Ukraine’s new government’s attempts to stamp out illegal trade and meet WTO standards have led to hasty legislation on special economic zones. In the process, it has alienated current investors and made potential ones wary, reports James Hydzik.

Ukraine’s development zones are undergoing a much needed legislative overhaul. However, recent turmoil involving Ukraine’s special economic zones (SEZs) and priority development territories (PDTs) reflects both the positive and less attractive characteristics of the learning process on the part of Viktor Yushchenko’s government.