BDO in Ukraine, in partnership with the Norwegian-Ukrainian Chamber of Commerce (NUCC) held an online event entitled “Norway and Ukraine: Opportunities for Productive Cooperation in Today’s Conditions”, as part of BDO’s series of events on the development of international activities of Ukrainian entrepreneurs.
The event was supported by the Embassy of Ukraine in the Kingdom of Norway and attracted numerous participants interested in developing business in the Norwegian market. Both Ukrainian and foreign speakers were involved in the event, sharing their useful advice on effectively establishing relations with the Norwegian partners.
The moderator of the event was Vira Savchenko, the CEO of BDO in Ukraine. For almost two years now, Ms. Vira has been actively working on attracting financing to Ukraine for the private sector and finding new opportunities for Ukrainian companies on international markets. Norway, due to its investment openness and high standards of legal protection of investors, is an attractive market for Ukrainian business. Therefore, the main goal of the event was to reveal the potential cooperation between the Ukrainian and Norwegian entrepreneurs.
The event began with a general overview and update on Ukrainian-Norwegian economic relations. Oksana Haiduchok, the First Secretary for Economic Affairs at the Embassy of Ukraine in Norway, spoke about the recent changes in Ukrainian-Norwegian relations, as well as requests from Ukrainian companies regarding export and the main challenges faced by Ukrainian entrepreneurs. She noted that the requests from Ukrainian entrepreneurs often come without proper analysis and understanding of the Scandinavian market, so potential exporters should pay attention to this fact. Ms. Oksana also emphasized the need for greater internationalization of Ukrainian business.
The Managing Director of the Norwegian-Ukrainian Chamber of Commerce Kjartan Tveitnes spoke about the status of Norwegian-Ukrainian cooperation. He noted that the bilateral trade between Norway and Ukraine has increased by an impressive 372% from 2015 to 2023, reaching NOK 2.1 billion (approx. EUR 190 million) in May 2024. The main products that Ukraine exports to Norway are the food products, grain, fruits, wood, metals, vegetable oils, pharmaceuticals, chemicals, equipment, and light industry products. In turn, Norway imports seafood (including salmon, mackerel, cod), used cars, agricultural machinery, food processing machines, weapons, and ammunition into Ukraine.
Mr. Tveitnes also mentioned that the greatest potential for increasing Ukrainian exports to Norway lies in the agricultural sector, in particular, through supplying raw materials for fish food production, which Norway currently imports from other countries. He also talked about various projects and initiatives implemented by NUCC to promote the development of business ties between the two countries.
One of the key aspects in researching a country for business expansion are local demand and specifics of the local consumer market. Project Manager of the Norwegian-Ukrainian Chamber of Commerce Andreas Tranøy shared his own experience working in Ukraine and Norway, comparing both markets and consumers of the two countries. He noted that the Norwegian market, although small (5.5 million consumers), is still very regulated and protected, especially in the agricultural sector, and that the Norwegian consumers:
- care about sustainability, therefore, prefer sustainable, eco-friendly, and organic products
- value quality over quantity and invest in durable products
- are sensitive to prices and often travel to neighboring countries for cheaper goods, despite the high purchasing power
- are very loyal to local and national brands, especially if these brands reflect Norwegian values and traditions
- value transparency and trust in relationships with brands
Mr. Tranøy’s advice to Ukrainian companies: “Don't ask Norwegians what they need, offer what you have. And if your product/service meets their values, they will definitely pay attention to it.”
Project Manager of NUCC Anastasiia Antonyk provided useful advice and resources for Ukrainian companies wishing to cooperate with Norway. She highlighted the importance of:
- thorough market research and target audience identification;
- the analysis of competitive environment for better market entry preparation;
- participating in exhibitions, conferences, and using all possible options for establishing contacts (for example, online platforms to find partners, clients, or investors in Norway);
- using local agents and influencers for promotion in the new market.
Useful resources for Ukrainian companies that would like to work with Norway:
- Norwegian Consumer Council
- Informative “instructions” from the Norwegian customs service + tariff search
- Norway-Ukraine Free Trade Agreement (UA-EFTA)
- Norwegian version of Diia.Business
- Innovation Norway grants – Norway
- Oslo Design Fair (furniture, interior design)
- Nova Spektrum
Specialist in the development of SMEs of the Export Credit Agency of Ukraine (ECA) Denys Garasiuta spoke about the activities of ECA and its opportunities to support the exporters. ECA supports the export of Ukrainian goods and services by insuring foreign economic contracts, export and investment credits, direct investments in Ukraine, and bank guarantees. With the support of ECA, credits have already been issued for more than UAH 1.5 billion for the execution of foreign economic contracts.
Mr. Garasiuta highlighted the following advantages of cooperation with ECA for Ukrainian exporters:
- business protection against non-payments, which allows for a confident entrance to the new markets;
- verification of the reliability of the importer, which reduces risks for the exporters;
- protection of direct investments from military and political risks, which increases the confidence of foreign investors.
Speaking in detail about the conditions for obtaining insurance, Denys emphasized the need to comply with certain requirements for receiving support from EKA, including:
- ECA insurance contract: a key document confirming participation in the insurance program;
- property rights to revenue: a security that guarantees the return of funds in case of non-payment by importers;
- guarantee of the ultimate beneficial owner: a guarantee from the owner of the company, which guarantees an additional level of security for ECA.
Despite all the challenges faced by Ukrainian business during export, international expansion remains promising for investing finances and efforts. Denys Garasiuta emphasized the importance of cooperation with partner banks that provide loans secured by insurance contracts of the Export Credit Agency of Ukraine (ECA). This significantly simplifies access to financing for exporters. Today, the partner banks of ECA include PrivatBank, Oschadbank, PUMB, Ukreximbank, Ukrgasbank, KredoBank, Bank Pivdenny, Raiffeisen Bank, MTB Bank, and Kreditvest Bank.
At the end of the event, participants had the opportunity to hear from Iryna Ilyk, co-founder of the footwear brand Kasandra, which has been operating in the Ukrainian market for over 18 years. Ms. Ilyk shared her experience working with Norwegian partners and entering a new market. She mentioned that communication was easy and interesting, and that participating in the presentation by chance has led to an acquaintance with a Norwegian company interested in manufacturing waterproof footwear. This became a turning point for further cooperation with Norwegian partners.
Iryna highlighted how quickly the Kasandra team adapted to new requirements, prepared product samples, and resolved logistical issues, personally visiting Copenhagen. She emphasized the importance of open and honest communication with partners, which helped strengthen their business relations. Ms. Ilyk also talked about the challenges posed by the COVID-19 pandemic and the war, but thanks to quality products and a responsible approach to work, their partners continued cooperation. She stressed the importance of a human approach in business and clearly defined terms of cooperation, which contribute to successful communication and fulfillment of obligations.
If your company is looking to enter the Norwegian market, the team of BDO in Ukraine together with NUCC is ready to provide you with comprehensive support. From tax consultations to integration with local regulatory requirements – we will equip you with the necessary knowledge and tools for successful business operations in Norway. Please, contact us for detailed information.
For those who wish to join the Norwegian-Ukrainian Chamber of Commerce community, there is a great opportunity to do so free of charge (free membership for Ukrainian organizations is valid until the end of 2024). More details on the NUCC website.
You can view the webinar recording below.
