1. Investment Attractiveness Index with the support of the InMind research company EBA Investment Attractiveness INDEX II/2011 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 12 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: 124 CEOs of EBA members companies Timing: May 16 th, 2011 – June 1 st, 2011 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

5. Investment Attractiveness Index with the support of the InMind research company 5 Key findings III/2008IV/2008I/2009II/2009III/2009IV/2009I/2010II/2010III/2010IV/2010I/2011II/2011 Investment Climate in Ukraine 3,12,32,02,32,22,12,73,83,63,53,7 Investment Climate Dynamics: last 3 months 2,81,82,12,72,52,63,2 3,13,43,63,5 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 3,4 Investment Climate of Primary Industry: next 3 months 3,32,52,42,72,92,83,23,13,03,1 3,2 General EBA Index3,142,22 2,642,562,573,083,253,203,283,403,39

6. Investment Attractiveness Index with the support of the InMind research company 6 Key findings

7. Investment Attractiveness Index with the support of the InMind research company 7 EBA – Index: Components

8. Investment Attractiveness Index with the support of the InMind research company Mean 3,12,32,02,32,22,12,73,83,63,53,7 8 Investment Climate in Ukraine The Investment Climate in Ukraine is… (5 point scale) 0 – +

9. Investment Attractiveness Index with the support of the InMind research company 9 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 3,13,43,63,5

10. Investment Attractiveness Index with the support of the InMind research company 10 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

11. Investment Attractiveness Index with the support of the InMind research company 11 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 3,4

12. Investment Attractiveness Index with the support of the InMind research company 12 Investment Climate of primary industry: next 3 months Investment climate of primary industry… (5 point scale) 0 – + Mean 3,32,52,42,72,92,83,23,13,03,1 3,2

13. Investment Attractiveness Index with the support of the InMind research company 13 Positive Changes in Investment Climate during the last 3 months When asked about positive changes that took place during the last 3 months over a half of investors (52%) underlined that there were no positive changes in the investment climate recently. This share remains rather unchanged compared to I quarter 2011. Every tenth respondent highlighted the progress in VAT refunding. The share of those who consider stability as the positive change during the last quarter remained the same (8%).

14. Investment Attractiveness Index with the support of the InMind research company 14 Negative Changes in Investment Climate during the last 3 months The variety of negative changes mentioned by investors has increased further. However 15% considered that there were no negative changes recently (compared to 7% in I/2011). The majority of negative changes are associated with the new Tax Code, increasing pressure and inspections from state administrations, corruption and bureaucracy. While 4% highlighted improvements in customs procedures 7% underlined that worsening situation with the customs takes place. 5% of investors are assured that no actual actions are being undertaken by the government. Among other comments there are single answers such as “macro economic threats are growing”, “rule of law not being respected”, and many others

15. Investment Attractiveness Index with the support of the InMind research company 15 Estimation of the situation with solving issues The situation with solving 7 issues that EBA has raised remained unchanged compared to I quarter of 2011. Weak tendency for improvement is observed in customs procedures simplification (+0,2 points compared to I/2011) Mean 1,71,82,53,02,32,2 -0,1- -+0,1+0,2-0,1

16. Investment Attractiveness Index with the support of the InMind research company 16 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 II quarter of 2011 the EBA Investment Attractiveness Index has reached 3.39 on a 5 point scale compared to 3.40 in I quarter of 2011 which means no changes took place in investment attractiveness of Ukraine during the last quarter Absent of changes is confirmed with the Index structure analysis: the current investment climate evaluation remained the same (3.7) the climate changes during the last 3 months were evaluated at 3.5 (-0.1) the investment climate in the primary industries of investors reached 3.2 (+0.1) Absent of changes is confirmed with the Index structure analysis: the current investment climate evaluation remained the same (3.7) the climate changes during the last 3 months were evaluated at 3.5 (-0.1) the investment climate in the primary industries of investors reached 3.2 (+0.1)

17. Investment Attractiveness Index with the support of the InMind research company 17 Key findings Considering progress with 7 key points that EBA raised in the context of business and authorities interaction the situation remains unchanged. Weak tendency for improvement is observed in customs procedures simplification (+0,2 points compared to I/2011). The variety of negative changes marked by investors exceeds the variety of positive ones. The same share (52%) is assured that no positive changes took place in investment climate recently. Among the mentioned positive changes there are 2 major ones that include VAT refund improvement (10%) and stability (8%). Among major negative changes there are Tax Code consequences (20%), increasing pressure and inspections from state administrations (18%), corruption and bureaucracy (15%). The variety of negative changes marked by investors exceeds the variety of positive ones. The same share (52%) is assured that no positive changes took place in investment climate recently. Among the mentioned positive changes there are 2 major ones that include VAT refund improvement (10%) and stability (8%). Among major negative changes there are Tax Code consequences (20%), increasing pressure and inspections from state administrations (18%), corruption and bureaucracy (15%).

18. Investment Attractiveness Index with the support of the InMind research company +38 044 496 06 01 office@eba.com.ua www.eba.com.ua