УкраинаВ фокусе:Focus On:

Ukraine`2014

ITE – Regional overview Focus On: Ukraine 2014

The main event of 2014 is the political and economic association of Ukraine with the European Union. Following the creation of a free trade zone, the trade and economic part-nership is expected to grow in more than 30 sectors of the economy, includ-ing agriculture, manufacturing and energy supply.

EUROINTEGRATION

The gradual re–orientation of the geographic priorities of the external trade of Ukraine took place from 2011–2013. Today, the main trad-

ing partners of Ukraine are European countries. The trade turnover between Ukraine and the EU sur-passed the volume of trade with Russia for the first time in 2014, reaching 35% of the total volume of external trade.President of Ukraine Petr Poroshenko signed the economy and trade part of the European Union As-sociation Agreement on the 27th of June 2014. The extension of the trade and economic partnership is expected in more than 30 sectors of the economy, including agriculture, industry, energy supply and the protection of the rights of consumers. According to the results for 2013, the GDP of Ukraine comprised $182.09 billion. Current events have led to a slowdown in the development of the economy in the country, with a forecast of a fall in GDP of around 6% in 2014. However, the Ministry of Econo-my of Ukraine is sure of the quick restoration of the

economy after peace returns to all regions of the country and forecasts 1.5% growth in 2015. Global businesses have been investing into Ukraine for a long time. According to data from the State Statistics Committee of Ukraine the total volume of foreign investment into the economy of the country comprised $58.38 billion, including $44.423 billion from the countries of the European Union. The main sources of investment are Cyprus, Germany, Nether-lands, Russian Federation, Austria, United Kingdom, British Virgin Islands, France, Switzerland and Italy.Today, Ukraine actively imports European mechani-cal machinery, transport, pharmaceuticals, electrical machinery, plastics and polymers, paper and card-board, food and drink products, agricultural machin-ery and other products.The structure of export to the European Union is comprised of ferrous metallurgy, ores, crops, elec-trical machinery, oil seeds and fruits, mineral fuels, wood and wooden products.

The association of Ukraine with the European Union has taken place on 27 June 2014. The EU is the main vector of Ukrainian external trade

KyivLvivKharkiv

Donetsk

Zaporozhye

Russia

Belarus

Poland

Slovakia

Hungary

RomaniaMoldova

RussiaBlack Sea

Azov Sea

Lugansk

Odessa

Dnepropetrovsk

Ukraine is the second largest state in Europe (after Russia), exceeding France, Spain and Germany in area. The country is located at the crossroads of transport corridors from the north of Europe to Turkey in the south and from east to west,

from Russia and Asia to Central Europe

INDUSTRY

MACHINE BUILDING

The industrial east of the country is the most economically developed – Donbass (Donetsk, Luhansk), the Dnieper region (Dnipropetrovsk,

Zaporizzhia) and the major cities of Kharkiv, Odessa and Lviv. The key trends are maximum energy effi-ciency and the introduction of European standards.

A large part of the industrial export of Ukraine are ferrous metallurgy, pipe rolling, coke chemistry, chemical and mining industry,

electrical machinery, railway locomotives and sur-face transport, aircraft and other important sectors. AN series planes and Antonov aviation engines, sea and river craft, high powered equipment, cars, trucks buses are well known products of Ukraine.

Military exports are another important part of the income of the state budget. Ukraine is especially proud of its military and aerospace technologies, in-cluding Oplot tanks, MiG and Su fighter planes from Ukrspetsexport, Sapsan Missile complexes and the Motor Sich aviation engines.

Electrical energy is an important industry in the economy of Ukraine. The country contains 4 atomic power stations, a series of hydroelectric

power stations on the Dnieper and Dniester rivers and many thermal power stations. Energy is export-ed from Ukraine to Belarus, Hungary, Slovakia, Rus-sia, Romania and Moldova.

The current trend in the industry is changing from natural gas to other types of fuel, including coal and biofuel (biogas, pellets, wood chips, agricultural and food waste). Equipment for biological fuel power stations has been freed from import duties, includ-ing boilers, cooling towers and steam generators.

The most relevant fields for investors are energy saving and raising the energy efficiency of production in every sector and the modernisation of the food production and processing industry in accordance to European standards for food product safety (HACCP).

Steel production contributesup to $20bn a year to the economy

ENERGY

System Capital Management remains as the largest financial and industrial corporation of Ukraine with a vertically integrated business in

the mining, electrical energy and financial sectors. The top 20 largest non–state companies in Ukraine in 2014 according to Forbes.ua include: Metinvest, Industrial Union of Donbas, Arcelormittal Kryviy Rih, Donetsksteel, Zaporizhstal and Interpipe metallur-gical holding companies; DTEK, WOG, Ukrtatnafta, Gaztek, Galnaftogaz and TNK–BP Commerce energy companies; Ostchem Ukraine checmical corpora-tion; Kernel and Ukrlandfarming agricultural holding companies; Fozzi Group ATB–Market, EpiCentre K re-tail companies, Megapolis–Ukraine distributors and the Kyivstar mobile phone operator. The top 10 most valuable Ukrainian brands are Na-

sha Ryaba (poultry meat), Chernigivske and Obolon beers, Roshen and Konti confectioneries, Hlebniy Dar, Morosha and Khortytsa vodkas and Schedro and Torchyn conserved vegetables and sauces.All of the leading western brands of equipment and products are available on the market of Ukraine. These include Knauf, Bosch, Siemens и Junkers, Brit-ish Petroleum and Shell in the fuel and energy com-plex, as well as production facilities of leading global FMCG companies such as Procter&Gamble, Unilever, Nestle, Kraft Foods, SUN Inbev, Coca–Cola, McDon-alds and many others.

Kyiv is a rapidly growingEuropean business centre

MAJOR MARKET PLAYERS

CONSTRUCTION AND EUROCODES

11.2 million sqm. of residential space has been made available in Ukraine in 2013 (growth of 10%)

including 8.2 million sqm that has been built over that period (growth of 20%).The development of the residential and commercial property market is also a result of the deregulation of the industry. Ukraine has taken great strides to-wards the simplification of planning permissions

in construction, with the number of procedures to go through reduced from 32 to 3–5 and the time to complete them from 10 to 2 months. Ukraine has risen by 145 places from 186 to 41 in the Ease of Doing Business Index compiled by the World Bank in 2013. The main trend in the industry is the change to the Eurocode European standards of construction.

AGRICULTURE

Trade in agricultural products makes a signifi-cant contribution to the formation of a posi-tive trade balance for Ukraine. Around half of

the export volume are grains, sunflower oil and corn (grain– 34%, sunflower oil – around 20%, oilseeds – 11%). Confectioneries, soya, soy bean meal, cheeses, barley and sugar are in the top ten of exported prod-ucts.The positive external trade balance of agriculture is growing. Ukraine exported agricultural products to the value of $17.3 billion in 2013 (27% of all exports), while imports comprised $8.6 billion. The export destinations are Asia – 34%, European Union – 27% and CIS – 21%.In 2013–2014, Ukraine exported 32.3 million tonnes of cereals and has become one of the top three glo-bal cereal exporters after the USA and European Union, overtaking recognised production centres such as Canada, Argentina and Brazil. The largest cereal production corporations are Nibulon (10%), ADM, Louis Dreyfus Commodities, Glencore, Bunge Ukraine, Kernel and Cargill. The main cultivars ex-ported are corn, grain, barley, rapeseed and soya.Ukraine has a 56% share of world trade in sun-flower oil. 4.65 million tonnes was produced in the 2013–2014 season. The largest producers are Kernel, Bunge Ukraine, Oliyar, Delta Wilmar and Agrocosm.The animal and poultry farming sector is the most attractive to investors. Ukraine is 9th in the world among poultry meat producers and 8th for the pro-duction of eggs. The largest players on the market are Mironivsky Hliboproduct (over 51% of the mar-ket), Agromars, Dniprovsky, Ovostar and Avangard. The main export destinations are the European Un-ion, the countries of the Middle East, Central Asia and North Africa. The largest producers of pork are APK–Invest, Globinsky Pig Complex and Danosha.

Ukraine ranked 3rd in the world for grain exports

The industries with the most investment potential are animal and poultry farming

A new sector with a lot of potential is construction and supply of equipment for biogas facilities at large agricultural and processing complexes

PRIORITY TO THE DEVELOPMENT OF TOURISM

Ukraine is one of the top 20 leading countries in the world in terms of the number of tour-ists, according to the UNWTO (World Tourism

Organisation)/ Ukraine was visited by 24.7 million people in 2013 ( 7.2% growth).Natural and climatic diversity of Ukraine allows you to choose different types of recreation. There are vineyards and the ruins of ancient castles, historical parks, churches of most religions. Healthcare tour-ism, ecotourism and spas are being actively devel-oped. The impressive Carpathian mountains in the west attract skiers in winter and cyclists, hunters, fishermen and mountain climbers in the summer. The black sea coast is a favourite beach destination for holidaymakers. Lviv, Odessa and Kyiv are the most attractive cities in Ukraine for tourists. Lviv is an ideal destination for culinary and historical tourism, with its architecture from the middle ages and countless cafés and res-taurants. Odessa focuses on historical and culinary tourism and cruises.The largest number of tourists visit Kyiv, as the capi-tal features the historical centre of Kiyvan Rus – the St Sofia Cathedral, as well as the blossoming chestnut trees which grow everywhere from Khreshchatyk street to the many parks by the Dnieper.Those that enjoy marine and river holidays can book a cruise on a river cruise liner on the Dnieper from Kiyv to the Black sea or charter a yacht in Odessa or Mykolaiv for a sea voyage.

Roofs of the Vozdvizhenka gingerbread village, a new business district in the

historical centre of Kyiv

Kamenets Podolsky is one of seven wonders

of Ukraine

Ukraine is one of the top 20 leading countries in the world in terms of the number of tourists, according to the UNWTO (World Tourism Organisation)/ Ukraine was visited by 24.7 million people in 2013 ( 7.2% growth).

The Black Sea, a modern port and a distinctive sense of humour are Odessa’s signs

Lviv. Dominican Cathedral

Territory 603 628 sqm.

Nominal GDP reached USD 182 094 million for 2013.

The population of Ukraine at the end of 2013 was 45 264 million.

GDP per capita – 4003 USD

Currency Ukrainian Hryvnia (UAH), 1 EUR = 16,1–17,1 UAH

International dialling code +380

Emergency services 112

Time zone GMT+2

LARGEST CITIES – Kyiv (Capital), Donetsk, Dnipro-petrovsk. Kharkiv, Odessa, Lviv, Zaporizzhia

POLITICS Ukraine is a parliamentary presidential republic Pres-ident – Petr Poroshenko, Prime Minister – Arseniy Yatseniuk

LANGUAGES Official Language – Ukrainian, the second language of communication in the majority of regions of Ukraine is Russian.

RELIGIONUkraine is a secular state. The majority of religious followers are part of the Ukrainian Orthodox Church and there are many Catholics, Protestants of various denominations, Muslims, Jews, Buddhists and repre-sentatives of other religions.

INTERNATIONAL EXPO CENTRES The largest exhibition centres of Ukraine are the In-ternational Exhibition Centre, KyivExpoPlaza, ACCO International (Kyiv), ant the Exhibition Complex of Odessa Sea Port (Odessa). The level of these exhibi-tion complexes is in accordance with international standards. There are 19 exhibition venues in Ukraine in total.

Working hours – offices are usually open from 9 to 18.00, shops from 10.00 to 20.00

Climate – climate in Ukraine varies depending on the region. The climate in Kyiv is moderate continen-tal, with an average January temperature of –3.5о

С and +20.5о С in July. The weather is closer to the Mediterranean in the south of the country, with tem-peratures lower by 5–6о С.

Ukraine welcomes itsguests with open arms

Kyiv. Evening at Sofiyska Square

KEY FACTS

IMPORTANT DATESConstitution Day 28 JuneIndependence Day 24 AugustChristmas Day – 7 January International Women’s Day – 8 March1 May – International Workers’ DayVictory Day – 9 MayOrthodox Easter and Whitsun – public holidays

ELECTRICAL POWER – AC 220–240V, European two pin plug

SMOKING is prohibited in all public places, including cafés and restaurants, public transport stops, railway sta-tions and airports

BUSINESS LUNCH – lunch costs around 4–8 EUR in the majority of Kyiv cafés and restaurants Business–lunch time – from 12.00 to 16.00 Dinner in a restaurant – 15–40 EUR

TRANSPORT – all types of public transport are well developed, including underground, trolleybuses, trams, buses and route taxis. The price of one journey is 0,09—0,21 EUR/ Taxi tariffs – from 2 EUR, a journey from Boryspil International Airport to the International Exhibition Centre costs around 10 EUR

WHERE TO STAYRADISSON BLUE PODIL/ Hotels belonging to the largest global chains are open in Kyiv, including Hyatt, Interconti-nental, Radisson, Fairmont, Hilton, Holiday Inn, Ibis, Premier Palace, Opera and many others. There are many modern 3* and 4* hotels near the International Exhibition Centre. The capital has around 400 hotels and hostels.

The Tourism Partner of Premier Expo is Dinadis.

VISASCitizens of 63 countries have the right of visa–free entry to Ukraine. For an unlimited duration – Azerbaijan, Armenia, Belarus, Georgia, Moldova, Russian Federation, Uzbekistan For up to 90 days: Andorra, Austria, Argentina, Belgium, Bosnia and Herzegovina (30 days), Bulgaria, Brazil, Brunei (30 days), Vatican, Great Britain, Hungary, Germany, Greece, Hong Kong (14 days), Denmark, Israel, Ireland, Iceland, Spain, Italy, Kazakhstan, Canada, Cyprus, Kyrgyzstan, Korea, Latvia, Liechtenstein, Lithuania, Luxembourg, Macedonia, Malta, Monaco, Mongolia, Netherlands, Norway, Panama, Paraguay, Poland, Portugal, Romania, San Marino, Serbia (30 days), Slovakia, Slovenia, USA, Tajikistan, Turkey (up to 60 days), Finland, France, Croatia, Montenegro, Czech Re-public, Switzerland, Sweden, Estonia, Japan.Citizens of other countries must have an official invitation or a tourist voucher to receive an invitation.

The Carpathian mountains are consideredto be the green jewel of Ukraine

Bright authentic ornaments of Vyshyvanka Parade. Kyiv

INFORMATION FOR VISITORS TO UKRAINE

Kyiv attracts tourists with the steep banksof the Dnieper and golden domes among green parks

Premier Expo organises its exhibitions at the most modern venue in Ukraine - the International Exhibi-tion Centre. The International Exhibition Centre is a unique, modern complex with a total area of 66 500 sqm., which includes 3 exhibition pavilions of 28 000

sqm., 16 conference halls with complete services for exhibitors and visitors. 2 pavilions of 12 000 sqm. each and a 2400 seat con-gress centre are planned for the future.

INTERNATIONAL EXHIBITION CENTRE

The number of exhibitors reached 3910 companies from

75 countries

The gross exhibition area comprised 136.2 thousand sqm. 255 thousand people visited the

exhibitions

The Premier Expo database contains contacts for more than

80 thousand companies and 1 500 000 specialist visitors from

all sectors of the economy

PREMIER EXPO

IEC is the most modernexhibition hall in Ukraine

Issue made by: Sergey Shevchuk, Kira Ivanova, Alexandra Kostenko (Premier Expo). Translated by Petr Burov (ITE London).

Photos by: Alexandra Gorokhova, Alexandr Gritsay, Stas Ilkiv, Vladislav Listyev, Alexey Ugalnikov, http://2012.sport.ua, http://fortuna-travel.by, http:// www.turtess.com, http://www.tpg.ua, http://lu-den.narod.ru, http://www.at-ua.com, http://www.1zoom.ru, http://www.turystam.in.ua,http://hdw.eweb4.com, http://files.o2-photo.com, http://analytics.in.ua, tsn.ua, http://proua.info/, http://buymore.pro, Oleg Totsky, Roman Naumov

www.pe.com.ua

Premier Expo has been organising international ex-hibitions and conferences in Ukraine since the year 2000. The company portfolio includes more than 30 pro-fessional exhibitions and conferences for all sectors of the economy. More details are available on the of-ficial company website at www.pe.com.ua.The exhibitions organised by Premier Expo stand out with their international high standard of organisa-tion, which makes them some of the leading events for their industries in the Ukrainian economy. All of the exhibitions have many years of support from state bodies and industry associations. The company organised 39 exhibitions and confer-ences in the 2013-2014 season.