Ukrainian investment opportunities were presented to Luxembourg businesses
Ukraine is an essential player on the European and global stage. Despite the challenges faced by the country, Ukraine can offer numerous business opportunities for sustainable development. The European Business Association together with Global Business for Ukraine, with the support of and ArcelorMittal, the Embassy of Ukraine to the Kingdom of Belgium and to the Grand Duchy of Luxembourg, and the Luxembourg-Ukraine Chamber of Commerce, held an event called «Ukraine’s Investment Potential: New Opportunities and Tools» to showcase the investment prospects and tools available in Ukraine.
The event featured businesses from Ukraine’s market that shared their investment experience in Ukraine and ways to promote new investments (including Ukraine’s investment map by the European Business Association, Global Business for Ukraine and UkraineInvest). Investment Guide developed by the EBA partners was also presented. In addition, the results of a survey conducted among the businesses working in Ukraine were revealed, showing a cautious but positive outlook for the coming year, with a significant percentage predicting growth in various aspects of their business.
«58% of our members forecast positive business dynamics in the upcoming year, and 29% expect to keep business indicators at the same level. Also, 72% forecast growth in value and 55% forecast growth in physical terms. We are glad to see that 87% plan to increase salaries for their employees and 65% plan to invest in social projects. Despite all the difficulties, 26% plan to invest and expand investments in business initiatives», – said Svitlana Mykhailovska, Deputy Director of the European Business Association.
Nataliia Anoshyna, Chargée d’Affaires of Ukraine to Belgium and Luxembourg, emphasized the ongoing fight for Ukraine’s independence, sovereignty, territorial integrity, and European values. “With the support of true friends like Luxembourg, Ukraine will ultimately prevail over the aggressor. We urge for unity in the fight against this evil and for international support in standing against the brutality of the aggressor», – Nataliia said.
Luxembourg, known for its strength in administering investments, fund flows, asset management, back-office operations, compliance, and governance, played a pivotal role in the creation of the «Ukraine Investor Guide». Valeriia Kotsur, Managing Partner Fund AML, mentioned that the guide, available for download on the UkraineInvest website, aimed to foster synergies between Ukrainian businesses and potential investors. It acknowledged the complexity of the investment process, recognizing that investments might not directly flow into Ukraine and would involve various stakeholders.
Despite the risks associated with investing in Ukraine, Ukrainian businesses have displayed adaptability and determination. Over the past year, Ukraine has witnessed the establishment of 18 new factories, demonstrating that investors are actively contributing to the country’s development. Evgenia Paliy, Director of the Luxembourg-Ukraine Chamber of Commerce, stressed that waiting for the perfect moment to invest in Ukraine is no longer an option, as neighbouring countries like Poland and Romania have already begun seizing opportunities within Ukraine’s borders.
With abundant mineral resources, fertile soil, an educated workforce, and rich human capital, Ukraine presents numerous opportunities for potential investors and partners. The Investment Map of Ukraine serves as a comprehensive resource providing information on various regions, the prevailing business climate, available infrastructure, the quality of human capital, essential resources, and business opportunities open for investments. Projects within the Investment Map are divided between municipal (52%) and business-led (48%) initiatives. Municipal projects predominantly focus on healthcare and communal services, while business-led projects encompass a wide range of ventures, including solar power plants and initiatives related to recycling.
Dr Thomas Kruck, Counsel Investment Management at Arendt & Medernach SA, introduced different investment vehicles that can be established in Luxembourg, starting with the most regulated and ending with non-regulated club deal vehicles designed to fall outside the scope of the Alternative Investment Fund Managers Directive (AIFMD). Among them are Part II Undertakings for Collective Investment (UCI), Société d’Investissement en Capital à Risque (SICAR), Specialised Investment Funds (SIF), Luxembourg Reserved Alternative Investment Fund (RAIF), Special limited partnership (SCSp), andClub deal / non-AIF investment structure. The speaker also emphasized the potential of Luxembourg as a hub for investments in Ukraine’s construction sector.
The presentation provided by Sergiy Tsivkach, CEO of UkraineInvest, underscored the opportunities available to investors in Ukraine, highlighting the country’s resilience and potential for growth despite economic challenges and ongoing conflicts. Ukraine’s willingness to provide incentives and support to investors was emphasized, making it more favourable for those seeking investment opportunities in various sectors.
Julia Bereshchenko, ASTARTA Director for Sustainable Business Development and IR, emphasized the importance of accessing European markets, aligning with sustainability goals, and carbon decarbonization initiatives. ASTARTA made strategic adjustments in response to disruptions in seaborne transportation routes by reducing corn and wheat cultivation while increasing acreage for soybeans and sugar beets, which can be processed internally. They view Ukrainian sugar, produced sustainably from non-GMO sugar beets, as a perfect fit for European decarbonization efforts.
Artem Rempen, COO of G.R. Agro, discussed the agricultural shifts in the Dnipropetrovsk region, highlighting a significant change in crop structures, with a focus on oilseeds like grape seeds, sunflower, and soybeans due to their higher margins. He emphasized the logistical challenges they face due to the Black Sea ports being inaccessible and the increased transportation distance to European buyers. Despite the challenges, their storage facilities and processing plants in the region are operational, primarily processing sunflower seeds. They also shared plans for a plant-based milk production facility, showcasing the growing European market for such products, to supply private labels and European buyers.
The European Business Association thanks all the event speakers, participants, and partners. Our special gratitude goes to the HQ and Ukrainian office of ArcelorMittal – for providing a venue and organizational support. We thank the Embassy of Ukraine to the Kingdom of Belgium and to the Grand Duchy of Luxembourg, the Luxembourg-Ukraine Chamber of Commerce, and Fund AML for fruitful cooperation!