1. Investment Attractiveness Index with the support of the InMind research company EBA Investment Attractiveness INDEX III/2010 - 9th wave Conducted by EBA with the support of InMind research company

2. Investment Attractiveness Index with the support of the InMind research company 2 Project summary The results of 9 th wave of investment climate in Ukraine tracking research. Methodology: The EBA Investment Attractiveness Index is assessed as the mean value based on the following five questions: What do you think about the investment climate in Ukraine? How would you estimate the investment climate for your company in Ukraine at the moment compared to the previous three months? What are your expectations of the investment climate in Ukraine over the next three months? In your opinion, would it be profitable for new entrants to invest in Ukraine over the next three months? What are your expectations of the business environment of your primary industry over the next three months? Participants: 96 CEOs of EBA members companies Timing: August, 30 th 2010 – September, 18 th 2010 Survey Implementation: the Survey was conducted by EBA with the support of InMind research company

3. Investment Attractiveness Index with the support of the InMind research company 3 Key findings

4. Investment Attractiveness Index with the support of the InMind research company 4 Key findings III/2008IV/2008I/2009II/2009III/2009IV/2009I/2010II/2010III/2010 Investment Climate in Ukraine 3,12,32,02,32,22,12,73,83,6 Investment Climate Dynamics: last 3 months 2,81,82,12,72,52,63,2 3,1 Investment Climate Dynamics Expectations: next 3 months 3,12,2 2,82,62,83,43,03,2 Profitability for new entrants: next 3 months 3,42,32,42,72,62,52,93,33,2 Investment Climate of Primary Industry: next 3 months 3,32,52,42,72,92,83,23,13,0 General EBA Index3,142,22 2,642,562,573,083,253,20

5. Investment Attractiveness Index with the support of the InMind research company 5 Key findings

6. Investment Attractiveness Index with the support of the InMind research company 6 EBA – Index: Components

7. Investment Attractiveness Index with the support of the InMind research company 7 Investment Climate in Ukraine The Investment Climate in Ukraine is… (5 point scale) 0 – + Mean 3,12,32,02,32,22,12,73,83,6

8. Investment Attractiveness Index with the support of the InMind research company 8 Investment Climate Dynamics: last 3 months The Investment Climate in Ukraine is… (5 point scale) 0 – + Mean 2,81,82,12,72,52,63,2 3,1

9. Investment Attractiveness Index with the support of the InMind research company 9 Investment Climate dynamics expectations: next 3 months The Investment Climate in Ukraine is… (5 point scale) 0 – + Mean 3,12,2 2,82,62,83,43,03,2

10. Investment Attractiveness Index with the support of the InMind research company 10 Profitability for New entrants: next 3 months Profitability for New Entrants … (5 point scale) 0 – + Mean 3,42,32,42,72,62,52,93,33,2

11. Investment Attractiveness Index with the support of the InMind research company 11 Investment Climate of primary industry: next 3 months Investment climate of primary industry… (5 point scale) 0 – + Mean 3,32,52,42,72,92,83,23,13,0

12. Investment Attractiveness Index with the support of the InMind research company 12 Changes in Investment Climate after the President Election There was no significant shift in evaluation of the qualitative changes that took part after the President of Ukraine election compared to the previous quarter (II/2010) results. One third (34%) reported that no changes took place. The signs of investors’ opinions polarization however appear: the share of those who reported positive changes increased (increase from 6% to 11% during the last quarter) while the share of those who reported negative changes and instability increased as well (from 4% to 10%).

13. Investment Attractiveness Index with the support of the InMind research company 13 Estimation of the situation with solving issues compared to the previous 3 months The perception of situation with VAT refund has improved compared to the previous quarter however evaluation of customs procedures simplification and technical barriers to trade evaluation are worsening further. The rest of the indicators remain unchanged.

14. Investment Attractiveness Index with the support of the InMind research company 14 Key findings Five-grade scale is used to evaluate the investment climate, where 1 stands for the lowest evaluation and 5 stands for the highest evaluation In III quarter of 2010 the EBA Investment Attractiveness Index did not undergo significant changes and showed slight trend to decrease from 3.25 to 3.20 on a 5 point scale. The current investment climate evaluation has slightly dropped from 3.8 in II quarter 2010 to 3.6 in III quarter of 2010. Investors expect the situation will remain without significant changes during the next quarter.

15. Investment Attractiveness Index with the support of the InMind research company 15 Key findings Considering progress with 7 key points EBA raised in the context of business and authorities interaction the VAT refund situation is improving however evaluation of customs procedures simplification and technical barriers to trade evaluation are worsening further. The rest of the indicators, namely fighting corruption, court system reform, land reform, currency regulation, remain unchanged during the last quarter. Compared to the results of the previous quarter there was no significant shift in evaluation of the qualitative changes that took place after the President of Ukraine election. One third (34%) reported that no changes took place. The signs of investors’ opinions polarization however appear: the share of those who reported positive changes increased (increase from 6% to 11% during the last 3 months) while the share of those who reported negative changes and instability increased as well (from 4% to 10%).

16. Investment Attractiveness Index with the support of the InMind research company 16 European Business Association 1st floor, 1A Andriyivsky Uzviz 04070 Kyiv, Ukraine Tel: +380 44 496 06 01 Fax: +380 44 496 06 02 office@eba.com.ua www.eba.com.ua