Doing Business in Ukraine

Exporting to Ukraine

President Obama announced the National Export Initiative (NEI) two years ago, with the goal of doubling exports by 2014. U.S. embassies are committed to supporting U.S. companies to start exporting or grow their exports to Ukraine. In this section, you’ll find an quick description of Ukraine as an export market and some suggestions for getting started.

Getting Started

• 2012 Country Commercial Guide for U.S. Companies
• U.S. Commercial Service Ukraine Services for U.S. Companies
• Background Note: Ukraine
• World Bank/2012 Ease of Doing Business in Ukraine
• 2012 Investment Climate Statement - Ukraine

Market Overview

Ukraine is a country with a poor reputation for a variety of reasons. With regards to trade and commerce, internationally recognized reporting seems to reconfirm the accepted view that Ukraine is not a prime market for U.S. products, equipment and services. In fact, the World Bank’s annual Ease of Doing Business report shows that Ukraine’s ranking in 2012 declined over all. There were some areas that had improvement, but generally the end result was a decline of -3 to 152 out of 183 countries. Ukraine is now ranked between Burkina Faso, Liberia and Bolivia and Senegal. The 2011 Global Competitiveness Indicator report paints a similar dismal picture – phrased another way, but with similar results – a decline in ranking. So does Transparency International. However, statistics collected by the U.S. Department of Commerce, Census Bureau paint a completely different picture. Based on bills of lading for U.S. manufactured goods, these statistics show that U.S. exports to Ukraine are increasing significantly. In 2010 U.S. exports to Ukraine increased by 53.19%, and in 2011 by 57.33%.

U.S. companies are doing great business in this very diverse market. Just about every business/industry needs some refurbishing of its facilities, new technology to improve production capacity or to add contemporary product lines, and all need to improve energy efficiency. Ukrainian businessmen are looking for partners and to represent U.S. products, technology and services. The private sector is growing despite the turmoil in the public sector. Ukraine’s international reputation may be poor, but business is good in the private sector! 

Market Challenges

•  Corruption
•  Bureaucratic company registration, product licensing and certification procedures
•  Unpredictable enforcement of the rule of law
•  Underdevelopment of commercial legislation
•  Unpredictability of government action
•  Lack of local financing
•  Language barrier

Market Opportunities

• Agricultural equipment and machinery
• Renewable Energy
• Oil and Gas Field Machinery
• Electric Power Systems
•  Aircraft/Parts
•  Automotive
•  Computer Software/Services and Computers Peripherals
•  Drugs and Pharmaceuticals
• Food Processing/Packaging Equipment
•  Medical Equipment
• Safety and Security Equipment
•  Travel and Tourism 

Market Entry Strategy 

Contact the U.S. Commercial Service to discuss your interest and learn about strategies for:

•  Getting prepared
•  How to avoid corruption
•  Tools of advantage
•  Resources to assist
•  Advantages of being a US company
•  Financing resources
•  Taboos 

Other Reporting :

• USDA Foreign Agricultural Service:  Exporter Guide