Ukraine: A hidden gem for international investors?

On 28 September Kinstellar, Emerging Europe and Central Asia’s leading independent law firm, hosted an exclusive roundtable event in London to present the key findings of a report on the investment environment in Ukraine, prepared and published together with The Lawyer.

Partner Kostiantyn Likarchuk of Kinstellar Kyiv office and the firm’s London-based consultant Nick Eastwell hosted and moderated the roundtable, which was attended by invited guests. The discussion explored several topics, including the opportunities and challenges of investing in Ukraine and the sectors that will see the most investment activity; Ukraine’s evolving relationship with Russia and Europe; and how planned judicial reforms will impact Ukraine’s attractiveness to investors. It was a lively and engaging conversation that helped to raise the profile of the investment opportunities across Ukraine.

The report, available on Kinstellar website, was based on data from a survey of over 100 respondents, including private equity funds, financial institutions, corporates, senior lawyers and other interested parties investing in Ukraine and shares views and insights on how the Ukrainian market is perceived by those doing business there.

The report found that while there are legitimate concerns about risks such as corruption, ineffective bureaucracy and Ukraine’s relationship with Russia, these risks are generally overstated by outside observers and can be mediated with careful planning and specialist advice. Respondents to the survey confirm that the opportunities across Ukraine are vast: bolstered by a highly educated workforce and lower operating costs, investors are discovering advantages to investments in several key sectors, including manufacturing, IT and agriculture. The main takeaway from the report and the round-table presentation is that Ukraine is emerging as a “hidden gem” for international investors targeting high returns in a strategically important location next to major European markets.