Markets & Sales

Ukraine is a country rich in natural resources with a dynamic workforce, low labour costs, and access to European markets. Rising wages and disposable income are creating a new generation of consumers, which naturally benefits businesses. Ukraine's drive toward democratic, Western values and standards is creating the framework for the vibrant economy Ukraine needs to thrive

Markets & Sales

Ukraine is a country rich in natural resources with a dynamic workforce, low labour costs, and access to European markets. Rising wages and disposable income are creating a new generation of consumers, which naturally benefits businesses. Ukraine's drive toward democratic, Western values and standards is creating the framework for the vibrant economy Ukraine needs to thrive

Ukraine now competes head-to-head in the "premier league" of EU countries in the CEE region for new investment from global companies in many sectors, including manufacturing, agribusiness and logistics, IT and renewable energy

Indeed, we have seen FDI flows of $12 billion during 2015–2018 resulting in the construction of over 80 plants representing tens of thousands of new high-added-value jobs. As a result, we see that Ukraine has turned the corner as an attractive investment destination.

The Government has also eliminated many administrative barriers, has reduced the frequency and duration of inspections, has expanded rights of businesses, and has introduced an electronic system for VAT refunds that contributes greatly to facilitating doing business in Ukraine. As a result, according to the Global Competitiveness Report of the World Economic Forum, in 2017, Ukraine improved its"Policy transparency" ranking by 34 positions. Lately, our country has introduced 35 e-services for citizens and business in the fields of economy, healthcare, education, and social security. We proceed along the road of business environment deregulation by removing excessive and inefficient state regulations and by abolishing unnecessary barriers and outdated procedures.

The DCFTA signed with the European Union and ratified by both Parliaments is already having an enormous impact on Ukrainian industry, lifting tariff and non-tariff barriers for Ukrainian exports, most notably in the agricultural and manufacturing industries, where Ukraine enjoys important competitive and cost advantages. Implementation of the first step, the one-way free trade zone with the EU, encouraged Ukrainian businesses to expand exports to the region. Future growth potential is great as per capita Ukraine exports remain low at $1,540 per year versus $4,956 in Poland and $6,605 for the sixteen CEE countries.

Currently, the EU continues to apply its preferential trade regime for Ukrainian goods: for example, 83% of agricultural goods are imported duty-free to the EU. It is anticipated that exports will increase further given the large 500 million consumers EU market and the fact that major destinations in Europe may be reached within two truck days.


WARSAW
390 KM
BUDAPEST
570 KM
BERLIN
930 KM
Ukraine is ideally positioned to be a production hub for EU
Kilometers distance to select cities
WARSAW
390 KM
BUDAPEST
570 KM
BERLIN
930 KM
Ukraine is ideally positioned to be a production hub for EU
Kilometers distance to select cities
BERLIN
2 HOURS
ISTANBUL
2 HOURS
LONDON
3 HOURS
Accessible to key global business hubs
Flight hours to select cities
BERLIN
2 HOURS
ISTANBUL
2 HOURS
LONDON
3 HOURS
Accessible to key global business hubs
Flight hours to select cities
The private sector is the key driver of economic growth, employment and innovation in Ukraine and SMEs represent its backbone in that they account for over 90% of businesses and employ two-thirds of the active working population.

The average salary, at $156 per month based on current 2015 figures, is significantly below regional peers in CEE. At the same time, proximity to the large EU market makes Ukraine a competitive alternative to Southeast Asia, especially for industries demanding short supply chains and fast production cycles, such as textiles, apparel or footwear. Delivering goods in two days to European hubs versus a shipping container travelling from Asia over 40 days is an unbeatable advantage.

Electricity and other important cost components are significantly lower in Ukraine than in other European countries, a key factor in selecting a manufacturing platform. Based on current tariffs, electricity prices for industrial enterprises are much lower in Ukraine than neighbouring Poland (-25%), Czech Republic (-25%) or Slovakia (-37%). As a result, many European companies in textile, automotive, FMCG and home appliances are producing goods in Ukraine.

Ukraine is continually improving its logistics infrastructure. According to the LPI index that ranks countries according to their logistic efficiency, Ukraine rose from 66th place in 2012 to 61st (out of 160 countries) in 2014, thus outperforming its CIS peers in terms of trading costs and the potential for global integration. Current market conditions create real opportunities for both new entrants to the Ukrainian market as well as foreign investors already operating in Ukraine.

Of the problems we had when we first came here in 2003, 90% have gone. The Danish Business Association and the European Business Association are constantly working through the administration to make life easier for investors. Ukraine is a good investment country; it's also a good country to live in. Ukrainians are highly educated, and here they are more Western-minded in business and politics.
Lars Vestbjerg,
CEO of SIKA Footwear and President of the Danish
Business Association


Your takeaway? Ukraine is open for your business!
We help savvy businesses to invest and trade with Ukraine NOW!
Your takeaway? Ukraine is open for your business!
We help savvy businesses to invest and trade with Ukraine NOW!
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