Scaling of multinational companies in Ukraine requires legislative regulation

The activities of multinational companies in Ukraine are not regulated by law. But it should be, given their powerful influence, including on the country's agricultural and financial sectors. More about this in the commentary UNN said Viktor Medved, an economist and banking expert.

As an example, the expert spoke about the activities of a subsidiary of the multinational corporation Cargill.

"Cargill has been operating in Ukraine for over 20 years. In the 90s, when farmers had a shortage of working capital and lacked money for the sowing season, Cargill financed our farmers: it gave them money, for example, for diesel fuel, and then took the finished harvest.

Subsequently, Cargill expanded its presence to other sectors of the Ukrainian economy, including banking.

The corporation is quite large, it has a surplus of cash, so it started lending to banks through various instruments, in particular, by becoming a co-owner of a stake in a financial institution. For example, Cargill's share in Delta Bank was about 30%," the expert said.

READ MORE: The agreement between Cargill and Yablunevyi Dar to "collapse" Delta Bank's loans turned out to be illegal: Liamets tells about the background

It is difficult to overestimate Cargill's influence on the financial and agricultural sectors of our country, Medved says.

"The presence of Cargill and other multinational companies carries many risks for the country. One of them is the export of grain in excess of the norm. This process is not controlled by anyone today," he added.

In developed countries, the activities of any foreign company are clearly regulated.

"Abroad, the activities of any foreign company are monitored 24 hours a day, blocking any attempts by foreigners to go beyond the pre-established limits. It will not be possible to participate in the life of the United States and Japan as powerfully as multinationals do inside Ukraine," Medved added.

Control over foreign capital in Ukraine should be exercised by the state, Medved said. The legislator should regulate this process, he added.

"In fact, we have no legislative regulation of international capital participation in Ukrainian industries, which may jeopardize certain factors of state stability," the expert said.