The Ukrainian government should be happy for the actions it has taken to enhance business climate, such as the partial payment of long overdue value added tax (VAT) refunds in late January and the move to finalize membership in the World Trade Organization (WTO).

We really hope this very promising government initiative opens the door for dynamic interaction between government and business in Ukraine and the chance to make real progressive steps on solving critical issues.

One of the most hopeful symbols in February was the establishment by Prime Minister Yulia Tymoshenko of a new Council of Investors (COI) to be headed by First Vice President Oleksandr Turchynov and Hryhoriy Nemyria, a vice prime minister.

The COI's first meeting will be held in March 2008 and will include a Secretariat led by Minister of Economics Bogdan Danilyshyn, along with a representative from Ernst & Young, both chosen to coordinate the work of domestic and foreign investors in the council.

The COI's impressive work schedule for the months ahead contains the immediate formation of working groups designed to redress specific issues, in part by evaluating drafts of new laws, identifying major hurdles to investment, and submitting proposals aimed at aiding investment projects in Ukraine's strategic economic sectors, especially with an eye towards EURO 2012.

We can say directly and without any doubt the prime minister and other government leaders that the U.S.Ukraine Business Council (USUBC) members chosen to serve on the COI are ready to do the best to contribute to the council's success. At the moment, the USUBC is preparing its response to Danylyshyn's request to identify priority issues requiring immediate action.

For business, industry and manufacture in Ukraine, dealing with the country's chaotic and changing tax laws and reforms is one of the most troublesome burdens. Dealing with Ukraine's State Tax Administration (STA) needs unusually large accounting staff expenditures and consumes much management time.

Hence, many of our members say that dealing with customs issues is even more problematic. Ukrainian customs remains mired in Sovietstyle thinking, requiring 100 percent control of all incoming shipments at all times.

The rest of the world has long since gone to risk management systems that use highly sophisticated samples methods to effectively deal with a flow of imported productioss.

The level of investment in Ukraine is still a problem for our country and many opportunities are being lost. In particular, the political insurance, rent guarantee and equity investment fund options presented by the US government's Overseas Private Investment Corporation (OPIC) are not available to Ukraine.