ÍÅÄÂÈÆÈÌÎÑÒÜ, ÁÈÇÍÅÑ, ÈÍÂÅÑÒÈÖÈÈ
by
RUSSIAN EMIRATES
77
Servicesand the
entertainment industry.
Running ahotel, restaurant or
a club is a very respectable and
profitablebusiness inUkraine. This
sectorwitnesses the tremendous
growth rates and itwill be
promotedby thepredictedgrowth
due to theplanned investments in
the sphereof tourism.
Like anyother countryof the
worldUkrainehas theexamples
of successful andunsuccessful
investment practices. Let us take
a look at the reasonswhy some
projects endedup in apositive
experience andothers fail. Speaking
about Ukrainewemaybe right to
say thatmost of theprojects that
fail are characterizedwith the lack
of understandingbetween the
investors andUkrainianpartners.
Theenterpriseswhere the foreign
investor cooperates closelywith
theUkrainianpartner andwhere
theyboth seek for the compromise
in case themarket conditions
changeor they facedifficulties
- turnout tobe successful. It is
true to say that themost of the
unsuccessful investment project
(there are still less those cases than
the successful stories) didn’twork
because theparties tried to impose
a very rough formal opinions on
eachother. The “Sonola”vegetable
oil trademark is theexampleof
theunsuccessful story.When the
American investment fundWNISEF
and itsUkrainianpartnerwere
got involved in the fight because
of thequalityof thepurchased
equipment. Theneachparty
stoodon a very formal position
andendedupwasting time and
money for the long international
court case. Meanwhile themarket
of the vegetableoil inUkraine
is growingwith20%per annum
thatmakes it difficult to count the
losses that theparties suffered as
a result of themisunderstanding
that lasted for four years. Those
projectswhere the foreign investors
and their Ukrainianpartnerswere
trying tounderstandone another
and adjust to the changes of the
market endedup successfully.
Meanwhile, someRussianoil
companies are theexamples
of the success stories. They are
cooperatingwithmanyUkrainian
economy’s capitalizationgrowth
is still high andwill last at least 5-
7 years. Thenew impulse for the
growthof theeconomywas given
in the fall of 2004: after the “orange
revolution”the investors became
moreoptimistic about the country
since it is going toenter the
EuropeanUnion in the future.
Nowadays themost dynamic
sectors of thenational economy
are construction,machine
building, processingenterprises,
transportation, services and
entertainment industry.
Construction.
TodayUkraine lacks residential,
office and industrial buildings
despite the fact that construction
is being very actively conducted
in themajor cities. The analysts
predict that thegrowthof the
construction sectorwill be rapid
and lasting as duringmore than10
years of theeconomic crisis there is
muchdemandnow for the services
of the construction companies.
Today the investments intonew
buildings and real estate remain
themost popular business activity
of thegroups of companies and
citizens of Ukraine.
Machinebuilding.
The localmachinebuilding
enterprises begin to satisfy the
demandof thehugemarket for
the consumer products. The annual
sector growthexceeds 15%. The
specialization and theparticularities
of the industrypromote the
development of themachine
building sector as there aremany
heavy, light and specialmachine
buildingplants inUkraine.
Processing industry remains
oneof the top fastest growing
sectors of Ukraine’s economy.
Processingof the agricultural
products remains a veryprofitable
business.
Transportation.
The remarkablegrowth in
the industrial sector of Ukraine
led to thehighdemand for the
implementationof theprojects in
the transportation field. Lately the
government is negotiatingwith the
investors theproject of the road
constructionon the concession
basis.
plants, transportation companies,
networks of thegasoline stations
andhadexperienced all themarket
changes and theprocess of the
reforms ofmanyof theUkraine’s
economybranches that ended
up in temporarydifficulties. And
during3 years they reached
outstanding results – the country
is dottedwith theup-to-date
gasoline stations, theRussians own
twooil-refiningplants, themarket
shareof theRussianoil companies
grow faster than themarket itself.
Therefore the investment activity
inUkrainewill not be aproblem
for thosewho realize theproblems
andpossibilities of the fast growing
markets andwho knows how
to change theobstacles for the
benefitsworking closelywith the
local partners. Speaking about
owning andmanaging abusiness
inUkraine it isworthmentioning
that business traditions of the
country arebasedon themorality
andhuman relations factors that
hadbeendeveloped in the times
of theUSSR among the leaders
of the stateenterprises. Therefore
in the competingbusiness
environment youmay findout
that one companymayhelp the
other and this evenmayhappen
on a freebasis. Meanwhile, during
the times of theeconomic crisis
(1991-1997) thebusinessmen, the
governmental authorities and the
representatives of the local state
institutions had learned todevelop
andmaintainpartner relations
even in themost difficult times.
Sometimes theoral agreements
workmoreefficiently than the
official agreements. Many joint
ventures andprojects still work on
this basis. There canbewitnessed a
broad inter-industrial cooperation
that leads to theoptimizationof
the costs.
Thus there is a solid corporate
business culture inUkraine that
hadbeenenrichedwith the
particularities of thework in the
fast growingmarket. Thismakes it
easier to start bothbig and small
sized companies, attracting the
necessary specialists.
Thus there is a solid
corporatebusiness
culture inUkraine that
hadbeenenriched
with theparticularities
of thework in the
fast growingmarket.
Thismakes it easier
to start bothbig and
small sized companies,
attracting the
necessary specialists.
