The Ukraine is Open for Business

International investors are setting their sights on ground-floor investments in promising Ukrainian sectors poised to hit the global marketplace hard.

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The moder city of Kiev (Kyiv), the capital and the administrative center of the Ukraine. (photo: Lystopad)

Repeating the Polish Miracle

Since 1989 Poland’s GDP has doubled, an economic feat often dubbed “The Polish Miracle,”. Using that blueprint, the Ukraine is positioning itself to recreate and even surpass the meteoric success of Poland and the Baltic States.

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Ukrainians participating in a Tech Camp listen to keynote speakers. American Embassy, 2012. (photo: U.S. Embassy Kyiv Ukraine)

A Workforce in Waiting

The Ukraine is a populous country of over 45 million people. It also boasts a highly educated population, with an over 98% literacy rate and 70% of Ukrainians with a secondary education or higher.

Location, Location, Location

Geographically, Ukraine is extremely well-positioned on the global marketplace.

The Lower Cost of Doing Business

In addition to workforce and location advantages, the cost of doing business in Ukraine is significantly lower than its closest competitors.

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Diesel locomotive ChME3–5947 in Vinnitsa railway station. (photo: George Chernilevsky)

Robust Infrastructure

Infrastructure is key for a manufacturing hub to sustain a large export-based economy. The Ukraine has almost 170,000 km of roadways, 22,000 km of railways, 13 sea ports and 20 passenger airports.

Attractive Entry Valuations

The Ukraine needs capital to renew and expand its industries. Banks in the Ukraine are focused on improving balance sheets, resulting in interest rates for local currency debts of over 20%.

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Chart showing historical Ukraine FDI data in millions U.S.. (source: National Bank of Ukraine)

An Upwards Trajectory

In spite of its tumultuous recent past, Ukraine’s economy is proving remarkably resilient. GDP growth is approaching the important milestone of 4% per year. The share of investment in the GDP is also trending upwards, approaching the 20% standard consistent with strong and sustainable economic growth.

Keeping Up with Huawei

The Chinese powerhouse Huawei is already reaping the benefits from tapping economic potential in the emerging Ukraine. Doing business there since 1998, Huawei Ukraine managed to increase smartphone sales by 30% in January-June 2018 alone. Considering that in 2017, smartphone sales only increased 3%, this is quite a move.

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Workers on McDonald’s Facade — Odessa — Ukraine. May 2016. (photo: Adam Jones)

Almost Paradise

Current market conditions in the Ukraine have created a substantial investment opportunities for both new entrants into the Ukrainian market and foreign investors already working in the Ukraine.

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