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Investing in Ukraine: complex support of foreign investments

Investment consulting, Safe investing, Investing in Ukraine

Advantages of Ukraine for investing
Investing in Ukraine service (from identifying prospective object of investment till state registration of foreign investments)
Safe investing service (report on existence and good standing of your prospective Ukrainian partner)

Presently, Eastern Europe countries are one of the most attractive direct and portfolio investment destinations with exciting opportunities for business development and expansion. Among these countries Ukraine for sure is one of the leaders due to many reasons:

Developed economy and recognized competitiveness

When it was part of the USSR Ukraine was a key player in the Soviet economy, accounting for large portions of the Soviet Union's industrial and agricultural output. Today Ukraine is one of the world’s highly competitive & emerging markets and experts believe that in years to come its economy will be among the strongest in the whole CIS and Eastern Europe region.

Ukrainian free-market economy is well developed, with great potential to attract foreign investment. It also has a major ferrous and non-ferrous metal industry, producing cast iron, steel and pipes. Ukraine is a rich country in natural resources, particularly in mineral deposits and other important energy sources, such as coal, hydroelectricity and raw materials for steel-making. Ukraine has very tender and agri-friendly climate and its soil is the richest in the world, which creates great opportunities for agricultural business. That is why these days Ukraine is among the largest global producers of grain, sugar, meat and milk products.

Today, Ukraine's foreign trade represents more than 50% of GDP, which has played a decisive role in country's economic growth and development. It is in the top 40 countries worldwide for both imports and exports (grains, steel, fertilizers are among its main export products). Ukraine’s trade (imports and exports) is dominated by engineered products, metals, chemicals, textiles, transport equipment and agricultural products. Ukraine trades mainly with the EU and NIS countries. A member of the WTO, the trade policy of the country is based on the free trade principles of promoting exports while minimizing barriers on imports.

The proximity of the most powerful economy in the world has a great impact on Ukrainian economic development. Over the past several years, many European industries are being outsourced to Ukraine. Many overseas companies have chosen to invest in Ukraine in a wide range of activities and sectors (mainly textiles and clothing, food-processing, agri-business, engineering, information and communication technologies, pharmaceuticals and medical devices). New high-tech industries and services are slowly emerging and there are opportunities for overseas investors in high tech R&D.

Ukraine is the country with great number of free trade agreements, in particular, with all former USSR countries. Ukrainian laws provide for various forms of incentives to support economic investment in Ukraine. Importantly, the EU and Ukraine shall be linked by a Free Trade Agreement (FTA) since 2011, under which all custom duties are eliminated. This makes Ukraine even more attractive destination for trade and investments in the future.

Ukraine is one of the most competitive markets in the world, which competitiveness is well recognised. Ukraine's strengths include a highly educated, innovative and low-cost workforce; 50- million market of consumers; competitive commodity market; promoting cutting edge research activities in future technologies; and benefits from strategic location between the European Union and Asia making it a hub for the transit of various products in the region and in the world.

Influx of foreign direct investment

Inflow of foreign direct investment (FDI) into Ukraine has risen significantly. Ukraine is the CIS region's largest FDI recipient the second-most attractive country in terms of FDI per capita after Russia. Ukraine has the best performing economy in the whole CIS and Eastern Europe and is considered by foreign investors as a model of economic stability. The main investors are Cyprus, the Netherlands, Germany, Switzerland, the United States and Japan.

Ukrainian laws establish various forms of incentives to support economic investment in Ukraine. E.g. all foreign investors are entitled to the following guarantees: (a) national treatment to all investors, (b) 10-year protection against legislation change (grandfather clause), (c) ban to nationalize, confiscate or seize investment by governmental authorities, (d) reimbursement of all damages caused to investor, (e) a right to wind up your business and repatriate profits, etc.

Ukraine is one of the emerging countries most open to trade and foreign direct investment. Recently, and despite the international financial crisis of 2008-2009, FDI in Ukraine has increased sharply, mainly in land, information technology, biotechnology, oil exploration and facility services. And it`s only gaining momentum!

Many incentives for business and modern European legislation

The business development policies of Ukrainian government include tax reduction, support of private initiative and investments in logistics and technology, education and other infrastructure.

Entrepreneurship in Ukraine is easier than before and encouraged by government (Ukrainian VAT and corporate taxes are the lowest in Europe; one can also switch to flat tax). Ukrainian environmental protection laws are very liberal comparing to highly developed countries, which has positive impact on production.

Ukraine enjoys modern and up-to-date investment legislation in line with international standards (Ukraine ratified and transposed the WTO Agreement on Trade-Related Investment Measures (TRIMs), Convention on the Settlement of Investment Disputes Between States and Nationals of other States (Washington, 1965) and International Centre for the Settlement of Investment Disputes Agreement (Seoul, 1966).

Favourable geographical location & excellent transport infrastructure

Having extremely favourable geographical location, Ukraine is an entry point to the Europe and Asia; it administers all major rutes, and thus most traffic. Ukraine is, at the same time, a gateway to CIS countries and Eastern Europe. This geographical position has a growing importance in view of the new 27 European Union and especially after formation of free trade zone between EU and Ukraine that will lead to the birth of the one of the world's largest transhipment area. In fact, it is able to intercept trade flows from/to Asia, EU area and countries of the CIS.

National logistics equipment is based on a set of infrastructures and logistics hubs that have allowed Ukraine to develop its transport sector.

Maritime trade is very developed and ports play a vital role in the Ukrainian economy (as a consequence Ukraine has 18 sea ports with developed infrastructure). The recent expansion of Odesa, Pivdeniy and Illichivsk ports have greatly enhanced these capabilities. However, investments in logistics sector remain very lucrative.

Thus, if you want substantially reduce your business costs, increase company’s competitive advantage and be ahead of your competitors, invest in Ukraine.


See presentations on investment opportunities in Ukraine: Presentation 1 & Presentation 2

Watch extended presentation about investing in Ukraine


In order to safeguard your investment project and obtain governmental guarantees, your investment needs to be registered with local authorities. Only when investment is registered, you can enjoy national treatment equal to residents and secure 100% your project. Our INVEST IN UKRAINE service can assist you in this matter. Our expertise includes evaluation of investment environment in terms of law and regulations, infrastructure, tracing a promising object for your project, investment promotion and registering your investment with competent government bodies. Our aim is to take away from our customers the obstacles and complexity of investing. If you'd like to investigate trade opportunities with Ukraine, do not hesitate to contact us.

To order INVEST IN UKRAINE service, contact us at info@kpl.net.ua
(all communication between the customer and Marketplace is confidential)

In short, Marketplace can be your gateway to great Ukrainian potential!

Take a look at our latest articles about investment activity in Ukraine:

Foreign investment in Ukraine
Ukrainian foreign economic, business, investment and commercial regime

In order not to be hooked by fraudsters and cheated by dodgy contractors or fly-by-night companies, CHECK a BUSINESS PARTNER BACKGROUND AT ALL TIMES! Marketplace is able to help you check a counterpart’s background by acquiring information on companies, incorporated under Ukrainian jurisdiction. Getting detailed and accurate information on a partner's history and track record is vital for you to evaluate carefully the risks involved in any investment project. Doing it yourself without proper expertise can be dangerous and expensive. Marketplace offers a good alternative.

To help companies evaluate the reputation of a potential Ukrainian business partner, our SAFE INVESTING service provides you with objective, detailed and in-depth evaluation report on Ukrainian companies, with which you are planning to cooperate and have any dealings. We investigate the financial strength of a company and provide useful information gleaned from the national and local authorities, business contacts, and other legitimate sources. Because we are familiar with the obstacles, which foreign companies face while operating in Ukraine, we focus on failure prevention and informed decision-making.

Our experience and differentiated background enable us to offer a detailed Due Diligence report, including:
• Existence and legitimacy of Ukrainian company;
• Company registration date;
• Company’s number in the Consolidated state register of enterprises;
• Company’s owners, their shares and top management positions;
• True address of the counterpart and contacts;
• Branches and affiliates (if any);
• Key banking and financial information about the Company, amount of the statutory fund;
• Fields of the Company’s activities, main products or services and trademarks;
• Basic market information, including sales and profit figures, potential liabilities;
• Courts rulings against the Company (in commercial, civil, labor, administrative, criminal cases);
• Bankruptcy or liquidation proceedings against the Company (if applicable);
• Creditworthiness and credit recommendations.

Because we possess an outstanding due diligence expertise, we also provide you with an opinion regarding reliability of the Ukrainian company or individual you have selected to do business with, as well as an opinion on the relative strength of the sector in your target market, which helps clearly understand the business environment. We always base our conclusions on sound analysis and in-depth business expertise, allowing our clients to take informed and accurate decisions, based on a clear picture of the business partner. A list of our current clients includes a wide range of financial organizations and agencies, investment banks and a number of privately and publicly held companies. Our extensive knowledge of Ukrainian businesspeople and industry professionals, understanding of opportunities and challenges of the market, let`s us provide information that is not available through public sources.

Delivery: Within 5 business days after receipt of payment.

Cost – 500 USD (No hidden costs, all taxes and state duties are included). As every company is personally visited by our specialist in charge, the fee applies to companies located in Kyiv or near. An additional fee will be charged to visit companies in other locations of Ukraine.

This service is of reasonable price, effective and easy way for your company to identify reputable and reliable producers, buyers or distributors for their services or products and is especially designed for foreign companies looking for business partners throughout Ukraine.

To order SAFE INVESTING service, contact us at info@kpl.net.ua
(All communication between the customer and Marketplace is confidential. Reports are prepared specifically for the clients and are never revealed to third parties)

Knowing that your prospective business partner is a trustworthy and reliable, gives you opportunity to minimize risks and avoid financial losses!

   
 
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