Webinar on Business Opportunities in Ukraine for Canadian Companies: Key Takeaways
Webinar on Business Opportunities in Ukraine for Canadian Companies: Key Takeaways
BDO in Ukraine, in collaboration with the Canada-Ukraine Chamber of Commerce, successfully conducted an extensive webinar focused on exploring business opportunities in Ukraine for Canadian companies. The event provided insightful perspectives on the economic climate, infrastructure challenges, and the potential for investment and collaboration.
This event, moderated by Mark Vytvytskyy, Vice President of the Canada-Ukraine Chamber of Commerce, offered a comprehensive overview of the current economic conditions and future prospects. Having highlighted the significance of international support, Canadian speakers showcased how collaborative efforts are essential for Ukraine’s reconstruction and modernization. Additionally, the destruction caused by the war has opened vast opportunities for rebuilding, making this event essential in informing Canadian businesses about these opportunities, particularly in construction, technology, and energy sectors. Providing real-time business experiences and practical advice on navigating the Ukrainian market helped participants understand the practicalities of doing business in Ukraine.
According to Andrii Borenkov, Head of Advisory at BDO in Ukraine, Ukraine showcasing its potential for economic recovery, as despite the war, Ukraine's GDP is expected to grow by 3.2% in 2024. He mentioned that destruction of energy infrastructure has been significant, but international support, including from Canada, has been crucial in repairs and decentralizing the energy system. This has created new opportunities for investment in renewable energy and innovative solutions.
Zenon Potichnii, President of CUCC, emphasized the importance of Canadian expertise in
Ukraine's recovery process. He highlighted that the modernization of the Canada-Ukraine Free Trade Agreement (CUFTA) facilitates collaboration and investment opportunities for Canadian companies. Mr. Potichnii announced various initiatives aimed at promoting trade and investment between the two nations, including a successful project that significantly boosted Ukrainian exports to Canada and key events like the conference "Rebuilding Ukraine" and the UCANPRO online portal.
During the event, we also discussed business opportunities in Ukraine, where Vira Savchenko, CEO of BDO in Ukraine, presented valuable resources such as the Investment Opportunity Map of Ukraine, the Investor’s Guide, and the Procurement Guide. Additionally, Vitaliy Strukov, Corporate Finance Partner at BDO in Ukraine, shared examples of projects requiring investments, including the United Mining and Chemical Company (UMCC) and a Wind Electric Station.
Of course, we couldn’t ignore one of the main topics for those considering business in Ukraine – legal and tax regulations. We invited Victor Nevmerzhitsky, Tax Partner at BDO in Ukraine, to shed some light on this topic. Mr. Nevmerzhitsky provided a brief overview of the tax system in Ukraine, highlighting special tax regimes. For instance, there is a 5% turnover tax for private entrepreneurs, which is widely used for contracting IT specialists, and agricultural businesses may pay a low tax (approximately 1% of the agricultural land value) instead of corporate income tax. Furthermore, he provided details on Diia.City, which offers IT companies one of the best tax systems in Europe, flexible forms of cooperation with professionals, common legal tools for venture capital, and tax incentives for investments. As it is crucial for any business to stay informed about the regulatory environment in Ukraine, Victor Nevmerzhitsky advised working closely with local legal and advisory firms to navigate the complexities of Ukrainian regulations.
At the event, we also had the honor of welcoming Sherif Nagi, Senior Trade Commissioner at the Embassy of Canada in Ukraine. Mr. Nagi discussed the ongoing efforts to stabilize Ukraine's economy and the role of international financial aid. He pointed out that the banking system in Ukraine remains profitable due to substantial international financial aid and that the economy is projected to grow by 5% in the coming years, despite the challenges. He emphasized that continued support from international partners is essential for Ukraine's economic and social stability.
To provide details on how to manage possible risks, we invited Olga Vovk, Senior Regional Manager - Europe, Export Development Canada (EDC), to share more information with participants. Key takeaways from Olga's presentation are as follows:
Another speaker, Anna Lebedynets, presented the Financial Tools & Instruments provided by EBRD to support investors in Ukrainian businesses. Ms. Lebedynets highlighted that EBRD provides uninterrupted support to Ukraine's economy during wartime and offers tailored financing solutions, including loans structured to match long investment horizons, PIK loans, parallel and syndicated loans, acquisition financing, and risk-sharing mechanisms for political, social, and environmental factors. Key instruments deployed by EBRD for efficient outreach to the private sector in Ukraine are detailed below.
And last but not least, the President of Razom Invest Canada, Hon. Wayne Easter, shared his experience of collaboration with Ukraine. The organization's vision is to lead Ukraine's redevelopment by transferring Canadian technology and know-how. As Mr. Easter mentioned, short-term goals include proving a potato seed production model in Zhytomyr Oblast, while medium to long-term goals involve expanding potato production, introducing Canadian beef genetics, processing grains and oil seeds, and promoting green energy at the farm level. Razom's commitment to Ukraine is evident through their tangible on-the-ground efforts, achieving impressive results such as tripling potato yields using their methods.
For Canadian companies considering expansion into Ukraine, the webinar has become a key platform for gaining valuable insights, providing almost three hours of useful and practical information on operating in the Ukrainian market.
If your company is considering entering the Ukrainian market or is already operating in Ukraine, BDO in Ukraine and CUCC professionals are ready to offer comprehensive support. From tax advisory to integration with local regulatory frameworks, we will help you understand all aspects of doing business in or with Ukraine.
Contact us today to discuss how we can help your company succeed in Ukraine. Don't miss the chance to take advantage of the unique opportunities the Ukrainian market offers!
According to Andrii Borenkov, Head of Advisory at BDO in Ukraine, Ukraine showcasing its potential for economic recovery, as despite the war, Ukraine's GDP is expected to grow by 3.2% in 2024. He mentioned that destruction of energy infrastructure has been significant, but international support, including from Canada, has been crucial in repairs and decentralizing the energy system. This has created new opportunities for investment in renewable energy and innovative solutions.
Zenon Potichnii, President of CUCC, emphasized the importance of Canadian expertise in
Ukraine's recovery process. He highlighted that the modernization of the Canada-Ukraine Free Trade Agreement (CUFTA) facilitates collaboration and investment opportunities for Canadian companies. Mr. Potichnii announced various initiatives aimed at promoting trade and investment between the two nations, including a successful project that significantly boosted Ukrainian exports to Canada and key events like the conference "Rebuilding Ukraine" and the UCANPRO online portal.
During the event, we also discussed business opportunities in Ukraine, where Vira Savchenko, CEO of BDO in Ukraine, presented valuable resources such as the Investment Opportunity Map of Ukraine, the Investor’s Guide, and the Procurement Guide. Additionally, Vitaliy Strukov, Corporate Finance Partner at BDO in Ukraine, shared examples of projects requiring investments, including the United Mining and Chemical Company (UMCC) and a Wind Electric Station.
Of course, we couldn’t ignore one of the main topics for those considering business in Ukraine – legal and tax regulations. We invited Victor Nevmerzhitsky, Tax Partner at BDO in Ukraine, to shed some light on this topic. Mr. Nevmerzhitsky provided a brief overview of the tax system in Ukraine, highlighting special tax regimes. For instance, there is a 5% turnover tax for private entrepreneurs, which is widely used for contracting IT specialists, and agricultural businesses may pay a low tax (approximately 1% of the agricultural land value) instead of corporate income tax. Furthermore, he provided details on Diia.City, which offers IT companies one of the best tax systems in Europe, flexible forms of cooperation with professionals, common legal tools for venture capital, and tax incentives for investments. As it is crucial for any business to stay informed about the regulatory environment in Ukraine, Victor Nevmerzhitsky advised working closely with local legal and advisory firms to navigate the complexities of Ukrainian regulations.
At the event, we also had the honor of welcoming Sherif Nagi, Senior Trade Commissioner at the Embassy of Canada in Ukraine. Mr. Nagi discussed the ongoing efforts to stabilize Ukraine's economy and the role of international financial aid. He pointed out that the banking system in Ukraine remains profitable due to substantial international financial aid and that the economy is projected to grow by 5% in the coming years, despite the challenges. He emphasized that continued support from international partners is essential for Ukraine's economic and social stability.
To provide details on how to manage possible risks, we invited Olga Vovk, Senior Regional Manager - Europe, Export Development Canada (EDC), to share more information with participants. Key takeaways from Olga's presentation are as follows:
- EDC is the only Export Credit Agency actively supporting Ukraine-related business directly from its balance sheet, providing uninterrupted support since the start of the war.
- EDC offers comprehensive solutions, including Credit Insurance that covers up to 90% of receivables, and Export Guarantee Programs to increase access to capital and facilitate international expansion.
- EDC provides medium- to long-term financing solutions, including direct lending and 100% guarantees to banks, to manage war-related risks effectively.
- EDC collaborates with G7 ECAs, multilateral development banks, and international banks to support Canadian exporters and investors in Ukraine.
- EDC offers valuable resources, such as reports, webinars, and a dedicated Ukraine country page, to keep Canadian companies informed about the market.
Another speaker, Anna Lebedynets, presented the Financial Tools & Instruments provided by EBRD to support investors in Ukrainian businesses. Ms. Lebedynets highlighted that EBRD provides uninterrupted support to Ukraine's economy during wartime and offers tailored financing solutions, including loans structured to match long investment horizons, PIK loans, parallel and syndicated loans, acquisition financing, and risk-sharing mechanisms for political, social, and environmental factors. Key instruments deployed by EBRD for efficient outreach to the private sector in Ukraine are detailed below.
And last but not least, the President of Razom Invest Canada, Hon. Wayne Easter, shared his experience of collaboration with Ukraine. The organization's vision is to lead Ukraine's redevelopment by transferring Canadian technology and know-how. As Mr. Easter mentioned, short-term goals include proving a potato seed production model in Zhytomyr Oblast, while medium to long-term goals involve expanding potato production, introducing Canadian beef genetics, processing grains and oil seeds, and promoting green energy at the farm level. Razom's commitment to Ukraine is evident through their tangible on-the-ground efforts, achieving impressive results such as tripling potato yields using their methods.
For Canadian companies considering expansion into Ukraine, the webinar has become a key platform for gaining valuable insights, providing almost three hours of useful and practical information on operating in the Ukrainian market.
If your company is considering entering the Ukrainian market or is already operating in Ukraine, BDO in Ukraine and CUCC professionals are ready to offer comprehensive support. From tax advisory to integration with local regulatory frameworks, we will help you understand all aspects of doing business in or with Ukraine.
Contact us today to discuss how we can help your company succeed in Ukraine. Don't miss the chance to take advantage of the unique opportunities the Ukrainian market offers!
