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It doesn't matter whether it's as close as Windsor or as far as Hong Kong or Zimbabwe, the Michigan District Export Council has someone who's been there and done that.  We encourage you to give us a try.

Ukraine

Introduction: Why you should be interested in Ukraine

Almost 14 years after separating from Russia, Ukraine is slowly transforming itself into an emerging market economy with 47 million people. As with its economy, Ukraine's political system is new and must weather another test later this year with Presidential elections, that if done properly, will signal to the West that the government of Ukraine has accepted fair democratic principles. Compared to the ten new member nations of the EU, Ukraine's foreign direct investment remains very low, almost one-twentieth of Poland's. The U.S. remains the largest investor with slightly over one billion dollars since independence. Much of this initial foreign investment has gone into food processing, construction, and consumer industries. With better corporate governance and with its new EU neighbors, Ukraine's share of FDI will likely increase because of its diversified economy, its crossroads locations between Eurasia and Central Europe, and its role as the breadbasket of this part of the world with more fertile black topsoil than any other country in the world. Ukraine also benefits from high educational standards, 100% literacy, and a well-trained workforce willing to make the transition from Soviet-style economics to market-driven management. Most recently, Ukraine adopted a flat personal income rate of 13% to encourage companies and employees to rely less on grey market economics. Improvements in infrastructure are materializing, especially in the major urban areas, and Kyiv, Ukraine's capital, is beginning to reveal itself as a beautiful and unknown tourist destination.

Doing Business in Ukraine:

More than 300 U.S. companies are represented in Ukraine and these companies were careful to perform due diligence before beginning operations in this new market, a good portion of which is still controlled by wealthy oligarchs. Old-to-market and new U.S. entrants alike carefully explore and develop local market channels for sales, joint ventures, and investments. U.S. companies are quick to explain that the benefits of working in this new economy and the hazards that still exist. Because of its diversified economy, ranging from a strong agricultural sector to manufacturing facilities for IT products, and because of its stable currency with no restrictions on repatriation of foreign profits, Ukraine is likely to sustain future improvements in FDI, GDP, wages, and overall population lifestyle and welfare. In parallel to U.S. companies coming to explore this new market, Ukrainian executives and officials have also shown a marked increase of interest in visiting the U.S. and buying from U.S. companies, to the extent, that the Commercial Office in Kyiv took 15 delegations to major trade events in the U.S. in the past year, many of which led to export successes. CS Kyiv has exhibited a sharp increase in productivity for export successes, buyer delegations to the U.S., and cost recovery programs, and has been recognized for its work by USEACs and USDOC HQ. In the last year alone, CS Kyiv has worked closely with 25 USEACs in 21 states, with HQ Export Promotion Services offices, and with OPIC and EXIM generating 140 export successes for U.S. companies!

Ukraine at a Glance:

Prospects:

>> View Country Commercial Guide

Michigan Exports to Ukraine

Market Research

Mobile Telcom Sales and Computer Equipment Manufacturing
The Ukrainian IT market has demonstrated a steady 30-40% annual growth for the past three years. Mobile telcom and its network providers are also growing rapidly. Parallel to mobile telcom, experts underline a decreasing market share of desktop systems and increasing sales of portable systems. Due to a higher rate of customs duties for imported finished PC's, as opposed to imported components, local production from imported components determines market structure. Brand-name recognition of major U.S. IT manufacturers is strong, but pricing is still the key for the Ukrainian purchaser. U.S. companies can access the Ukrainian market by tapping into a sophisticated network of agents and distributors throughout Ukraine.

>> learn more…

Agricultural Machinery and Equipment
Industry insiders estimate an immediate demand to replenish the physically depreciated farm and processing equipment in Ukraine at $5-10 billion, with an annual supply of $1-2 billion worth of farm equipment. U.S. machinery is well represented in Ukraine but there are still good opportunities for U.S. companies to enter the Ukrainian agricultural machinery market. The supply of second-hand machinery from Europe has gradually decreased, and with the recent dollar exchange devaluation, this opens up more opportunities for the American exporters of used agricultural machinery. There is currently a critical demand for dependable farm machinery due to the lack of reliable domestic manufacturing. High quality U.S. equipment can have a positive impact on Ukrainian agricultural productivity. Ukraine can offer excellent opportunities for US companies to expand to other markets nearby such as Russia and other NIS countries.

In Fall 2003, CS Kyiv worked together with the Agri-business Team, Peoria EAC and Illinois Department of Agriculture to organize a John Deere delegation to the US. CS Kyiv provided extensive visa support and market briefings for the delegation, consisting of 40 senior executives of Ukrainian companies. This trip included touring the John Deere headquarters, major factories in Moline and Waterloo, as well as a visit to an agricultural exhibition. This delegation, together with a GKS programs put together with the Des Moines EAC and the Iowa State Trade office, have led to seven major export successes and millions of dollars of U.S. agricultural equipment sales to large farms in Ukraine within the last half-year.

>> Learn More...

U.S. Product Literature Centers

The USCS Kyiv offers a Product Literature Center (PLC) program as a low-cost but effective and easy way for your company to evaluate market potential, gain exposure and explore business opportunities. Commercial specialists display U.S. company product literature at major trade shows in Ukraine, collect leads and send them directly to a U.S. company.  For $250.00 your company will get:

• Inclusion of a participating American company's contact information and short profile in a trade show official catalog prepared in Ukrainian/English;
• Inclusion in the U.S. Catalog Display pre-show promotional campaign.
• Catalogs exposure during the trade show days and a listing of potential trade partners.
• One time mail-out of a U.S. company's product catalogs.
• One-year product literature reference exposure at the U.S. Commercial Service Kiev Business Commercial Library and on their BuyUSA.gov Ukraine website

Find out where the PLCs will be next!

Contact us:

Senior Commercial Officer: Frank Carrico

U.S. Commercial Service Kyiv
Artyom Business Center
4 Hlybochytska Vul.
Kiev 04050, Ukraine
380 (44) 490-4018
http//www.buyusa.gov/ukraine/en 

Additional Information:

http://www.emich.edu/ict_usa/UKRAINE.htm  - An overview of the Information and Communications Technology Market by the US Department of Commerce's ICT Team

Date Updated: March 27, 2007