Doing business Ukraine
Ukraine ist the largest state in Europe bordering Romania, Moldovia, Hungary, Slovakia, Poland, Belarus and Russia, and has a population of 42.5 mn people. The average age is 41 years. The official currency of Ukraine is the hryvnia. Kiev is the country’s capital with 2.6 mn people, followed by major cities such as Kharkiv, Dnipro and Odessa.
With a market of more than 40 million consumers, its geographical location, European cultural traditions, visa-free entry for citizens of many countries, and a plan for modernization to align with Western values, Ukraine offers many business opportunities. Some aspects of Ukraine as an attractive country for investments are the Association Agreement with the EU, a good education system, multiple reforms in all sectors, and simplified taxation for small businesses and private entrepreneurs. Property, labor, and services have become extremely price competitive, significantly reducing the costs of market entry. For agricultural businesses, Ukraine offers some of the best soil in the world and is well-known as the “bread basket” of Europe.
In the past 5 years significant fiscal consolidation has been carried out, energy tariffs and social assistance reformed, the transparency of public procurement enhanced, business regulations simplified, the banking sector stabilized and restructured, a new health reform package adopted, and new anti-corruption agencies and asset disclosure for public officials have been established.
In 2018 Ukraine’s GDP was EUR 114.3 bn with a growth rate of 3.3 %.
Ukraine has recently become one of Europe’s leading IT outsourcing and software development centers. In addition, the country has one of the best e-procurement systems, ProZorro, which enables foreign companies to participate in government tenders without a physical presence. This system has earned Ukraine international awards, including a World Procurement Award and Gold in the Open Government Award 2016 competition. The biggest challenge in using this new system is the fact that not many companies actually know about this cost-free business opportunity.