By
Laura Clark, Milling and Grain
Ukraine, a country inhabited in its modern state since 32,000BC, has a long history of grain production, the opportunities for export for contemporary Britain are numerous.
From February 21-23, 2018 the Department of International Trade will be hosting their annual conference in Kyiv, at the International Exhibition Centre, 15, Broavskiy Ave. The exhibition will present UK nationals the chance to initiate new business ventures with potential Ukrainian clients.
Cathy Cottrell from the British Embassy in Kyiv, Ganna Drozd (DIT) and Chris Jackson from UK TAG (Technology for Agriculture and Genetics) discuss the possibilities.
Doing business in Ukraine – A few key facts
Cathy Cottrell, (First Secretary Energy Policy and Head of Commercial Section) British Embassy, Kyiv
‘The Ukrainian market is a large developed market, there are five cities with more than a million people and there’s a highly educated work force here with low labour cost. Ukraine has a strategic location between Europe and Asia, with access to black sea ports. Aside from being a world leader in agriculture there’s a broad (if aging) industrial base here and significant natural resources including oil, gas and coal.
“Yes there are issues, there is political instability, Russia’s illegal annexation of Crimea and the conflict in Eastern Ukraine; other challenges include the dominance of inefficient state enterprises, corruption and over-regulation. However, the Ukrainian government has since implemented a number of reforms to address structural imbalances, we have seen the establishment of the anti-corruption agency and a business ombudsman and the strong support from the donor community here. So although the last few years have seen macroeconomic and political challenges, the economy is returning to growth.
Growth in global prices for agriculture and steel commodities is giving a boost. There’s been a growth in investment in fixed assets, 23.7 percent year on year and an increase in consumption. We’re seeing an increase in consumer confidence and positive feedback from UK companies; industrial production recovered by 1.2 percent year -on-year in August. Substantial growth in machine building and construction, suggest investments remain strong.
Although the Ukraine parliament satisfied the IMS with the adoption of the long awaited pension reforms in October, there are other requirements, for example: adjustment of gas prices; establishment of an anti-corruption court; an acceleration of the privatisation of state owned enterprises.
Ukraine will have to reach agreements on these in order to pass the next review and to secure a fifth loan tranche; this is feasible, although difficult politically. Elections in 2019, although they seem a long way off are very much on peoples minds and the government have a tendency to avoid difficult but necessary economic policies; further reforms are necessary to secure higher levels of international investment.
UK exports to Ukraine were up 24 percent in 2016, around 374 millions pounds and the UK is the sixth largest investor in Ukraine. Some of the major companies, present on the market include: GSK; AstraZeneca; Crown Agents; Vodafone; Shell; Mott MacDonald. It’s also important to note that Ukraine is a political and trade priority for the UK.
The EU-Ukraine association agreement (DCFTA free trade agreement) are among the initial set of four EU third country agreements being explored for transition to a bilateral UK agreement. Ukraine remains a very important market for us.’
Read the full article, HERE.
Ukraine, a country inhabited in its modern state since 32,000BC, has a long history of grain production, the opportunities for export for contemporary Britain are numerous.
From February 21-23, 2018 the Department of International Trade will be hosting their annual conference in Kyiv, at the International Exhibition Centre, 15, Broavskiy Ave. The exhibition will present UK nationals the chance to initiate new business ventures with potential Ukrainian clients.
Cathy Cottrell from the British Embassy in Kyiv, Ganna Drozd (DIT) and Chris Jackson from UK TAG (Technology for Agriculture and Genetics) discuss the possibilities.
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| Image credit: Bartlomiej Mostek on Flickr (CC BY 2.0) |
Cathy Cottrell, (First Secretary Energy Policy and Head of Commercial Section) British Embassy, Kyiv
‘The Ukrainian market is a large developed market, there are five cities with more than a million people and there’s a highly educated work force here with low labour cost. Ukraine has a strategic location between Europe and Asia, with access to black sea ports. Aside from being a world leader in agriculture there’s a broad (if aging) industrial base here and significant natural resources including oil, gas and coal.
“Yes there are issues, there is political instability, Russia’s illegal annexation of Crimea and the conflict in Eastern Ukraine; other challenges include the dominance of inefficient state enterprises, corruption and over-regulation. However, the Ukrainian government has since implemented a number of reforms to address structural imbalances, we have seen the establishment of the anti-corruption agency and a business ombudsman and the strong support from the donor community here. So although the last few years have seen macroeconomic and political challenges, the economy is returning to growth.
Growth in global prices for agriculture and steel commodities is giving a boost. There’s been a growth in investment in fixed assets, 23.7 percent year on year and an increase in consumption. We’re seeing an increase in consumer confidence and positive feedback from UK companies; industrial production recovered by 1.2 percent year -on-year in August. Substantial growth in machine building and construction, suggest investments remain strong.
Although the Ukraine parliament satisfied the IMS with the adoption of the long awaited pension reforms in October, there are other requirements, for example: adjustment of gas prices; establishment of an anti-corruption court; an acceleration of the privatisation of state owned enterprises.
Ukraine will have to reach agreements on these in order to pass the next review and to secure a fifth loan tranche; this is feasible, although difficult politically. Elections in 2019, although they seem a long way off are very much on peoples minds and the government have a tendency to avoid difficult but necessary economic policies; further reforms are necessary to secure higher levels of international investment.
UK exports to Ukraine were up 24 percent in 2016, around 374 millions pounds and the UK is the sixth largest investor in Ukraine. Some of the major companies, present on the market include: GSK; AstraZeneca; Crown Agents; Vodafone; Shell; Mott MacDonald. It’s also important to note that Ukraine is a political and trade priority for the UK.
The EU-Ukraine association agreement (DCFTA free trade agreement) are among the initial set of four EU third country agreements being explored for transition to a bilateral UK agreement. Ukraine remains a very important market for us.’
Read the full article, HERE.
The Global Miller
This blog is maintained by The Global Miller staff and is supported by the magazine Milling and Grain
which is published by Perendale Publishers Limited.
For additional daily news from milling around the world: global-milling.com
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