Alberta companies looking to invest in new international markets are being invited to consider the emerging economy of the Ukraine in anticipation of a possible trade mission this spring.
Despite persistent reports of deeply rooted corruption and mismanagement in the post-Soviet republic, opportunities still exist for small and medium-sized businesses to form beneficial partnerships in several sectors, including food processing, construction, energy and agri-business, says Natalia Burianyk of Slavic Gateway Consulting.
The Calgary-based consulting firm hosted a day-long seminar last week at the 400 Club for business delegates from Edmonton and Calgary to hear both success stories and the pitfalls of doing business in the Eastern European country.
“At this point in time, Ukraine is the economic leader of the former Soviet republics,” Burianyk says. “I think this is a very good opportunity for Alberta companies to explore this market.
“It’s important to show Canadians what kind of projects exist in Ukraine, so they can start thinking how they can actually enter the market, how they can benefit from the boom that exists there.”
In 1991, Canada became the first western country to recognize the renewed independence of Ukraine, and since then has dedicated more than $250 million in development assistance. But on a visit three years ago, Prime Minister Jean Chretien publicly chastised the country for its excessive bureaucracy and encouraged it to develop an environment where entrepreneurship is not plagued by bribes or the production of shoddy goods.
The Calgary seminar heard that as Ukraine turns a corner on economic reforms, models of business success in the infant democracy are emerging despite continuing difficulties – which include a lack of financial transparency and control, low productivity and bureaucrat-bloated organizations.
“The reality of the Ukraine is not what we see in the media, the negative press we see every day,” says Lenna Koszarny, a consultant with Kiev-based Emergex Business Solutions (EBS), which works with foreign investors in Ukraine to facilitate better business practices.
Koszarny said since Western brands have yet to take a monopolistic hold of the economy, there are many opportunities to build made-in-Ukraine brands and products – as long as western entrepreneurs realize that building trust and partnerships are crucial to success.
“It doesn’t mean you’re drinking vodka every week with the general director,” she notes. “It’s not enough to fly in once a year and think you have a relationship because you’ve put $5 million into a project.”
Trade between Canada and Ukraine amounted to only $148 million in 2002. “I think we’re behind even Israel as far as trade with Ukraine is concerned,” says Burianyk.
“It’s quite a shame, because I think if Ukraine had a choice to deal with Canada or other countries, it would prefer Canada.”
