Ukraine Export Market Research- Business Partner Search
|Population||45.48 million (01.08.2013)|
|Currency||Ukrainian hryvnia (UAH)|
|Official language||Ukrainian. Russian and 17 other languages are recognised as regional languages. Russian is widely spoken as a native language. English is the main foreign language.|
|Real GDP per capita||23.9 thousand UAH / EUR (2012), Estimate: 3746 USD – 2013,4843 USD – 2016|
|Growth of GDP, %||5.2% – 2011; 0.2% -2012;|
|Average gross salary||3840 UAH (June 2013)|
|VAT rate||20% (17% from 1 January 2014)|
|Company Income Tax||25% (16% from 1 April 2014)|
|Top domain||.ua / .укр|
Ukraine is one of the largest nations in the CEE region. The country enjoys a perfect geographical location in the centre of Europe. It borders with the Russian Federation, Belarus, Poland, Slovakia, Romania, Moldova and Hungary.
During the Soviet Era, the Ukraine was a strategic supplier of the former Soviet Union in a number of sectors including Agriculture, Heavy Industry and others. In the first 10 years after the dissolution of the Soviet Union, Ukraine went through painful transformations on its way to a market economy and faced a deep economic recession accompanied by hyperinflation and a dramatic decrease in economic output. In 1999 the output fell by approximately 40% against that of 1990. The year 2000 was the first year of a positive growth for the economy, which continued during the 8 subsequent years.
The country was granted Market Economy Status by the European Union as of 1 December 2005 and by the United States of America as of 1 February 2006. FATF withdrew its enhanced monitoring regime from February 2006. In the same year, the country received economic aid of 409.6 million USD from the International Monetary Fund.
In 2008, the growth of Ukraine’s GDP slowed down to 2.1% and during 2009 the country experienced the most dramatic impact of the economic recession, reflected in a 15% drop in GDP. At the start of 2010, the Ukrainian economy recovered showing a 4.3% growth in its real GDP and in 2011 it accelerated to 5.2%, due mainly to increased exports. The manufacturing sector displayed the highest growth rate dynamics, with companies posting a growth rate of almost 35%, followed by Transportation and B2C sectors, with a 25% increase in companies’ revenues, and the Energy & Resources sector with a 20% growth in revenues. In October 2013, the Ukrainian economy entered a state of economic recession again.
According to Reuters, in September 2013, Moody has put Ukraine’s credit rating to Caa1 (poor quality and very high credit risk). At the same time swap markets rated Ukraine’s default probability over the next five years at 50 percent.
Ukraine’s main export markets are the EU (26.6%), Russia (23.7%), Turkey (6%) and China (4.1%), based on data of 2012. The major part of the Ukrainian exports goes to the post-Soviet countries mainly, Russia, Belarus and Kazakhstan. Main export commodities are ferrous & non-ferrous metals, chemicals, fuel & petroleum products, transport equipment, machinery and foods.
Although Ukraine is a challenging business environment with around 40% of shadow economy, it offers a good opportunity to foreign companies to market their products, in many cases, in a large and less competitive market than those of more established EU countries.
There are business opportunities in areas such as Agriculture, Construction, Real Estate, ICT, Digital Publishing, Industrial Manufacture, Food, Textiles, Transport and many others. The country has a well-educated multilingual labour force, and labour costs are low compared to EU countries.
We have conducted various market research and business partner search projects in Ukraine in various sectors. Please visit Our Experience section to see the specific industries of our expertise.