The International Chamber of Commerce (ICC) will lower the costs of its arbitration court for foreign investors involved in Ukraine's reconstruction projects to encourage much-needed investment, the ICC Secretary General John Denton said at the Kyiv International Economic Forum on Nov. 7.
"The big issue for a foreign investor is clear access to dispute settlement," he said. "We want to encourage more investment to support the economic front."
The ICC, the world's largest business organization, is active in 170 countries and enabled $17. 5 trillion worth of economic activity last year, accounting for 22% of the world’s gross domestic product (GDP.) The organization previously helped facilitate the Black Sea Grain Initiative in 2022 with the UN which allowed Ukraine to export food products through the Black Sea.
While Ukraine’s business activity has improved this year compared to 2022, investment is still low due to the risks associated with war and fears around corruption. The country's GDP is slowly crawling back from the massive 29.1% fall in 2022 but remains far below its pre-war level as Russian aggression tears apart core industries like metallurgy.
Denton stressed that the only way to strengthen Ukraine’s economy is to have a strong private sector and access to global markets. Balancing the security dimension and the economic dimension is key, he added.
As the largest arbitral institution in the world, the ICC will offer reduced rates for foreign investors involved in reconstruction-related disputes in Ukraine. Denton did not specify what the rates would be, but the ICC will directly tell investors opting for this route.
Dominic Culverwell
The organization also wants to help Ukrainian businesses branch out into the South American, African, and Asian markets, Denton said. Already, the ICC is taking Ukrainian delegations to their Chambers of Commerce conferences, Denton said.
The ICC wants to form a coalition of members of the G7 who are part of the “donor community” to use their export and trade promotion bodies to support market access for Ukrainian businesses. Improved market access will support the maintenance of Ukraine, Denton stressed.
Ukrainian small and medium-sized businesses (SMEs) will also have access to the ICC’s One Click digital platform in the Ukrainian language. The platform offers tools, solutions, and guides to trade globally.
"We want to make it easier for SMEs to get stuff into the world as well," Denton said.
Currently, the ICC is developing a second Black Sea initiative, after Russia pulled out of the agreement in July 2023. For now, Ukraine is managing to ship goods through an alternative corridor in the Black Sea carved out by its military, although Russia has recently targeted vessels sparking concerns around safety.
Denton is pushing pressure on the international community from the Global South, particularly Brazil, to sway Moscow into cooperating with Ukraine, the UN, and Turkey, and agree to a second initiative.
"If you're serious about fighting famine, open the Black Sea. Make certain Ukrainian goods and services actually flow into the world," Denton said, referring to a conversation he had with Brazilian President Luiz Inácio "Lula" da Silva.
Sonya Bandouil
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