreement may be a part of measures taken by the Government to stabilize the market.
The long-term sustainability of the guaranteed buyer must be a part of any solution, and is an essential prerequisite to any discussions around voluntarily restructuring to ensure investors have confidence that this is a one-time exercise.
Additionally, AmCham members strongly believe that giving priority payments to investors that voluntarily restructure negates the voluntary nature of that restructuring, and as such, has no place in any proposed solution. It is fundamentally important that all market players and investors are given equal treatment by the Government irrespective of whether or not such investors opt for the restructuring on the terms set by the Government.
Members of the American Chamber of Commerce are upbeat about the business climate, and 65% of members plan to increase their investments in Ukraine.
However, AmCham members believe getting this issue right is essential to ensuring the ambitious but laudable targets for FDI, privatization, and concessions are achievable, and failure to find a truly voluntary solution would deter any new investors or increased investments in the country, and materially jeopardize future economic growth.
Members of the American Chamber of Commerce in Ukraine look forward to reviewing the proposed draft legislation and continued dialogue with Ukraine’s government on this important issue.