How do
companies in Eurasia finance their trade/investment deals?
Spring 2004
Andriy Vorobyov
BISNIS Representative in Ukraine
U.S. Department of Commerce
NOTE: For the purpose of this report, Eurasia encompasses the countries
of the former Soviet Union except the Baltic States and countries where BISNIS
does not presently have representatives (Belarus and Turkmenistan).
The completion of this
report would not have been possible without the contribution of the following
individuals/organizations: Yanina Gluzova, Legal Advisor of the Ukrainian
Financial Group (www.ufg.com.ua) and
Volodymyr Sydorenko, Advisor to the Head of the National Bank of Ukraine (www.bank.gov.ua)
1. Is Business Financing Obtained Through Banks?
1.1 If yes, what are the 5 top banks in your country (by assets AND by equity/net worth)?
The
Ukrainian banking system was established in March 1991 after the adoption of
the Law on Banks and Banking Activity. Ukrainian banking system is a two-level
system and consists of National Bank of Ukraine and commercial and other banks.
National Bank of Ukraine is a central bank that develops, implements and
controls state monetary and credit policies.
As of December 2003, there were 179 banks registered in Ukraine,
including 20 banks with foreign capital and 7 foreign banks with 100% foreign
capital. In fact, there are 158 banks active with total assets of 7.3 billion
Hryvnas (about $1.2 billion) or 9% of Ukraine’s GDP. The average statutory fund
is about 46.3 million Hryvnas ($8.5 million) per bank. The top 5 banks in
Ukraine by assets as well as by equity/net worth are: Aval Bank, PryvatBank,
Ukreximbank, Ukrsotsbank and UkrsibBank.
Aval Bank
9, Leskova Street
Kyiv, 01011 Ukraine
Tel: (044) 490-8888
E-mail: office@fort.aval.kiev.ua
Web: www.aval.ua
Contact: Mr. Andriy
Rozhko, Head of Finance Market Department
PryvatBank
50, Naberezhnaya
Pobedy
Dnepropetrovsk 49094
Ukraine
Tel.: (380562)
39-01-31
Fax: (380562) 68-05-14
Е-mail: privatbank@pbank.com.ua
Ukreximbank
127 Gorkogo Street
Kyiv 03150 Ukraine
Tel.: (38044) 247-8070
Fax: (38044) 247-8082
Email: bank@eximb.com
Web: www.eximb.com
Ukrsotsbank
29 Kovpaka Street
03150 Kyiv Ukraine
Tel.: (044) 230-32-56
Fax: (044) 269-13-07
E-mail: info@ukrsotsbank.com
Web: www.usb.com.ua
UkrsibBank
prosp. Moskovsky 60
61005 Kharkiv, Ukraine
Tel.: (380572)
21-92-12, (380572) 17-75-32
Fax: (380572) 28-26-20
E-mail: office@ukrsibbank.com
Web: www.ukrsibbank.com
1.1.1. Which banks have their financial statements audited per International Accounting Standards or International Financial Standards on Accounting and since what year?
In January 1998, the
Ukrainian banking system adjusted its financial reporting in accordance with
the International Accounting Standards. All the above mentioned largest banks
have their financial statements audited per International Accounting Standards
and International Financial Standards on Accounting since 1998. For example,
Aval bank was audited in 1998-2002 by Arthur-Andersen and in 2003 by
Ernst&Young companies.
1.2 What are their major lines of lending (e.g., agribusiness; manufacturing equipment; else)?
The main lines of
lending for most Ukrainian banks are export-oriented manufacturing and
equipment purchasing as well as consumer-market oriented sectors, including
food processing, agribusiness, construction materials, packaging,
transportation/distribution, light manufacturing services, and IT/telecom.
Banks also finance the construction of residential facilities and modern office
and shopping centers mainly in Kiev and some other large Ukrainian cities.
However, in choosing projects for financing and issuing loans, banks work with
profitable and reliable companies in any sector, not just those mentioned
above. Some banks, called pocket banks which belong to large finance-industrial
groups, finance large projects in metallurgy, pipe and steel rolling
production, which, again, are mainly export-oriented industries.
1.3 What type of experience do
they have with Foreign Export Credit Agencies?
In Ukraine, not many
banks work with Foreign Export Credit Agencies. In spite of the claimed stable
local banking system and sustainable economic growth, due to high risk factors
(including political risks), FEСA mostly prefer to work
with local banks under short-term financing terms (under 3 years). Usually, the
FEСA have a very thorough approach in selecting
their partner banks in Ukraine, which is based on a strict list of criteria.
1.4 If any, what type: short term? Medium term? Long term? All? What are the terms of the lending agreement?
All
the information listed below is taken from official bank web pages and press
releases.
Ukrainian
banks have several lending agreements with Foreign Export Credit Agencies:
Loans granted under guarantee of German Insurance Company Hermes
The purposes of crediting: Export
credits intended for finance of supply of goods/ services of German origin from
Federal Republic of Germany to Ukraine. The decision on financing from the loan
of a certain share of goods/services of non-German origin is taken on a
case-by-case basis.
Currency of loan: EURO or US dollars; minimal loan amount:
EURO 250 000
– 500 000 /USD 31 000 000
(subject to terms and conditions of specific credit line).
Loan
maturity: From 1 to 7
years (12 years as an exception)
Basic terms and
conditions of loan: The loan is
intended to finance 85% of export contract value (15% of contract value should
be covered by the Borrower as an advance payment being condition president to
the disbursement).
Interest rate: Defined on the basis of the floating European rate
on the interbank market EURIBOR plus the foreign lender margin plus Ukreximbank
margin: from 12% p.a. (interest rate will also be subject to the credit rating
of the Borrower and a specific credit project).
Other payments: are defined according to the terms and conditions
of credit / credit line. Repayment of principal: by equal, consecutive,
semiannual installments.
Additional expenses: condition previous to disbursement – credit
insurance (paid for by the Importer) for amount defined on a case by case basis
subject to the loan rating, term and amount (in case of respective agreement
with the Exporter, the insurance can be paid for by the Exporter or jointly by
the Exporter and the Importer).
Basic criteria to
be met by potential Borrowers: the Borrower shall meet the following
requirements:
-
favorable credit
history;
-
good financial
standing and profitable activity as at the end of the previous year;
-
provide security
acceptable for Ukreximbank;
-
years in the business
– not less then 1 year.
Creditors: Ukreximbank and AKA (Ausfurkredit Geselschaft mbH)
/German commercial banks. Ukreximbank can also act as the Guarantor.
Loans under guarantee
of Export Kredit Fonden (EKF) of Denmark.
The
purposes of crediting: to finance export of Danish goods/services of Hungarian
production/origin from Denmark to Ukraine.
Amount
and currency of loan:
Not established
Loan
maturity: Up to 3
years
Basic
terms and conditions of loan: The loan is intended to finance 85% of export contract value (15% of
contract value should be covered by the Borrower as an advance payment being
condition previous to disbursement).
Currency
and financial terms of credit shall be defined in respective credit agreements and depend on terms of
foreign loan and credit rating of the Borrower and its credit project.
The
Borrower shall meet the following requirements:
-
favorable
credit history;
-
good
financial standing and profitable activity as at the end of the previous year;
-
provide
security acceptable for Ukreximbank;
-
years
in the business – not less then 1 year.
Creditors: Ukreximbank and Danish banks.
Ukreximbank can also act as the Guarantor or a servicing bank.
Loans granted under MEHIB (Hungarian credit insurance company) insurance
The loan is intended to
finance 85% of export contract value (15% of contract value should be covered
by the Borrower as an advance payment being condition president to the
disbursement).
Draw-down period - 1 year.
The loan is extended on
a revolving basis - there is an opportunity for the Borrower to reinvest
amounts repaid upon maturity or prematurely over the utilization period.
Interest rate: is established on the basis of the USD 3m LIBOR
floating rate plus the margin of the international lender plus bank's margin -
from 12% p.a. (also is subject to the credit rating of the Borrower and the
credit project). Repayment of principal: is performed during the maximal term
of 12 months. The first repayment installment due date falls 3 months upon the
date of each draw-down.
Additional expenses: Credit insurance is a condition previous of disbursement. Insurance premium should be established on a case by case basis for every credit project subject to its rating, term and amount of loan; it is payable within 10 days upon the date of credit approval (funds can be extended under the credit).
Program for Small and Medium-sizes Enterprises in Ukraine
After the signing of the
German-Ukrainian Consolidation Agreement, Ukreximbank renews attracting loan
funds of Kreditanschtalt fur Wiederaufbau (KfW) for the implementation of the
Program for Small and Medium-sizes Enterprises in Ukraine suspended temporarily
for reasons of rescheduling a portion of the state debt of Ukraine process.
Ukreximbank is the only
partner in Ukraine chosen by KfW in 1998 for implementing the Program. This
sign of international reputation and reliability of the bank was proved by a
successful implementation of the Program even under conditions of temporary
suspension of finance by the German lender.
The key purpose of
the Program is to promote a private
sector of Ukraine through granting short- and mid-term financial credits to
small and medium private businesses to be invested in the updating of
production or expanding their activities, including the newly formed and state
enterprises undergoing privatization.
Terms and conditions
of the Program that was launched on
the initiative of the government within the framework of efforts made by
Germany to support the process of Ukraine’s transition to market economy, are
rather attractive on the current Ukraine’s market of lending services.
Borrowers can obtain
loans for the period of 1 to 5 years for the purchase of buildings, structures,
equipment and vehicles; equipment for offices and shops; reconstruction and
updating of production facilities enterprises; construction, land improvement,
etc., for the amount of EURO 25,000 to 510,000. Such loans cover at least 80
per cent of the project value, 20 per cent being borrowers’ own contribution.
Interest rate on loans today comes to from 12 per cent per annum and depends on
credit rating of the borrower and project. Credit disbursements at the
borrower’s option can be realized in other free convertible currencies or in
Ukrainian hryvnias.
In order to receive a
loan a borrower has to meet the following requirements: a number of employees, including those working at
branches and subsidiary companies, does not exceed 500; terms of activity in the
business - at least 1 year; a share of state property - not exceeding 49 per
cent (state enterprises undergoing privatization and joint ventures are also
acceptable); a positive credit history; profitable business over the past year;
availability of security acceptable for Ukreximbank.
Funding of projects that
involve production with high environmental risks is limited. No lending is
provided for: projects already implemented through attracting other sources of
finance; restructuring of the already existing indebtedness under credits;
purchase of goods and services to be used for personal needs; placement of
investments in the form of securities; replenishment of current assets used to
pay wages and salaries, taxes and local utility services.
Ukreximbank proposes
Ukrainian commercial banks to take part in this Program. Refinancing of a
portion of KfW’s funds on terms specified by the banks with due regard for the
Program requirements is expected to be done through the banks. The banks will
also be able to use the loan funds repaid by borrowers - or those funds that
were not used for objective reasons - for widening a number of small and medium
enterprises-recipients of loans
Loans under guarantee of Export Guarantee and Insurance Corporation (EGAP)
The purposes of
crediting: to finance export of
goods/services of Czech production/origin to Ukraine.
Amount and currency
of loan: Currency of loan: US
dollars; pound sterling, Euro. Minimal loan amount: USD 500 000 (or equivalent
in specified currencies).
Loan maturity: From 2 to 5 years.
Basic terms and
conditions of loan: The loan is intended to finance 85% of export contract
value to the extent, which is covered by Export Credit Risk Insurance, on the
stipulation that at minimum 60% value of goods and services are of Czech
origin; (15% of contract value – advanced payment, which should be paid by the
Borrower being condition previous to disbursement).
Interest rate: is established on the basis of the Commercial
Interest Reference Rate CIRR plus the margin of the international lender plus
Ukreximbank’s margin (also is subject to the credit rating of the Borrower and
the credit project).
Other expenses: Defined in accordance with the conditions of giving
the credit / providing the credit line.
Repayment of
principal: by equal consistent
semiannual payments.
Additional expenses: The condition previous of disbursement - insurance
premium should be established on the case by case basis for every credit
project subject to its rating, term and amount of loan; it is payable by
importer. 85% of insurance premium can be credited under Export Credit
Insurance Policy.
Basic criteria to be met by potential Borrowers: The Borrower
shall meet the following requirements:
- favorable credit
history;
- good financial standing
and profitable activity as at the end of the previous year;
- provide security
acceptable for Ukreximbank;
- years in the business
– not less than 1 year.
Creditors: Ukreximbank and Czech Export Bank.
Credits of Export Development Canada (EDC)
The purposes of
crediting: Export credits intended
to finance export of goods/services of Canadian production/origin to Ukraine.
Amount and currency
of loan: up to USD 2 millions.
(Projects for bigger amounts can be also considered by EDC).
Loan maturity: Approximately up to 3 years (Projects for longer
term can be also considered by EDC).
Basic terms and
conditions of loan: The loan is
intended to finance 85% of export contract value (15% of contract value should
be covered by the Borrower as an advance payment being condition previous to
disbursement). Currency and financial terms of credit will be agreed with EDC
in respect of each project separately.
Basic criteria to be met
by potential Borrowers: The Borrower shall meet the following requirements:
- favorable credit
history;
- good financial
standing and profitable activity as at the end of the previous year;
- provide security
acceptable for Ukreximbank;
- years in the business
– not less than 1 year.
Creditors: Ukreximbank and Export Development Canada.
US Ex-Im Bank Program for the Financial Support of projects of Ukrainian enterprises
One of the potential
ways of attracting financing for Ukrainian enterprises through Ukreximbank can
be the program of the Export-Import Bank of the United States (Ex-Im Bank) for
the financial support of projects
of Ukrainian enterprises within the framework of the General Incentive
Agreement on the support of projects among the Government (the Cabinet of
Ministers) of Ukraine, the National Bank of Ukraine and Ex-Im Bank dated as of
December 8, 1999, provided the prospective borrower and its loan project meet
the requirements of Ex-Im Bank. This Program is purely commercial and does not
stipulate the granting of state guarantees to secure obligations under loans
attracted by Ukrainian enterprises (see basic information on the Program of
Ex-Im Bank and conditions thereof here). Under this Program, in addition to
bank’s participating as a Guarantor, co-lender and servicing bank, Ukreximbank
can ensure:
- providing advice
services for prospective borrowers regarding the effective conditions to obtain
access to financing under the Program; Ex-Im Banks requirements for the
projects documents to be submitted for its consideration; requirements for the
obtaining of respective approvals in Ukraine; procedure-related issues;
- providing services
concerned with executing applications for loans (guarantees of Ex-Im Bank) and
project documents with due regard for requirements of Ex-Im Bank;
- providing authorized
bank’s services for managing borrowers’ Special accounts of escrow type that
have to be opened under the project, etc.
Additionally,
Ukreximbank is ready to provide assistance in attracting loan funds of US banks
by Ukrainian enterprises under the guarantee of Ex-Im Bank and, if needed, in
seeking finance for Cash Payment loans; to provide high quality services in the
work out of the investment program (if a need arises); to coordinate with
lenders the loan-related documents as well as to provide services of an authorized
bank in making transactions in the interbank money market by instructions of
borrowers, etc.
The purposes of
crediting: The program envisages
credit granting for economically viable projects with Ukrainian companies
operating in any sector of the economy. Implementation of such projects have to
be connected with the import of goods and services of US production/ origin,
that were approved in accordance with the standard procedures by Ex-Im Bank and
agreed upon with the Ministry of Finance of Ukraine.
The program is deemed to
support New Projects and Rehabilitation Projects.
- New Project should
initiate a new activity or production (including Projects which intend the use
of new companies, established for the implementation of the Project);
- Rehabilitation Project
should envisage the resumption of existing production, manufacturing,
transportation, processing and construction.
Amount and currency
of loan: Limit under the program is
not defined.
Loan maturity: Middle- and long-term loans.
Basic terms and
conditions of loan: Loans mean the
financing of 85% of the value of goods purchased by the Borrower/ services
required for the Project. The Borrower shall pay in cash no less than 15% of
the value of goods/services from its own or borrowed funds.
Funds provided under the
Program for the Project may be used jointly with funds provided under other
agreements signed with commercial lenders, other export credit agencies and
international financial institutions. The share of such funds allocated for
each Project shall be established on a case by case basis. Specific currency
and financial terms and conditions of such loans have not been defined. The
relations arising out of loans will be governed by corresponding credit
agreements signed between the Lenders and the Borrowers in respect of every
Project.
Guarantees of sponsors
or other legal entities involved into the Project are required (state
guarantees are not required). Security covering the Borrower’s performance of
its obligations through pledging assets under the Project (Special accounts,
sale contracts, fixed assets, local area agreements, financial assets, the
Sponsor’s share of the shareholder’s equity or authorized capital of the
Borrower, insurance, title to real estate, other tangible and intangible assets
of the Borrower in Ukraine and abroad) to the extent defined by the current
Ukrainian Law. (For Rehabilitation Projects: returns from sales contracts that
were pledged as collateral shall exceed 150% of the total of principal, interest
and fees due under the Loan and the Cash Payment Loan, out-of-pocket expenses
and taxes).
Basic criteria to be
met by potential Borrowers: The
Borrower – any Ukrainian company (state or privately owned, joint venture with
or without Ukrainian stakeholders). The Borrower must have an actual production
potential, well grounded need for a loan and meet the lending standards of
Ex-Im Bank. In order to obtain a loan under the Program the Borrower shall
prove its creditworthiness as well as the ability to attract funds from other
credit sources to cover the residual amount of the Project which can not be
covered by Ex-Im Bank guarantee.
The borrower shall have:
- unrestricted right to
perform business activities in Ukraine;
- no ban imposed on the
Borrower’s company or products by the U.S. Government;
- no unsettled disputes
with the Ex-Im Bank;
- credit history with no
unsettled disputes with Ukrainian entities;
- at least a 3-year
experience in the business for development of which the loan is intended; if the
experience is less than 3 years a reliable partner-guarantor should be
introduced;
- a favorable auditor
opinion on the financial standing of the Borrower and a satisfactory report of
qualified independent consultant acceptable for Ex-Im Bank on the Project
viability from technical and commercial point of view;
- opinion of the
commission of experts on ecology submitted by an independent expert acceptable
for Ex-Im Bank;
- letter of credence
from the Ministry of Finance of Ukraine drawn up in recommended form.
The Borrower or
Ukrainian Bank acting as an agent shall open Special (escrow) accounts with
foreign financial institution which credit rating is acceptable for Ex-Im Bank.
The basic terms and conditions of the Program are defined by the General Project Incentive Agreement on the Support of Projects signed among the Government (the Cabinet of Ministers) of Ukraine, the National Bank of Ukraine and Ex-Im Bank dated as of December 8, 1999 ratified by the Supreme Council of Ukraine on November 2, 2000. (the Law of Ukraine №2084-ІІІ dated November 2, 2000).
1.5 Have they been
rated by (i) a foreign rating agency or (ii) a domestic agency?
(i)
Standard
& Poors have included four Ukrainian banks in the S&P Central and
Eastern European Banks Top 100 rating. The four include First Ukrainian
International Bank, PryvatBank, UkrSotsBank, and Aval Bank. But usually
Ukrainian banks need an international rating only if they need access to
international capital and money market funds or establish relations with large
international finance institutions.
(ii)
Credit rating
services are not developed in Ukraine. There is only one rating agency
“Credit-Rating” in Ukraine established in 2002 and its main goal now is to
develop national system of credit rating
1.5.1 If yes, by whom and what was the rating (and the date of the rating)?
Standard
& Poors have included four Ukrainian banks in the S&P Central and
Eastern European Banks Top 100 rating. The four include First Ukrainian
International Bank, PryvatBank, UkrSotsBank, and Aval Bank. But usually
Ukrainian banks need an international rating only if they need access to
international capital and money market funds or establish relations with large
international finance institutions.
1.5.2
How does the above domestic rating translate into that of a western agency?
There is no system for
translating a domestic rating into a rating used by international agencies. As
mentioned above, domestic ratings are used only in Ukraine.
1.6. Are there any
foreign banks in your country/region?
As of
December 2003, there were 20 banks with foreign capital and 7 foreign banks in
Ukraine:
Citibank Ukraine
(USA), Raiffeisenbank Ukraine (Austria), Credit Suisse First Boston Ukraine
(Switzerland), Credit Lyonnais Ukraine (France), Bank Pekao (Ukraine) Ltd
(Poland), ING Bank Ukraine (Holland), HVB Bank Ukraine (Germany). Citibank
(Ukraine) became the leader among foreign banks by financial result in 2002,
with about 22 million Hryvna (about USD 4 million), which places it sixth in
the domestic bank system.
1.6.1 Are they willing to lend money to domestic
firms and under what terms?
Foreign banks lend
money mainly to creditworthy companies with stable turnover and enough funds on
account to obtain credit resources. These requirements are usually met by large
corporations with export-oriented businesses. Small and medium companies mostly
cannot afford the high expenses associated with being the client of a foreign
bank.
Main criteria for the
borrowers:
-
not a start-up
business;
-
profitable operations;
-
transparency;
-
developed and
reliable management;
1.6.2 Are there any
examples of deals they have helped financed in your country/region?
Although foreign banks
in Ukraine have high level of capitalization, they are still very sensitive in
terms of taking risks of investing in projects in Ukraine. It is also difficult
to give examples of deals financed by foreign banks, as they do not disclose
this information. Foreign banks still do not plan to begin retail operations or
to open branches in Ukraine, but rather will remain focused on corporate
customers. It is interesting to note that foreign banks compete very little
with Ukrainian banks. They have only few common customers. They mainly finance
projects from export-oriented large Ukrainian companies or international
companies in the food processing, machine and shipbuilding, brewing, and grain
trading, as these are the most reliable clients of foreign banks in Ukraine.
2. Is Financing Obtained Through Investment/Venture Capital Funds?
2.1 If yes, which
one are the most active in your country (and region for Russia)?
The most active in Ukraine is Western NIS
Enterprise Fund - American Private Equity Fund with $150 million under
management. The Fund invests in small and medium size private enterprises in
Ukraine and Moldova. The Fund’s strategy is to identify and invest in the best
management teams operating in what are expected to be the region’s fastest
growing sectors. Since its establishing in 1992, WNISEF has committed $74
85
million into 21 27 portfolio companies in Ukraine..
Another active player
in this sector is the US company SigmaBleyzer – equity investment company,
managing the Ukrainian Growth Funds (or UGF family of funds) which invest in a
variety of Ukrainian companies and Industry sectors. The first UGF fund was
launched in 1996. The goal of UGF is investing in Ukrainian equities to achieve
substantial long-term capital appreciation for investors.
2.2 What is each
fund’s industry specialty(ies) and/or geographical focus?
The WNISEF’s investments cover a broad range of
sectors, including food processing, agriculture, construction materials,
packaging, distribution, light manufacturing, services, Internet and
technologies, and various financial institutions. In FY 2001, the WNISEF decided
to invest in the MicroFinance Bank (MFB), a banking institution that lends to
Ukrainian SMEs.
. WNISEF recently unveiled three new investment projects expected to benefit
several sectors of Ukraine’s economy. On Oct. 24 the fund announced it had allotted
$2 million in startup capital to establish a new consulting firm that will
specialize in the design and implementation of an efficient energy technology
for a wide range of local industries. On Oct. 30 the fund inked a $3 million
deal in which it acquired a stake in Ukrainian fast food chain Shvydko from
Kyiv’s XXI Century business holding, which established the brand. The fund has
also unveiled plans to pump $7 million into the creation of a specialized
mortgage bank, a first in Ukraine.
Contact information:
Natalie A. Jaresko,
President and Chief Executive Officer
Western NIS Enterprise
Fund
Kyiv 01001, Ukraine
4 Muzeyny Provulok, 3rd Floor
Tel.: (38044) 490-5580
Fax: (38044) 490-5589
E-mail: info@wnisefk.com
Web: www.wnisef.org
Sigma Bleyzer works in more than 40 different sectors and 250 companies, as well as
macroeconomic issues and the stock market. Main sectors of are: IT/Telecom,
Food processing, woodworking, machine building.
Contact information:
In the US:
Michael Bleyzer,
President and CEO
123 N. Post Oak Ln
Suite 410
Houston, TX 77024 USA
tel +1 (713) 621 31 11
fax +1 (713) 621 46 66
e-mail: sbleyzer@sigmableyzer.com
In Ukraine:
Ms. Diana Smahtina,
Head of Kharkiv office
Meytin House,
49 Sumskaya Street, office 4,
Kharkov, 61022 Ukraine
tel +380 (572) 14 11
80/81
fax +380 (572) 14 11 88
e-mail: office@sigmableyzer.com.ua
Dr. Edilberto Segura,
Head of Kiev office
21 Pushkinskaya
Street,
Kiev, 01004 Ukraine
tel +380 (44) 244 94 87/89
e-mail: office@sigma.kiev.ua
2.3 What are their
terms?
WNISEF provides portfolio companies with capital and the
necessary management tools to evolve from entrepreneurial ventures into
professionally managed companies. Proceeds from WNISEF’s equity investments of
US $1 million to $10 million are used primarily for turnaround and expansion.
Equity investments are made through the private purchase of common stock. Debt
transactions include direct loans to enterprises and lease financing for
equipment and/or property. WNISEF creates unique value at its portfolio
companies during both the pre-and post-investment stages. WNISEF arranges for
experienced western industry executives to work side by side with local
management in order to prepare and position companies for growth. Policy and
procedures for proper corporate governance and operating management are
implemented and management information systems are installed at each company.
In addition, WNISEF focuses its efforts on the strategic development and
improvement of human resources management through consulting, training and
recruiting. WNISEF ’s
exit strategy is to realize its investments through sale to an industrial
purchaser or a financial investor (foreign or domestic), listing on regional
stock exchanges, or management buy-outs. As investments are liquidated, WNISEF
may invest in short- term instruments or hold cash on deposit.
3. Is Financing Obtained Through Other Public Funded Programs (like SME support institutions, co-sponsored by local
governments/associations);
ProCreditBank
(former Micro Finance Bank (MFB)) is a development-oriented financial
institution which aims to set new standards in micro credit and other financial
services for small and micro enterprises. Launching operations in February
2001, the bank has started strongly, disbursing over 5,000 loans for USD 33
million to Ukrainian small and micro enterprises during its first 18 months of
operations.
Shareholders and
founders of MFBthe bank: EBRD, IFC, Western NIS Enterprise
Fund, German-Ukrainian Fund, Internationale Micro Investitionen AG (IMI), The
Stichting DOEN
Contact information:
Volker Renner, General
Manager
Micro Finance Bank
Bozhenka, 86
Kyiv
01000 Ukraine
Tel. (044) 490 60 40,
Fax (044) 490 60 81
E-mail: procreditbank@procreditbank.com.ua mfb@mfb.com.ua
Web: http://www.procreditbank.com.ua/en/index.html.php
http://www.mfb.com.ua/en/
3.1 If yes, which
ones? What are
their terms and instruments?
Microfinance BankProCreditBank
lends money to Ukrainian SME on the following terms:
MFB's bank’s borrowers
can be the following persons/enterprises
Private businesses;
Small enterprises in
all spheres of economic activity that are not state owned (with permanent staff
of not more than 150 persons).
Loans are repaid in
equal monthly installments.
Interest is paid only
on the outstanding principal.
Only bank staff
performs credit analyses.
MFB's credit terms:
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Business and Investment
loans:
·
amount and currency
of loan: from 20000 USD (or an equivalent in UAH, EURO)
·
interest rate: from
1,16% per month
·
loan term: up to 36
months
·
loan disbursement:
48 hours from the moment of finishing the credit analysis
Pro Business Loans:
1)
·
amount and currency
of loan: up to 10000 USD (or an equivalent in UAH, EURO)
·
interest rate: from
1,66% per month
·
loan term: up to 24
months
·
loan disbursement:
24 hours from the moment of finishing the credit analysis
·
possible with 50%
collateral
2)
·
amount and currency
of loan: up to 20000 USD (or an equivalent in UAH, EURO)
·
interest rate: from
1,25% per month
·
loan term: up to 36
months
·
loan disbursement:
24 hours from the moment of finishing the credit analysis
Express Loans:
·
amount and currency
of loans: up to 1800 (2800) USD (or an equivalent in UAH, EURO)
·
interest rate: from
2% per month
·
term of loan: up
to 12 (18) months
·
loan disbursement:
24 hours
·
possible without
collateral
Collateral:
Personal belongings
Real estate
Equipment
Vehicles
Goods
Collateral and guarantees of third parties
Loans can be disbursed in UAH, Euro, and US Dollars
Loan restrictions:
1. Statutory capital
2. Production of tobacco and/or alcohol
3. Production and/or sale of arms
4. Ecologically harmful production
5. Security trading
6. Casinos
4. Is Self-Financing an Important
Factor in Business Financing?
Self-financing
remains an important financial instrument for small companies, which don’t have
access to bank or other external financing due to the lack of collateral or
other reasons (usually high interest rates on the loan and the absence of
long-term loans). For large companies
self-financing allows developing distribution infrastructure and entering new
markets in Ukrainian regions.
4.1 If
yes, are there any trends regarding the industries and the types of firms that
are able to self-finance?
Companies
usually use self-financing to invest and develop new areas of activity or
diversify existing activity. An example might be an investment projects in the
Ukraine food processing sector (imported equipment, technologies, quality raw
materials and ingredients) implemented by large Ukrainian energy and trading
corporation. Self-financing is also popular within small companies in retail
trade sector.
5. Is Leasing a Significant
Vehicle for Business Finance?
Financial leasing has
enormous potential in Ukraine in that it addresses the problems of many
Ukrainian enterprises that do not qualify for bank financing. However, the development of a leasing
industry in Ukraine has been hampered mostly by problems related to the legal
and tax treatment of lease transactions.
The legal and tax
treatment of financial lease transactions in Ukraine includes serious
disincentives to conducting financial leasing in Ukraine. Contradictions and ambiguities in
legislation make the tax treatment and rights of parties to a lease
incomprehensible. The result is that
the term ‘leasing’ in Ukraine is often misused to describe all sorts of
mechanisms used to finance the purchase of equipment and other fixed assets.
There are also market
driven factors that negatively influence the potential development of leasing
in Ukraine that also create problems for banks and other sources of
financing. Most of these factors are
related to the lack of macroeconomic stability and consequently, higher country
risk. This results in high interest
rates and lack of funding sources for lessors.
Potential lessees need to earn very high returns in order to generate
sufficient cash flow to quality for financing on a cash flow basis.
5.1 If yes, who are
the key players in your country/region?
There are currently
only a handful of financial intermediaries in Ukraine, which classify
themselves as leasing companies.
However, due to shortcomings of the Ukrainian taxation and legislation
governing leasing transactions, these companies do not carry out leasing
transactions as defined by Ukrainian law.
To discuss the leasing
industry in Ukraine, we must understand ‘leasing’ as asset financing provided
by non-bank financial intermediaries whose primary goal is to finance the usage
and/or purchase of fixed assets. Leasing
does not require licensing in Ukraine and there are not particular regulations
or requirements in place for leasing companies. A business of any form of ownership may become a lessor and there
is no legal restrictions prohibiting leasing companies from being involved in
other type of activity. These factors
make it next to impossible to measure the amount of ‘leasing’ activity in
Ukraine.
Although a Ukrainian
company may have the word ‘leasing’ in its title, it may not offer such
services or provide a negligible portion of leasing services compared to the
rest of its activities.
Most ‘leasing
companies’ use deferred sales as defined by Ukrainian law, which is the closest
financial mechanism to the international concept of financial leasing. Some asset financing institutions also use
operating leasing with a separate purchase contract.
Those lessors who
provide actual financial leases fall into two categories: 1) foreign captive
lessors who use the legal jurisdiction of the country from where the leased
asset is imported; or 2) State owned lessors or leasing funds. The latter are able to resolve the legal and
tax issues that hinder private lessors.
The majority of this
asset financing in Ukraine is provided by captive finance companies of vehicle
manufacturers. These lessors are mostly
representatives of large vehicle manufacturers, including VOLVO, Scania, MAN
and Daimler-Chrysler and include trade and finance companies of major producers
of agricultural equipment as AGCO and commercial banks. Most foreign lessors have a representative
office in Ukraine, the staff of which familiarizes clients with conditions and
requirements offered for new leases, and monitors existing projects. The most common types of leased assets are
trucks, cars, office and bank equipment, construction tools and equipment,
farming equipment, agricultural machinery and equipment for processing food
products.
Main contacts:
Ukrainian Leasing
Association
L. Tolstogo Str., 23/1
"А",
Kyiv 01033 Ukraine
Tel.: (38044)
244-3841, 244-2142, 244-3843
Tel/Fax: (38044) 244-3842,
E-mail: ukrliz@oldbank.com
Web: www.ukrleasing.com.ua
Contact: Yuriy Sosyurko,
President
Ukragrolease
84. Bozhenko Street,
office 301,
Kiev 03680 Ukraine
Tel.: (38044) 451-5730
Fax: (38044) 268-5297
E-mail: office@leasing.com.ua
Web: www.leasing.com.ua
Contact: Sergey
Cherednichenko, Director
Ukreximleasing
11 Vorovskogo str., Kiev, Ukraine,
tel./fax 219-1194, 219-2670,
E-mail: sbite@eximb.com
5.1.1 What is their
type of experience (type of industry and size of
deals)?
Some of leasing
companies do not have certain specialization and work with clients from
different industry sectors. They select areas of their activity based on
viability of the projects submitted for financing by the client. As an example
of such company might be State-owned company Ukreximleasing, which is a part of
Ukreximbank. There is another type of leasing companies in Ukraine with
experience in specific industries and these companies can be divided into two
groups: representatives of large vehicle, equipment and machinery (both
industrial and agricultural) manufacturers, including VOLVO, Scania, MAN and
Daimler-Chrysler, AGCO and independent companies, which works with equipment
manufacturers and commercial banks.
5.1.2 which leasing
companies are independent and which ones are captive to a particular
bank/industrial group
Those lessors who
provide actual financial leases fall into two categories: 1) foreign captive
lessors who use the legal jurisdiction of the country from where the leased
asset is imported; or 2) State owned lessors or leasing funds. The latter are able to resolve the legal and
tax issues that hinder private lessors. Most of foreign lessors have their
representative offices in Ukraine and the staff of which familiarizes clients
with conditions and requirements offered for new leases, and monitors existing
projects. There is also leasing companies that belong to a particular bank or
industry groups.
5.2 What are the
prerequisites to qualify for a leasing arrangement and what are the terms?
Prerequisites to
qualify for a leasing arrangement:
stable financial
condition of lease-holder;
availability of liquid
assets;
hull insurance of
object taking as collateral for the whole validity of leasing contract
Leasing terms:
leasing period - three
years;
interest rate to the
sum of unpaid machinery or equipment cost - 14-20
percent per annum
initial
payment - 20-25 percent;
single
compulsory payment (insurance, notarial services) – 3-6 percent
availability
of bank guarantee to the sum not less than 20 percent of the cost of machinery
or equipment leased
Small and mid-sized
firms in particular can access lease finance more quickly and simple than
conventional loan financing because leasing does not always require additional
security or a strong credit history and balance sheet. Because
a leasing company retains legal ownership of the assets, it enables enterprises
to qualify for use of leased equipment based on its generated cash flow rather
than on its credit history or capital base.
Moreover, the amount of initial capital a lessee needs is less then
other forms of conventional financing, freeing up much needed cash flow for the
lessee.
5.3 Has any
legislation been adopted in your region/country regulating leasing activities
and if yes, when? Is any related legislation pending?
In December 1997, the
Ukrainian Parliament adopted the first Law on Leasing, which currently provides
the legal foundation for these transactions.
Tax treatment for lease transactions are covered in the Law on the
Corporate Tax and Law on VAT. These
laws need to be modified to provide a consistent approach to the treatment of
lease transactions such that parties to a lease transaction will be able to
assess confidently the risks and costs involved. Ukraine’s inefficient civil
court system increases the risk to lessors in settling potential disputes with
lessees as it hinders investment in general.
Legal proceedings in Ukraine tend to be slow, expensive and lack
transparency. This makes it much more
difficult for domestic lessors to raise long term, lower-cost funds from
foreign capital markets as well as frightens off foreign lessors from entering
the Ukrainian market. Another factor that removes an economic
incentive from leasing is Ukraine’s outdated depreciation policies.
6. Is Financing Obtained Through Other Sources (savings; black market loans; offshore
investment, barter; countertrade; etc.)
Small companies, since they have difficulties
in access to bank’s finance resources, can self-finance their trade deals or
invest projects from their savings/profit incomes. Larger companies can finance
deals or invest projects from their offshore accounts (usually from Cyprus,
Luxembourg and the U.S) – in this case statistics show these operations as a
foreign investment into local economy. But detailed
information on ‘other sources’ is not available.Other sources of
capital exist, but remain in an earlier stage of development. A generally low
level of liquidity characterizes the securities market in Ukraine. However, the
First Securities Trading System (PFTS) has emerged as the leading stock
exchange, with almost 70% of the country`s total trading volume. Some 290
companies are listed on the exchange with an annual trading volume of just over
$1 billion in 2002 and market capitalization of more than $3 billion. The
security instrument of choice among investors in the marketplace today is a
corporate bond. Government and corporate bonds began trading in Ukraine in 2001
and in 2002 new issues totaled a record level of $772 million. These relatively
new flexible instruments enable Ukrainian companies to attract additional
capital for expansion and development, while increasing their transparency
through the bond placement and disclosure requirements.
7. Could you make a rough estimate (in %) about which of the above mentioned finance options (question 1 to 6) are the most frequently used to finance the following:
Micro-deals:
self-financing – 95%, banks microfinance programs – 5%
Small deals: self-financing
– 60%, banks – 30%, other sources – 10%
Medium deals:
self-financing – 5040%, banks – 5060%
Large deals – banks
(incl. foreign banks) – 50%, self-financing (incl. offshore investment) – 50%
Taking into account
that for small companies cost of loans still remain pretty high and problem with luck of collateral still exist, it is
hardly to say the situation in micro-deals and small deals financing has
chanced for better. Banks have
increased a little their role in financing medium deals. For large deals,
situation remains the same as it was during previous period. This can be
explained the fact, that large deals have been concluded mainly by large companies
and even if the role of banks have increased in their financing then large
companies are getting more and more access to the foreign finance market with cheaper
capital as
well as to
securities
market (which is also can be considered as long-term self-financing).
8. What Is the Standard
Procedure to be Followed by a Company in Your Country/Region When Applying for
Financing? How Long Does It Take?
8.1 for a trade
deal
Each bank has standard
procedures to get financing for a trade deal. They are different for long-term
and short-term loans. Almost all banks have loan a application form available
on-line and if a bank has a framework agreement signed with a client and its
credit history is in good shape then short-term working capital loans are
issued almost immediately.
For a Letter of Credit
it usually takes from one to several days to approve and the procedure is not
very different from that found in a Western bank with the only difference being
a greater number of regulations, registrations and rules applying for
international money transfer and currency exchange.
8.2 for an
investment deal?
Investment financing is
not very developed in Ukraine and even for a company with reputable business
record it is not easy to get investment financing. The value of collateral is
much less than the amount needed for financing (can be 1:3 – means when company’s
collateral is $3 million, it can get only $1 million) and companies are trying
to look for cheaper investment financing from foreign banks, using guarantees
from their foreign partners.
However, company
applying for investment financing in Ukraine, needs to fill up standard
application form and provide bank with all required documents, including solid
business plan, proving documents for ownership on all assets (land, immovable
property, equipment, etc.). Needless to say, the number of different documents
that bank can ask to provide is enormous and it [collecting and preparing all
documents] might take more time than time needed for reviewing documents by
bank. After submitting documents bank will do a due diligence and may ask a
company to provide additional documents. After defining all possible risks and
completing a check on a company and its business, the bank and the borrower
negotiate on the terms of the deal.
8.3 How much
time does it take to get a deal financed?
For a micro-deal: 1-2
days
For a small deal: up
to 3 days
For a medium deal:
from one to three weeks (two weeks in average)
For a large deal: up
to one month (usually 2-3 weeks)
The time needed to
finance a deal very often doesn’t depend on a deal amount. Usually it depends
on readiness of a borrower and project/deal complexity. Investment deals usually take up to 8-9
months in average to get financed.
9. What Are the Qualifying Conditions On the Checklist of Finance Providers When Considering a Business Proposal (List by order of importance)
9.1 For a domestic
Lender
For Trade deal:
-
Collateral/pledge
to get a loan;
-
Company
financials
-
Openness and
transparency of the company
-
Solid market
position and profit margin
-
Loan’s value (in
local currency; USD, other currency);
-
Hard currencies
exports/receivables
For Investment deal:
-
Sound business
idea;
-
Solid market
position and profit margin
-
Openness and
transparency of the company
-
Company
financials;
-
Collateral/pledge
to get a loan;
-
Tenors (= terms
to pay back a loan)
-
Interest rate on
a loan (current rate is 15-20% and it tends to decrease);
-
Loan’s value (in
local currency; USD, other currency);
9.2 For a Foreign
Lender
-
Sound business idea/trade deal structure
-
Solid market position and profit margin
-
Openness and transparency of the company
-
Accounting
Standards used (IAS, U.S. GAAP standards, else)
-
Company
financials
-
Rating from any agency
-
Tenors (= terms
to pay back a loan)
-
Hard currencies exports/receivables
-
Due diligence
conducted by a foreign/national organization
-
Collateral/pledge
to get a loan
-
Penalties for
deferred payment; - in Civil Code or
else
10. What Are the Key Obstacles for a Company to
Get Trade Financing or Investment Financing and What Are the Most Common Errors
Committed Resulting in not Getting Any Financing?
Main obstacles:
1.
Lack of
collateral
2.
Management
weakness
3.
Cost of a loan
4.
Balance sheet
weakness (e.g., lack of capital; unreliable accounting)
5.
Lack of credit lines from foreign banks
6.
Unacceptable
terms of foreign vendors
7.
Minimum amount needed
Since banks want all
types of risks to be covered, the most common errors for the company are not
covering all risks related to financing/investment financing deal.
11. What Are the Financing Programs
Available in Your Country/Region Through:
11.1 U.S. Government programs (Ex-Im, OPIC,
TDA, USAID, etc.);
Ex-Im, OPIC and TDA are active in Ukraine.
Ex-Im is working on identifying correspondent banks in Ukraine but companies
can also work directly with Ex-Im. At this moment, TDA is involved in financing
about 20 feasibility study projects in Ukraine, mainly in energy, medical,
aerospace and environmental sectors.
The Overseas Private
Investment Corporation (OPIC) provides financing for projects in Ukraine and
offers insurance to U.S. investors against the risks of expropriation and
political violence in Ukraine. The
U.S.-Ukraine OPIC Agreement was signed in Washington on May 6, 1992. Since January 1994, OPIC has approved
investment insurance totaling more than US$133 million for seven projects in
Ukraine. Additionally, three
OPIC-supported investment funds have made investments totaling US$54,000,000 in
31 private companies located in Ukraine. OPIC had stopped providing support for projects in
Ukraine in 1999, because of the claim. OPIC and the government of Ukraine on December 8, 2003 signed a memorandum
of understanding enabling OPIC to resume activity in the country, with a
stipulation that the parties conclude by January 1, 2005 an agreement to settle
an insurance claim on an OPIC-supported project in Ukraine. In March 2004, OPIC announced that it
would provide $3.8 million in political risk insurance to a U.S. small business
involved in a joint venture that will manufacture suspension systems for
railroad freight cars in Ukraine. The project will provide substantial benefits to
the Ukrainian economy, which relies on both its rail system and heavy industry.
In the new project,
OPIC will provide insurance to Hansen, Inc., of Pittsburgh, PA, for the
manufacture of railroad freight car suspension systems, including friction wedges,
side bearings, and center bowl liners, to be sold primarily in Ukraine, and
potentially in Russia. The OPIC insurance will also cover the lease of Hansen’s
manufacturing equipment and use of its patented technology.
11. 2
Multilateral institutions (World Bank, EBRD, ADB, IDB, etc.);
EBRD, IFC,
ProCreditBank (former Microfinance Bank) are active in Ukraine.
EBRD is traditionally
active in its support to the financial sector, small and medium businesses,
food production and processing enterprises, municipal and state infrastructure
and transport. Special emphasis is put on the energy sector reform and the
introduction of energy efficiency technologies in Ukraine. The Bank is also
using its unique experience in nuclear sector to improve nuclear safety both in
Chernobyl and countrywide. The EBRD finances new ventures and existing banks
and businesses, mainly in the private sector. These guidelines are tailored to
private companies and provide step-by-step instructions on how to access EBRD
financing.
Large projects: As a guideline, the minimum size is
EUR 5-15 million, depending on location, sector and other variables. Micro,
small and medium projects: To provide financing for projects too small to be
funded directly, the EBRD invests in financial intermediaries. Intermediaries
provide financing for projects up to EUR 5 million. Trade facilitation:
Includes guarantees for import and export-related transactions, as well as
financing to banks for on-lending to traders
11.3 Country/federal/state/regional/local
programs?
BISNIS Ukraine is not aware of these programs. Even
if these programs exist there is a lack of financing for implementing them.
These programs usually exist only on paper and in orders issued by Ukrainian
Government (Cabinet of Ministers and Regional State Administrations).
12. If Foreign Companies Are Extending Finance (credit), What Are the Common Terms?
Foreign companies, as a
rule, after 2-3 transactions, which confirm reliability of Ukrainian partner,
usually extend supplier credit or allow delay in payments (period is subject to
negotiation and depends on the risk that is applicable for the Ukrainian market
as a whole and the specific product market)
13. What Are the Most Common
Instruments for Import Payment, e.g., Confirmed LCs, Off Shore Accounts, etc.
and What Terms Are Applicable?
The most common
instruments for import payment remain wire transfers. At the same time, while
starting business with new supplier/client, companies sometimes are forced to
use confirmed LC, although this method of payment is not used widely.
14. What Positive Changes Can Be Expected in
the Future and What Is Being Prepared at the Public/Private Level to Improve
the Situation for Financing Business Development in Your Region/Country?
As a result of economic growth and increase of
Ukrainian exports, the following positive changes can be expected in the future
or are now taking place in the Ukrainian banking system to finance business
development:
-
decrease
in number of banks by closing smaller banks and merging them with larger;
-
increase
in capitalization and amount of bank’s statutory funds;
-
lowering
bank-rates on loans and commercial credits;
-
increase
in number of clients (especially SME) – this can be explained by improving
‘quality’ of clients (good credit history, deep knowledge of available
resources and ability to competently serve taken loans);
-
developing
new credit instruments and mechanisms by improving existing and implementing
new services (as an example might be developing of mortgage lending once
required legislation is adopted);
The credit and investment portfolios of Ukrainian
banks have tended to increase the number of long-term loans (more then 1 year)
as well as increase the number of loans issued to small and medium Ukrainian
companies. Agribusiness and the food processing sectors remain the leading
sectors in attracting commercial loans and credit resources. Despite of
forecasted decline in economic growth in 2002 compared to 2001, demand for
credit resources is expected to grow in the future.
15. Are there any Publications and Web Site
in English and/or Russian that Address Finance Issues?
The main business publications that address finance
issues in Ukraine are “Biznes” (http://www.business.kiev.ua/), “Halytski Kontrakty” (http://www.kontrakty.com.ua/)
and “Kompanion”
magazines (http://www.kompanion.ua/). There are also resources on the
Internet:
Association of Ukrainian Banks - www.banks.kiev.ua/ (Russian)
All about Ukrainian Banking system
– www.banker.com.ua/ (Russian)
General info on Ukraine finance market - www.finance.com.ua/ (Russian/English)
16. Is Consumer Credit Available in Your Country/Region?
During the last three years consumer credit sector has been developing
significantly. Rapid growth in landing to population is a result of many
factors, including overall economy growth, increase in personal income level
and development of middle class in Ukraine. Many banks in Ukraine work with
different stores directly on providing consumer loans to their customers and
even have small booths within the stores. Usually, it takes from two days to a
couple weeks to get loan for a customer, in case he/she submitted all required
documents and the bank approved the loan. Loan terms in general have the same
condition: not less then 20% upfront payment and documents, confirming the
person’s income. Bank’s decision on consumer credit is made in a very short
period - usually same or next day for small items and during one-week period
for car credit.
16. 1 If Yes, for what purchases the credit is mostly used for?
Consumer crediting is mostly used for buying consumer electronics (TV,
kitchen appliances, etc.), cars and real estate. Since mortgage legislation
still has been under development, loan for buying real estate in Ukraine are
still expensive and can be taken only for short period (usually for 5-year
period).
16.2 How do banks compile and evaluate credit history information?
Usually, for new clients, banks provide special questionnaire and base
it on compile client’s credit history. Other factors that play a positive role
in client’s credit history are copy of papers confirming previous repayment of
loans/credits from other banks, if there are any, and recommendation letters
from the place of work, etc. Each bank compiles his own record of clients’
credit history information and usually do not share this information with other
banks, as there is no official interbank system of collecting, tracking and
sharing of this information.
17. Are there other public or private resources available in your
country/region that could provide assistance to potential investors and/or
lenders?
The main business publications that address finance
general
business, specific industry and investment issues in Ukraine are “Biznes” (http://www.business.kiev.ua/), “Halytski Kontrakty” (http://www.kontrakty.com.ua/)
and “Kompanion” (http://www.kompanion.ua/)
magazines. There
are also resources on the Internet:
Association of
Ukrainian Banks - http://aub.com.ua/ (Russian)
All about Ukrainian
Banking system – www.banker.com.ua/ (Russian)
General info on
Ukraine finance market - www.finance.com.ua/
(Russian/English)
Online Database of Business Information in Ukraine http://www.ukrbiz.net/ (English/Russian/Ukrainian)
LIGAonline -
Informational Business Portal in Ukraine http://www.liga.ua (Russian only)
Ukraine Business
Report http://www.interfax.com/com?item=Ukr (English)