Euro 2012 Projects are the Main Part of Ukraine-China 4 Billion USD Investment Agreements

KYIV, Ukraine, September 3, 2010 /PRNewswire/ -- The main result of the state visit of the President of Ukraine, Viktor Yanukovych, to the People's Republic of China is China's commitment to invest more than 4 billion USD in the infrastructure projects in Ukraine. The projects for EURO 2012 have been the focus of the investment agreements signed during the state visit.

The major investment projects include 1 billion USD for the high-speed railway road to Kyiv-Boryspil airport, the country's main air gateway and 700 mln USD for the construction of a steam-gas plant in Crimea. Additionally, China is going to provide Ukraine with an oil off-shore drilling station worth 200 mln USD according to a leasing agreement.

The construction of the high-speed railway connecting the main Ukrainian airport to the rail station comes in a framework of the previously signed agreement between China National Machinery Industry Complete Engineering Corporation (CMCEC) and the authorities of Kyiv-Boryspil airport. Among other Chinese investors are China Road Bridge Corporation and China Eximbank.

As the attention of many European countries towards Ukraine's preparations for the Euro-2012 Football Championship is increasing, the Ukrainian government is making additional efforts to attract foreign investors. To improve the investment climate, the Ukrainian government has approved new legislation and launched a campaign to curb corruption. During the recent several months, a number of senior officials were arrested on corruption charges.

In July of this year, law on public-private partnership was adopted. According to the law, foreign businesses, which are involved in public-private partnerships in Ukraine, enjoy the national regime for investment and business activities and have additional guarantees protecting their investment.

After the financial crisis of 2008-2009, Ukraine's economy has started reviving. Ukraine's GDP has grown by 6.3% in the first half of 2010. There is also increase in industrial production, cargo turnover and construction. The European Bank for Reconstruction and Development confirmed its forecast for Ukraine's GDP growth at 4% in 2010, and improved it for 2011 from 4% to 4.1%. Inflation forecast for 2010 is 11.4% and 11% for 2011. Budget deficit will decrease to 6% of the GDP in 2010, which is an improvement in comparison to 6.4% of the GDP in 2009.

SOURCE Press Office of the President of Ukraine