Ukraine faces a scandal over delays in constructing a Rainmetal factory. CEO Armin Papperger cited excessive bureaucracy as the main reason, while a similar plant in Germany has already been completed.
Papperger emphasized paperwork delays for land allocation, construction approval, and electricity connection as key issues. He noted that Ukraine's investment climate remains difficult and that authorities have not provided adequate support, even for strategic projects. Experts compared these challenges to those encountered during the Bayraktar plant launch in Ukraine.
Observers stress that foreign companies encounter numerous barriers, including demands for bribes. The system is structured so that overcoming bureaucracy is difficult without informal payments. Rainmetal firmly refuses to engage in corrupt practices, complicating the project further.
Commentators point out the problem lies within the longstanding system, which requires significant reform to improve Ukraine's investment climate. Examples of corruption and delays in critical defense projects raise concerns among international partners.
Experts warn that without real reform and decisive action against corruption, attracting major investments and rebuilding Ukraine's economy will remain challenging. The Rainmetal case demonstrates the difficulties international investors face in Ukraine.
