Ukraine ranks 155 on Economic Freedom Index

Ukraine ranked 155 out of 178 countries evaluated by the 2014 Index of Economic Freedom released on Jan. 15 by the Heritage Foundation and the Wall Street Journal. Ukraine improved last year’s rank of 161, yet the report cited ongoing trouble with corruption, which worsened.

“In 2012, a new law eliminated transparency requirements for public procurement,” the report said. “The judiciary is subject to intense political pressure and largely carries out the will of the executive branch. Contracts are not well enforced and expropriation is always a possibility.”

Ukraine’s ranking was just below Lesotho and a step above Haiti. The Russian Federation ranked 140 while Ukraine’s western neighbor, Poland, ranked 50.

Zenon Zawada: Although Ukraine’s position has improved since the last two surveys, the report confirms the administration of President Viktor Yanukovych has done little to improve the miserable conditions for doing business in Ukraine. Instead corruption is proven to have worsened under the three years of Yanukovych’s rule.

We don’t see any hope for Ukraine’s economic improvement should Yanukovych gain re-election next year. The best hope is the election of an EU-oriented president next year who will pursue the Association Agreement and initiate painful, long-term reforms that might not be popular. So the prospect for radical reforms isn’t guaranteed with the emergence of a new president either.