Ukraine market changes 2009

Ukraine has long been considered one of the most difficult countries in which to do business. As a matter of fact, it has been viewed by many as anti-business with all the regulations, red tape and the numbers of people needing to be paid to get a business or project off the ground. This has been a fact and has meant that only the most intrepid of businesses and entrepreneurs even tried, unless, that is of course, they were well connected with the ruling clans which had divided up the economy among themselves after the collapse of the Soviet Union. (In that case, there was no competition and profitability was guaranteed.)

Then came the Orange Revolution. Hundreds of thousands took to the streets to protest the government of President Kuchma, an old Soviet boss who was elected president in the 1990s but who maintained power using his administrative resources, his clan connections, corruption and the vote rigging that would have put his handpicked successor in power-Victor Yanukovych. These protests brought the government to a standstill and brought to power a westward leaning, market-oriented reformer, Victor Yuschenko.

Things are getting better and we believe this will continue. This optimism is also being felt among international investors--we are already getting 10 times more inquiries than we did at the same time last year.

And there should be optimism. Ukraine has significant investment potential. Wages are increasing which means more buying power. New and diverse products have just begun to appear in the market. Competition is low in many sectors allowing for maximal gains with minimal relative investment. This makes all industries in Ukraine growth industries.

Ukraine was once 33 % of the old Soviet economy and remains today ideally situated between the robust economy of Russia and the world's largest economy, with long borders for each. And Ukraine was once the breadbasket for the Soviet Union and has tremendous agriculture potential today with vast stretches of fertile farmland. With the right investments, it can be a world agricultural power.
Ukraine Consult, Inc. has been dealing with investments and project management in Eastern Europe since 1989 - before the fall of the Berlin Wall. We opened our first office in Kiev in 1995 and continue today helping to make our clients profitable in Ukraine.