UKRAINE:

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UKRAINE LARGEST MARKET IN EASTERN EUROPE
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COUNTRY PROFILE DID YOU KNOW?

• Population 46,2 million of which 68 - urban
  population
• Territory 603,7 thousand sq.km the largest in
  Europe
• GDP per capita EUR 2,400 (as of 1H2008)
• the geographical center of Europe is situated in
  Ukraine
• 1 granite reserve in the world with the 45 of
  the world reserve
• 6th in the world in production capacity of metals
  and mining
• 56 of land is arable and 1/3 of the worlds
  black soil is found here
• And still.
• 28 of population living under the
  nationally-defined poverty line
• Unemployment 3 (end of 2008) 9 (forecasted in
  2009)
• Average life expectancy 65Y male, 76Y female

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FOREIGN DIRECT INVESTMENT IN UKRAINE (by sectors,
by years, by source countries as of July, 2008)
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WHY INVEST IN UKRAINE?

• Strategic market access at the crossroads of
  East-West and North-South trade routes WTO
  accession
• Sizable domestic market (46 mln consumers the
  largest market in EE)
• Low labour costs and highly qualified human
  capital
• Rich in natural resources

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PRIORITY SECTORS FOR INVESTMENTS
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SECTOR Alternative Energy

• Biomass and wind are primary renewable sources of
  energy
• Sector capacity (annual fuel demand) 110-140 mln
  tons of the conditional fuel (currently 42)
• Biomass potential 22 mln tons
• Territory 42 mln hectares of arable land for
  rape production
• Investments needed for sector in 2003-2010
  2,57 bln.
• Special Governmental support program exists (Law
  on bio-fuel development adopted in June 2007)
• COMPETITIVE ADVANTAGES
• availability of land
• low-cost labor

7
SECTOR ICT / High Tech

• Total market size - about 2,2 billion
• Growth rate in 2006 - 28 (Russia 18, Poland
  15, Kazakhstan 33)
• 4,000 companies and appx. 47,000 workers involved
• Competitive advantages include
• Qualified and relatively low cost skilled labor
• Highly-ranked technical schools
• Medium-high innovation level Technological
  Activity Index 0.600 (ranked 39 among 117
  countries)
• Ukraine rated 5th in terms of the number of
  certified IT specialists by Brainbench

8
SECTOR Agriculture and Food-Processing

• Total market size - about 1 billion
• Annual growth rate of 20
• COMPETITIVE ADVANTAGES
• More arable land than France and Germany combined
• Excellent soils in large fields and very large
  farms available
• Good profits in simple arable cropping at low
  rents
• good geographic position for large export
  markets Russia, Kazahstan, and EU member states
• skilled and inexpensive labor
• INVESTMENT OPPORTUNITIES
• Processing of fruits and vegetables
• Drying and freezing of fruits and vegetables

9
SECTOR Infrastructure and Logistics Development

• Investment in infrastructure
• Roads, hotels, airports, bridges etc.

• Logistics development incentives
• 4 out of 10 European transport corridors run
  through Ukrainian territory
• Great amount of construction material deposits in
  Ukraine
• EUR 20 billion are allocated by the EC and EIB
  for net Trans-European transport corridor
  development
• Greater openness of Ukrainian economy as a result
  of WTO accession
• Growth of retail trade in Ukraine

10
SECTOR Tourism

• Potential recreational territories - 12,8 of the
  country's area
• Unique health-improving resources more than 500
  mineral water and clay deposits and 47 of
  beaches situated along the sea shore territory of
  the Black Sea and Azov Sea
• Diversity of landscape sea, mountains, steppe
• Ecotourism, cultural and historical tourism,
  village tourism, gastronomic tourism are niche
  opportunities!!!

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USEFUL LINKS

• Ukrainian Center for Foreign Investment
  Promotion
• http//www.investukraine.org/
• Doing Business in Ukraine (Government Portal)
• http//kmu.gov.ua/control/en/publish/category?cat_
  id929504
• Investment Proposals of Ukrainian Companies
  (Ukrainian Chamber of Commerce and Industry)
• http//www.ucci.org.ua/dnload/invest.pdf
• Doing Business in Ukraine (PWC, 2007)
• http//www.pwc.com/Extweb/pwcpublications.nsf/doci
  d/975CF16F2D406D9180257045004291BA

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THANK YOU!
Yuliya Shcherbinina Public-Private Partnership Officer
United Nations in Ukraine1 Klovsky Uzviz, Kyiv, 01021Tel [phone]Fax [phone]yuliya.shcherbinina_at_un.org.ua