UBBC attends KSE’s conference ‘Investing in Ukraine: From Projects to Partnerships’ in London (UK) at EBRD London.

This investment conference comes at a time of continued uncertainty on the outcomes of Russia’s war on Ukraine, but the conference focused on what can be practically achieved and how investors can enter the Ukrainian market, despite uncertainty for investors. Some key facts emerged to reassure investors; from sustaining of the Ukrainian economy (4% growth this year), to the intended privatisation of large swathes of the old soviet economy (74%) of SOE’s and the drivers of income, investment and  efficiency behind this policy, the strong liquidity of Ukrainian banks, and the E90bn investment from EU over the next two years, ($30bn for the economy, $60bn for arms), the emergence of new mechanisms of insurance through IFI’s, Credit export agencies and sovereign support for exporters and investors, and advice on areas and sectors of relative tranquillity for manufacturers to invest. Corruption is being ironed out via digital transparency and visibility of bids and via the Ukraine invest portal, giving more certainty to applicants and investors. Ukraine is now 80% compliant with EU accession, up from 30% only 20 years ago. The conference was expertly convened by KSE university in conjunction with EBRD and UK International development.

The full agenda and speakers can be viewed here

AGENDA:

Dariia Marchak, deputy minister of the economy outlined the privatisation program and the various mechanisms, including PPP, part privatisation and full sale, which was supported by Giovanni Salvetti of Rothschilds, who has actioned several privatisations in Ukraine over 20 years, Andre Koelln of Uk’s FCDO explaining support for regulative and best practice improvements the UK are supporting, which will serve to reduce investor risk, Katya Gorbatiouk of LSEG, who said partial privatisation and use of aggregated funds via the exchange help to pilot privatisation and build investor confidence as Ukraine navigates how to privatise companies effectively for the long term, and how the City of London is the ideal supporting ground with expertise in managing privatisations and mentoring companies. A third panel discussed where to invest in Ukraine and which sectors most attractive: CRMs’ and green steel (mining), Energy, Defence, transport and logistics, Digital and IT, Agriculture. Yegor Perelyn said that Ukraine can be the energy and mineral driver and processor for Europe and offer a secure alternative to Chinese monopoly of Critical minerals and feed Europe with Green Hydrogen and energy. David Lorello, of Covington & Burling law said Defence will forma significant part of Ukraine’s future economy and new models of hybrid production are being delivered with the UK, reexporting drones to Ukraine, and backed by UK investment. Export credit agencies can reduce risk, tho’ export finance controls need to be adjusted to make Ukraine more attractive.

Overall, its clear Ukraine represents are rapidly growing opportunity for investment, despite the uncertainty of war, and increasingly large sums are being invested as the country reinvents itself and continues to grow sectors of the economy. IFI’s, lawyers, export agencies and Governments are working hard to derisk Ukraine for investors and do so with increasing confidence. There are now many opportunities, even during war, and areas of growth with mitigating mechanisms that derisk investment, as Ukraine makes significant strides towards EU accession, and irons out old practices and corruption. The opportunity that is Ukraine will be a key driver for European economies and the overriding message is plan now, be prepared for when the uncertainty is lifted or miss out.