REGULATORY ENSURANCE FOR FDI ATTRACTION IN TURBULENT CONDITIONS: GLOBAL TRENDS AND REFORMS IN UKRAINE
Abstract
The article examines global trends in regulatory support for attracting and regulating foreign direct investment in conditions of uncertainty and turbulence, and summarizes the current state and prospects for further reform of investment legislation in Ukraine to accelerate the process of accession to the EU. It is determined that among the global trends in regulatory regulation of FDI, the main ones are the institutionalization of screening, incentives through industrial policy, a focus on sustainable development, the role of legal stability and the rule of law. It is demonstrated that the reform of old international investment agreements remains slow, and about half of global FDI is regulated by unreformed agreements, which complicates the settlement of disputes. A comparison of Ukraine's position in major international rankings showed that progress has been noted in the field of digitalization of regulatory procedures and transparency of public investment management, but the rating position of the regulatory regulation sub-indices in 2024-2025 remains unsatisfactory. In particular, this applies to the ratings of IPRI, WIPO, BTI, Freedom House, B-READY, etc., in which Ukraine has low scores for property rights protection, regulatory investment environment, legal approaches to business regulation and international trade. It is concluded that closer integration with the EU market is ensured by approaching EU practices regarding transparency of public expenditures, creating a single information system for accountability to international donors, and improving instruments for capital market supervision. As further steps for approaching EU standards in the field of investment legislation, it is considered necessary to adopt the Law on FDI Screening to ensure the verification of transactions in strategic sectors, further adaptation of norms regarding investments in multimodal transportation and transport logistics, gradual abolition of restrictions on the repatriation of dividends, and completion of the insurance market reform to attract long-term investment resources of EU insurance companies, which is in line with Ukraine's obligations under the Ukraine Facility program.
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