Is Ukraine the right place for running a Business?

“Business opportunities are like buses, there’s always another one coming.”

– Richard Branson

According to recent “Doing Business” research, carried out by the World Bank, Ukraine is at 64th position among 190 countries.

These days are good to start a business in this country.

Important macroeconomic measures prove this statement:

  • 3,9% of GDP 2019 increase (best pace for the last 8 years)
  • stable decrease of inflation index in 2019 (5% in December 2019)
  • Central Bank’s tendency to lower the discount rate level down to 8% in 2021

Depending on your funds and business model here are some thoughts to consider Ukraine as your next business spot.

Economy

Ukraine is the best performing democracy among former USSR states. Strong and notable political processes allow Ukraine to access the World’s most sophisticated legal and financial sources:

  • The new agreement is reached with the International Monetary Fund, letting important bank system advances and funding to keep up
  • Improving bilateral relationships with Russia increase both safety and main trade indexes
  • 14% of national currency appreciation against USD and EURO means more external buying capacity for domestic companies

Competitive benefits in Ukraine

The population is literate and well-educated, so this multiplies country’s business value. Ukraine is known for its IT specialists and there are many higher education establishments preparing engineers and all kinds of technical stuff.

  • For the entrepreneurs’ hands, there are good road and railway networks. Add well-performing seaports available for import/export and transit operations
  • Branchy nation-wide carrier services. It is extremely easy to trade online throughout the whole country
  • Internet coverage is broad and of good quality

A lot of initiatives have been launched to enhance information security and living comfort for those residing in Ukraine. There are many governmental services and functions accessible via online E-government resources (https://www.kmu.gov.ua/servicesfilter – in Ukrainian)

Recent positive changes

  • Currency. As it was said above, the Ukrainian currency became stronger during the last half of the year due to promising political changes and land market opening for foreign investors
  • Foreign Affairs. Solving the issues with the Russian Federation is another important factor of stability for long term business plans
  • Funds. Increasing business activity through the utilisation of affordable long term loans is seen in the nearest future

Business facts

Light industry. Clothes manufacturers move their production facilities from China to Ukraine due to better labour costs and tax loads.

IT. Ukraine is the 4th country for information technology business after the USA, India and Russia. There are about 172K tech specialists employed currently, generating around USD2,07 billion of revenue annually for 245 companies comprising of several regional clusters registered in the country.

Meat and Poultry production. China has opened its market for Ukrainian food products.

Key benefits for business owners in Ukraine

Many essential data and business-related functions are already available by E-Government governance:

  • E-procurement. Both in public and governmental sectors
  • Electronic identification
  • Enhanced E-banking
  • Open data services
  • Public finances

It’s wise to highlight the production costs factor: comparatively chip labour, electric power, rent and other resources costs are at business disposal.

Business insight

Aquaculture is evolving and promising application of funds. I am involved in the fish farming industry and would like to invite anyone to join this kind of business offering up to 50% of ROI.

Some other attractive sectors for investing in Ukraine:

  • Agriculture (wheat, corn, sunflower oil)
  • Human and animals food production
  • Cargo logistics for domestic and cross border traffic
  • Information technologies
  • Solar and Wind Power Plants (Western and Eastern territories respectively)
  • Aerospace Technology

P.S. Ukraine provides affordable employees, flexible cross business-government relations and variety of places to run your business from.

I’m a fellow traveller and explorer of Ukraine. Based in Kyiv. Feel free to reach out to me with any questions. I’m very friendly and always open to discussing new projects, interesting ideas or opportunities to be part of Ukraine.
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