Ukraine is a new technological centre of the world, a breadbasket of Europe with the most fertile lands and a huge tourism and investment potential.
Ukraine continues to carry out democratic and economic transformation and to integrate into the Euro-Atlantic and global economic architecture. As a result of successful reforms, Ukraine is becoming an increasingly attractive place to do business.
In Ukraine, all public services are being digitized to make them transparent, user-friendly and efficient. A special legal framework for the IT industry “Diia City” is being created, which will allow entrepreneurs from all over the world to quickly implement the most ambitious innovative and business ideas.
A law was approved* that envisages the provision of state support for Ukrainian and foreign investment projects exceeding the equivalent of 20 million euros ($23.8 millions** or DKK149 millions). Investors with significant investment will receive a number of advantages, in particular, they will be exempted from paying certain taxes and fees, import duties on equipment and components. They will receive preferential land use rights and support from local authorities in the construction of the necessary infrastructure.
More and more investors recognize that Ukraine has become a stable and predictable emerging market, and the availability of talented human capital and high-quality undervalued assets makes Ukraine an excellent investment destination.
In 2020, the country climbed another seven steps in the World Bank’s Ease of Doing Business ranking and now ranks 64 out of 190 countries. At the same time, in terms of “ease of getting credit” Ukraine shares its position with the leaders of this rating – Singapore and Hong Kong, and in terms of “ease of dealing with construction permits” it is ahead of the United States. The World Bank rates Ukraine second among the countries of the world in the last 10 years regarding the speed and depth in the improvement of the business climate.
Between 2015-2019, Ukraine witnessed foreign direct investment inflow of $16 billion, resulting in the construction of over 100 manufacturing plants and creation of tens of thousands of new high-added-value jobs.
The interest of Danish industry is increasing in starting a business in Ukraine. Over the past 10 years, the number of Danish companies in Ukraine has grown from 120 to more than 300. Such global Danish brands entered the Ukrainian market as “Novo Nordisk”, “Moller-Maersk”, “DSV Panalpina”, “Carlsberg”, “Vestas Wind Systems”, “Chr. Hansen Holding”, “H. Lundbeck”, “Rockwool”, “Simcorp”, “Pandora” and many others.
Recently, several well-known Danish furniture manufacturers have decided to move their production facilities to the territory of Ukraine. In particular, the Danish company “Hjort Knudsen A/S” decided to build in Ukraine a large environmentally friendly woodworking enterprise worth 11 million euros.
Despite the pandemic, lockdown and economic downturn, investment in the IT industry in Ukraine in 2020 increased to $571 million. And 2021 should become even more active for Ukraine in terms of attracting investment. To this end, the Ukrainian government has created* the “National Investment Fund of Ukraine” which will contribute to the development of international economic cooperation and to further improving Ukraine’s competitiveness.
The Embassy of Ukraine in Denmark provides advice to interested Danish investors in entering the Ukrainian market. This work is carried out in cooperation with the Exporters and Investors Council, the Investment Promotion Office «UkraineInvest», the Office of the National Investment Council of Ukraine and other Ukrainian and Danish government agencies and organizations.
* Automatic Google-translation into English
** All amounts expressed in U.S. dollars unless otherwise noted