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Ukrainian exports: war challenges and global success

17/ 07/ 2024
  The war has significantly impacted the work of Ukrainian exporters, but it has not stopped their development. On the contrary, many companies have been able to adapt to the new conditions and even expand their presence in international markets. TerraFood, ALC Striy Avto, and Vents – three Ukrainian companies successfully operating in international markets – shared their experience in entering and developing export activities during the war at the “Exporters: Talk & Network” event, organized by the European Business Association in partnership with OTP Bank. TerraFood, one of the leaders in the Ukrainian food market, represented by Maksym Voytovych, Vice President of Strategic Initiatives, reoriented its export strategy towards the European Union after the full-scale invasion. Despite initial difficulties related to logistics and the need to gain the trust of new partners, the company was able to successfully resume exports in April 2022. TerraFood is actively investing in production development and adapting its products to the requirements of the European market, focusing on unique offerings that can interest European consumers. Anna Shevtsiv, CEO of ALC Striy Avto, presented the company, a manufacturer of passenger transport seats, and noted a radical change in the attitude of European partners towards Ukrainian products since February 2022. Today, Made in Ukraine has become a sign of quality and reliability. The company is actively developing cooperation with Ukrainian suppliers, investing in production automation and business localization, which allows it to offer competitive prices in the European market. Vents, a leading manufacturer of ventilation equipment, successfully diversified its export markets after losing the Russian and Belarusian markets. The company continues to actively develop in the markets of Europe, Asia, and other regions, despite the difficulties associated with logistics and the increase in production costs. Vents, together with its partners in the BLAUBERG GROUP, are expanding production capacity abroad and are actively seeking new opportunities for growth, as Oleksiі Postupalenko, Deputy Head of the Board of Vents, explained. However, the threat of shelling, destruction of production facilities, shortage of skilled personnel, complicated logistics, instability of Ukrainian legislation, as well as the financial system and fluctuations in the hryvnia exchange rate remain common challenges for all manufacturers. The speakers noted that it is important to maintain constant contact with partners, inform them about the situation in Ukraine, and seek joint solutions to problems. In addition, it is necessary to carefully study all the terms of contracts, especially regarding dispute resolution and choice of jurisdiction; it is not worth relying on one sales market, it is better to diversify export activities; production localization can help reduce costs and increase product competitiveness; production automation can help improve efficiency and reduce costs, and building a strong brand can help attract new customers and increase the loyalty of existing ones. The participants of the discussion expressed different opinions regarding the prospects of European integration for Ukrainian producers. Some believe that this will open new opportunities for exports and investments, while others believe that this will create additional risks and challenges. We thank the speakers for sharing their experience in entering and developing export activities during the war. Special thanks to OTP Bank for their cooperation!
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The war has significantly impacted the work of Ukrainian exporters, but it has not stopped their development. On the contrary, many companies have been able to adapt to the new conditions and even expand their presence in international markets. TerraFood, ALC “Striy Avto”, and Vents – three Ukrainian companies successfully operating in international markets – shared their experience in entering and developing export activities during the war at the “Exporters: Talk & Network” event, organized by the European Business Association in partnership with OTP Bank.

TerraFood, one of the leaders in the Ukrainian food market, represented by Maksym Voytovych, Vice President of Strategic Initiatives, reoriented its export strategy towards the European Union after the full-scale invasion. Despite initial difficulties related to logistics and the need to gain the trust of new partners, the company was able to successfully resume exports in April 2022. TerraFood is actively investing in production development and adapting its products to the requirements of the European market, focusing on unique offerings that can interest European consumers.

Anna Shevtsiv, CEO of ALC “Striy Avto,” presented the company, a manufacturer of passenger transport seats, and noted a radical change in the attitude of European partners towards Ukrainian products since February 2022. Today, Made in Ukraine has become a sign of quality and reliability. The company is actively developing cooperation with Ukrainian suppliers, investing in production automation and business localization, which allows it to offer competitive prices in the European market.

Vents, a leading manufacturer of ventilation equipment, successfully diversified its export markets after losing the Russian and Belarusian markets. The company continues to actively develop in the markets of Europe, Asia, and other regions, despite the difficulties associated with logistics and the increase in production costs. Vents, together with its partners in the BLAUBERG GROUP, are expanding production capacity abroad and are actively seeking new opportunities for growth, as Oleksiі Postupalenko, Deputy Head of the Board of Vents, explained.

However, the threat of shelling, destruction of production facilities, shortage of skilled personnel, complicated logistics, instability of Ukrainian legislation, as well as the financial system and fluctuations in the hryvnia exchange rate remain common challenges for all manufacturers. The speakers noted that it is important to maintain constant contact with partners, inform them about the situation in Ukraine, and seek joint solutions to problems. In addition, it is necessary to carefully study all the terms of contracts, especially regarding dispute resolution and choice of jurisdiction; it is not worth relying on one sales market, it is better to diversify export activities; production localization can help reduce costs and increase product competitiveness; production automation can help improve efficiency and reduce costs, and building a strong brand can help attract new customers and increase the loyalty of existing ones.

The participants of the discussion expressed different opinions regarding the prospects of European integration for Ukrainian producers. Some believe that this will open new opportunities for exports and investments, while others believe that this will create additional risks and challenges.

We thank the speakers for sharing their experience in entering and developing export activities during the war. Special thanks to OTP Bank for their cooperation!

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