BDO in Ukraine recently participated in the 4th International Exhibition and Conference ReBuild Ukraine Construction & Energy in Warsaw.
This prominent event served as a platform to mobilize resources, share expertise, and foster innovation to accelerate Ukraine’s recovery. Representing the firm, Vira Savchenko and Bogdan Galkin engaged in discussions with key stakeholders, emphasizing the critical role of private sector involvement in rebuilding Ukraine’s economy and infrastructure.
The conference showcased the impressive progress being made in Ukraine’s recovery. More companies are entering the Ukrainian market, projects are being funded, and regions are benefitting from targeted assistance, resulting in new jobs and economic growth. These developments underscore the growing confidence of the international business community in Ukraine’s resilience and its potential for sustainable recovery.
However, navigating Ukraine’s complex business landscape remains a challenge for foreign companies, especially in light of the ongoing war. Market entry strategies, partnership development, regulatory compliance, and business security remain key hurdles, requiring expert guidance to unlock the full potential of opportunities in Ukraine.
Key challenges for foreign investors
International businesses aiming to contribute to Ukraine’s recovery must address the following challenges:
- Market Entry Strategies: Determining the most effective approach — through local partnerships, remote operations, or the establishment of a direct presence.
- Building Networks: Forming strategic partnerships gaining a deep understanding of the nuances of Ukraine’s business ecosystem.
- Security Concerns: Managing risks related to physical and business security through comprehensive risk assessments.
- Regulatory Compliance: Adhering to technical regulations, certification requirements, and EU-aligned building standards.
- Financing Tools: Accessing resources provided by international financial institutions (IFIs) and navigating logistical and legal complexities under martial law.
Insights on attracting foreign direct investment from the EU into Ukraine
Ukraine’s path toward EU membership is creating unprecedented opportunities across key sectors like energy, logistics, IT, and green technologies. The European Competitiveness Pact is extending EU value chains into Ukraine, enhancing resilience and promoting economic growth.
The EU’s €9.3 billion investment package, projected to attract €40 billion by 2027, provides substantial guarantees and grants, reducing investment risks and making Ukraine an attractive destination for long-term growth. Companies such as Kingspan (€280 million investment) and Bayer (€60 million investment) are already at the forefront, showcasing the potential for transformative success.
Key takeaways for investors:
- Ukraine’s Resilience: Despite challenges, Ukraine’s economy has shown remarkable adaptability, creating a stable environment for investment.
- Incentives and Opportunities: EU-backed guarantees and sector-specific incentives create a favourable time to invest.
- Commitment Beyond Capital: Investing in Ukraine contributes to the country’s recovery and integration into the EU.
Early investors benefit from unique tax incentives, access to a skilled workforce, and the opportunity to establish a presence in a rapidly recovering market.
BDO in Ukraine: your trusted partner in reconstruction
BDO in Ukraine, in collaboration with the Recovery Committee of the European Business Association, offers bespoke solutions to assist businesses and municipalities in navigating the complexities of reconstruction.
How BDO in Ukraine adds value:
- Practical Guides for Businesses: Resources to navigate procurement, stakeholder engagement, and market entry.
- Grant Cycle Services: Comprehensive assistance to maximize grant program impacts, from scheme design to evaluation.
- Support for Regions and Communities: Enhancing the capabilities of local municipalities in grant management, investor engagement, and digitalization.
- Audit and Valuation Services: Expertise for NGOs, IFIs, and donor agencies, ensuring the control of spending and the success of project.
- Corporate Transaction Support (Development, analysis and completion of investment projects and Due Diligence): Services covering due diligence, valuation, deal advisory, and fundraising for both national and foreign businesses.
BDO in Ukraine offers a comprehensive suite of services, enhanced by tools such as Investment Opportunity Map and Public Procurement Guide to equip clients with the insights and resources to make well-informed decisions. In addition to corporate support, BDO in Ukraine plays an active role in assisting local governments in the management of recovery initiatives and the attraction of investments to foster regional growth.
BDO in Ukraine is dedicated to fostering collaboration and delivering actionable solutions, thereby remaining a committed partner in rebuilding Ukraine’s future. Please contact us today to learn more about our services and how we can assist in achieving meaningful outcomes in this transformative journey.
