The Ukrainian League of Industrialists and Entrepreneurs (ULIE) is Ukraine's largest business association, representing over 13,000 members that produce 80% of Ukraine's GDP. ULIE operates 28 regional offices in Ukraine and has a Representative Office in the EU in Brussels since 2015. ULIE's key priorities in the EU are to build trade and investment platforms between Ukrainian and European businesses, represent Ukrainian private sector interests to EU institutions, and promote Ukraine as a business partner and investment destination. Ukraine has free trade agreements with the EU and several other countries, and its economy is growing since implementing reforms following a recession in 2014 related to conflicts in eastern Ukraine.

1. Ukrainian League of Industrialists and
Entrepreneurs - ULIE
€
November 14, 2016
Ukraine: open for business

2. About ULIE
Established in 1992
The biggest business association in
Ukraine - our members produce 80%
of the country’s GDP
Members: sectorial associations,
regional business organizations, major
national enterprises and SMEs
(13,000)
In Ukraine: 28 regional offices, 73
subsidiaries, 22 representative offices
and 34 sectorial commissions
Globally: offices in 22 countries,
including Representative Office in the
EU (in Brussels since 2015)
2

3. ULIE key priorities in the EU
3
Trade and investment: build viable B2B platform for the Ukrainian and
the European entrepreneurs
Policy and lobbying: represent the Ukrainian private sector with the
EU institutions and at the member-state level
PR: promote Ukraine as a reliable business partner and attractive
investment destination

4. 4
Ukraine: geography
The largest country within Europe
Gateway to key markets of the
region: Europe, CIS, Asia, Middle
East
Multiple logistic solutions: max 2
truck days to EU border, developed
railways system, major seaports
Full energy mix: fossil fuels,
nuclear, renewables
40m+ consumer market

5. 5
Ukraine: FTA agreements
EU (28 member-states, in force)
EFTA (CHE, ISL, NOR, LIE, in force)
CIS (in force, except Russia)
Montenegro (in force)
Canada (ratification)
Turkey (negotiations)
Israel (negotiations)
PAN-EURO-MED (42
countries, analisys)
Source: Ministry of Economic Development and Trade of Ukraine, 2016 data

6. 6
EU-Ukraine DCFTA
97% of duties abolished
Reduction of an average tariff on the Ukrainian exports from 7,6% to
0,5%
Trade liberalization for goods and services
Opening of public procurement market
Legislative approximation and economic integration with the EU
EU GSP to be applied for the Ukrainian goods until 2018
EUR.1 Certificate to be provided for free by the State Fiscal Service
of Ukraine - 38 000 certificates issued in Jan-Sep 2016
Source: Ministry of Economic Development and Trade of Ukraine, November 2016 data

7. 7
Ukraine on the New Silk Road

8. 8
Ukraine: GDP dynamics
GDPgrowth%
-16
-12
-8
-4
0
4
8
2007 2008 2009 2010 2011 2012 2013 2014 2015 2016E
2
-9.9-6.8
00.2
5.2
4.1
-14.8
2.1
7.9
Source: Ministry of Economic Development and Trade of Ukraine, 2016 data

9. 9
Ukraine: GDP dynamics
Events behind Ukraine’s GDP fluctuations:
2009: Ukraine hit by the global financial crisis 2008
2012-2013: flat GDP growth as economy stifled by ineffective
governance system and continuous slide of global commodity prices
2014 - ‘Ideal Storm’: the Revolution of Dignity, annexation of Crimea,
war on Donbas, wiped-out sate budget, further decline of commodity
prices
2015: global trade demonstrated the sharpest contraction since
2009, which again affected commodity prices critical for the
Ukrainian economy: iron ore -45,6%, black metal roll -15,4% and
fertilisers -9,6%
©Sources: Netherlands Bureau for Economic Policy Analysis, CPB World Trade Monitor

10. 10
Ukraine: GDP dynamics
Events behind Ukraine’s GDP fluctuations:
Before 2014 Donbas accounted for 15% of GDP, 25% of export and
18% of industrial output
©Sources: Ministry of Economic Development and Trade of Ukraine, DW, Segodnya newspaper

11. 11
Ukraine: macroeconomics
Public finance deficit down from 10,1% in 2014 to 2,1% in 2015
$18bn of sovereign debt restructured
FDI growth from $-0,5bn in 2014 to $3,1bn in 2015
IMF 4-year EFF worth $17,5bn: $5bn forwarded in March 2015,
$1,7bn - August 2015, third tranche approved in Q3 2016
EU macro-financial assistance: €2,2bn approved in 2014 and
€1,6bn approved in 2015, €600m dispatched
EU grant to private sector development in Ukraine: around €260m
which is expected to generate €2-3bn of loans (credit lines opened
with EBRD and EIB)
IFIs, EFIs and EDFIs in Ukraine: IMF, WB/IFC, EIB, EBRD, KfW/DEG,
FMO, IFU. Also investment insurance mechanisms: MIGA, OPIC
Source: Ministry of Economic Development and Trade of Ukraine

12. 12
Ukraine: trade geography
Ukraine’s top 10 trade partners in 2015, USD billion:
©Sources: Ministry of Economy and Trade of Ukraine

13. 13
Ukraine: export geography
©Sources: Ministry of Economy and Trade of Ukraine, June 2016
Ukraine’s top 6 export destinations, as of Q2 2016, %:

14. 14
Ukraine: export structure
©Sources: Ministry of Economy and Trade of Ukraine, June 2016
Metallurgy
Agro/food
Machinery/Equipment
Ukraine’s top 3 export categories, as of Q2 2016, %:

15. 15
Ukraine: export to the EU
©Sources: Ministry of Agrarian Policy and Food of Ukraine, October 2016
Increase in export quotas to the EU preliminary approved by the
Commission until 2020, thousand tonnes:

16. 16
©Sources: Ministry of Agrarian Policy and Food of Ukraine, October 2016
Main importers of agricultural and food products from Ukraine in the EU:
33,9%
EU share in
Ukraine’s
agro/food exports
3,1%
UK 14,6%
Netherlands
2,1%
Belgium
8,8%
France
16,6%
Spain
9,8%
Portugal
12,6%
Poland
9,4%
Germany
2,2%
Hungary
13,5%
Italy
2,4%
Romania
2,2%
Greece
Ukraine: export to the EU

17. 17
Ukraine: import geography
©Sources: Ministry of Economy and Trade of Ukraine, June 2016
Top 6 importers to Ukraine, as of Q2 2016, %:

18. 18
Ukraine: import structure
©Sources: Ministry of Economy and Trade of Ukraine, June 2016
Metallurgy
Chemical products
Mineral products
Ukraine’s top 3 import categories, as of Q2 2016, %:

19. 19
Ukraine: cost efficiency
©Sources: ULIE, 2016
Average hourly wages in manufacturing, USD:

20. 20
Ukraine: cost efficiency
©Sources: Ministry of Economy and Trade of Ukraine, June 2016
Natural gas and electricity cost:
Country Natural gas, EUR/1000 m3
Poland 366
Slovakia 369
Belarus 165
Romania 317
Hungary 381
Ukraine 268
Country Electricity, EUR/kWh
Poland 0,08
Slovakia 0,11
Belarus 0,09
Romania 0,08
Hungary 0,08
Ukraine 0,05
Natural gas
Electricity

21. 2012 2013 2014 2015
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Ukraine’s ranking rise in Ease of Doing Business:
Ukraine: open for business

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Ukraine: open for business

26. Nicholas Tymoshchuk
Director
Avenue de Cortenbergh 168, 3rd F/L
B-1000 Brussels, Belgium
T: +32 2 736 72 13
F: +32 2 735 16 01
brussels@uspp.org.ua
uspp.ua/en
ULIE Representative Office in the EU