Dear reader,
Here we bring you an excerpt from a recent edition of our premium newsletter.
This excerpt is part of a Ukraine Rebuild Newswire series of chats and advice from foreign businessmen with extensive experience in Ukraine to the relative newcomers and companies that are just now considering joining the history reconstruction effort.
The German-Ukrainian Chamber of Industry and Commerce, (AHK Ukraine), routinely hosts low-key but highly informative chats for its members. Ukraine Rebuild Newswire usually finds news value in them, as well as human interest.
In the latest chat, BASF Ukraine CEO Tiberiu Dima, a Romanian who has been working in Ukraine since 2013, offers frank, open-eyed advice to businesses considering joining the reconstruction of Ukraine. It's the type of material meant for Reporter's Notepad.
To do business in Ukraine, he said, you need three things:
"A very good lawyer or law firm. A very good, experienced chief accountant or financial manager or financial director. And, absolutely, join a business association."
1 - Lawyer - "The legal landscape in Ukraine is very complex, and it has created absolutely amazing legal professionals. And this is necessary - you will face legal needs. The fiscal code is complicated."
2 - Accountant - "And you need a very good chief accountant to keep your papers in order. Otherwise, your company might be closed. You might get your accounts blocked, or get a lot of fines."
3 - Business Association - "This is where you will find the right forum to exchange, to network, to ask for support and to have your voice heard at the level of the administration. (ed - Dima is also president of the Ukraine-based European Business Association.)
'Local flavor'
"The fiscal code is very, very complex in Ukraine, and the labor law is very complex and outdated," Dima said. "I learned that we need to keep some documents for 75 years, just to give you some some small details and flavor.
"Also, Ukrainian entrepreneurs have a very specific way of negotiating. It's fascinating, but when you when you face it for the first time, it looks a bit like they're coming from a very extreme position, just to make sure there is a lot of room to negotiate.
"Despite all these cultural differences, once you establish your partners, and once you have agreed on a deal, you'll have a loyal partner. But it's always going to be bumpy. It's never going to be easy. There's always going to be discussions and costs and emotions. So get prepared if you want to do business in Ukraine to have emotional discussions with your customers and partners."
Still, he said, things have improved rapidly and continue to improve.
"Those who have been doing business in Ukraine for a longer time may remember the show - you get the economic police coming into your office, immediately arresting the managing director and chief accountant, and they're asking questions. Sometimes for no reason, or only because you upset some competitor. But those times are gone."
