Photo by Anastasiia Chepinska on Unsplash

While the situation is still uncertain about how the pandemic will evolve, a new survey shows that Ukraine’s businesses are financially recovering.

The companies in Ukraine are recovering. That is the conclusion from a new survey done by the American Chamber of Commerce in Ukraine with Citi Ukraine. The survey asked 100 CEOs and managers about the current state of their company, and 62 percent said they are set to meet their planned financial results, and 28 percent are set to achieve more. 

In contrast, only ten percent of the company’s are having financial problems, the survey found. Moreover, at the end of 2021, 65 percent said they expect an increase in revenue compared to last year. In other words, the companies are recovering after Covid-19. 

42 percent says that they are expecting to hire more people due to the improved results, and 35 percent are experiencing an increase in investments – while only ten percent are experiencing a decline. 

“The majority of respondents have said they will achieve planned financial results. Moreover, they expect that their revenues will increase going forward. I personally see a great deal of opportunity for economic growth in Ukraine,” said Country Officer and Corporate Banking Head of Citi Ukraine, Alexander McWhorter, about the results. 

Still work to do

The survey also asked the CEOs about what could improve the business climate in Ukraine. Among other things, the companies mentioned the need for effective judicial reform.

“93 percent of businesses stated that implementation of real and effective judicial reform, the rule of law, fair justice, and eradication of corruption is #1 strategic step Ukraine’s Government should take first to achieve economic growth, improve the business climate, and attract Foreign Direct Investment,” the conclusion of the survey wrote. 

Besides that, 52 percent mentioned the need for a transparent tax policy and the need to create fair competition; 26 percent mentioned the need for a good relationship with the IMF; 23 percent mentioned the need for an excellent regulatory environment, and 21 percent cited the need to secure investment and property rights in Ukraine. 

The companies mentioned the courts (56 percent), law enforcement agencies (32 percent), oligarchs (28 percent), and tax authorities (28 percent) as the institutions creating the biggest problems for doing business in Ukraine.

Worried about the future

Looking forward, the companies were also asked to identify the main obstacles. A new lockdown was identified by 61 percent as a risk, while 53 percent pointed to geopolitical uncertainty, with 39 percent pointing to the risk of escalation of conflict with Russia.

Among other concerns, 29 percent of the companies also mentioned the inability to achieve planned financial results, 22 percent pointed to the lack of security of employees and 16 percent mentioned the problem with the inability to invest.

“It’s great to see an upbeat forecast from the vast majority of AmCham members on their companies’ financial health in 2021. But the business is unanimous – 93% of companies prioritize judicial reform and rule of law as the #1 strategic step for Ukraine’s Government to take for economic growth, business climate improvement and attracting top-caliber FDI,” said Andy Hunder, President of the American Chamber of Commerce in Ukraine.

“We will continue to vigorously push for rule of law, and protection of investors’ rights, making Ukraine a better and more secure place to do business,” Hunder said.