Ekonomichna Pravda forum brings together Ukraine's export business leaders: key takeaways

On 25 September Ekonomichna Pravda held a forum entitled "Ukrainian Export: Is a Window Opening?", bringing together representatives of export businesses from most sectors of the economy, as well as international organisations and NGOs, to talk about the current state of foreign trade and the problems faced. The forum was attended by Taras Kachka, Ukraine's Deputy Minister of Economy and Trade Representative; Serhii Nikolaichuk, Deputy Head of the National Bank of Ukraine; Francis Malige, Managing Director, Financial Institutions for the EBRD; senior managers at major Ukrainian exporters Interpipe, Nibulon and Kernel; and representatives of SME and industry associations. In total, over 260 people, including the representatives of 17 foreign embassies, were present at the forum.

Mykola Maksymchuk, acting editor-in-chief of Ekonomichna Pravda, opened the event

National Bank Deputy Head Serhii Nikolaichuk revealed during a conversation with Mykola Maksymchuk, acting editor-in-chief of Ekonomichna Pravda, that opening the maritime corridor, as well as improving Ukrainian exporters' efficiency in recovering foreign currency, has helped increase the inflow of currency to Ukraine.

"If we compare the first eight months of this year with the same period last year, the export revenues Ukraine received are up 15%, to US£32 billion," he noted.

Serhii Nikolaichuk, Deputy Head of the National Bank of Ukraine, and Mykola Maksymchuk, acting editor-in-chief of Ekonomichna Pravda

Asked about the industries that have good prospects for the future and will help boost foreign trade volumes, Deputy Economy Minister Taras Kachka said Ukrainian manufacturers should rely on a competitive pricing strategy, focusing on ensuring that Ukrainian products are cheaper than those offered by other countries. "We can see that opportunities for access to foreign markets are much better for industrial products than for agricultural products, yet it's the agrarian sector that's actively developing in Ukraine," Kachka noted.

A conversation between Deputy Economy Minister Taras Kachka and National Bank Deputy Head Serhii Nikolaichuk

The first panel discussion, "Heavyweights of Ukrainian Export", featured representatives of the largest exporters in the agricultural and metals industries. Denys Morozov, First Deputy Head of Interpipe, revealed that a major problem for the metals industry currently is the increase in production costs due to the rising cost of electricity, given that production in this sector is fairly energy-intensive.

Hiring and retaining staff in frontline regions is also challenging. Volodymyr Slavinskyi, Trade Director at Nibulon, agreed that production costs are increasing, but the main challenge for the agricultural sector is a reduced harvest for export due to a drought in 2024, which, combined with stable prices on the global market, will decrease Ukraine's potential earnings from agricultural exports. However, logistics in this sector are now cheaper than they have ever been during the period of the full-scale war.

Participants in the "Heavyweights of Ukrainian Export" panel discussion

Oleksandr Kalenkov, President of Ukrmetalurgprom, an association of Ukrainian steel and mining companies, highlighted the role of the city of Pokrovsk in Donetsk Oblast, which has the only mine in Ukrainian-controlled territory that produces coking coal for Ukraine's metals industry. "For the past two years, we've been smelting 6-6.5 million tonnes of steel [annually], and this year we could reach 7.5 million tonnes.

If we lose Pokrovsk, it will be 2-3 million tonnes," Kalenkov said. A potential tax increase now being discussed in the Verkhovna Rada (the Ukrainian Parliament) was also mentioned. Hennadii Chyzhykov, President of the Chamber of Commerce and Industry, expressed concern that those who had always paid taxes would pay even more, while those who have not would be unlikely to start.

Hennadii Chyzhykov, President of the Chamber of Commerce and Industry, and Sevgil Musaieva, editor-in-chief of Ukrainska Pravda

Western exporters have frequently raised the question of funding for export projects, so Hlib Vyshlinskyi, Executive Director of the Centre for Economic Strategy, sought answers to this in his conversation with Francis Malige, Managing Director, Financial Institutions for the European Bank for Reconstruction and Development (EBRD), and Oleh Savin, Head of the SOE Corporate Business Department at Ukreximbank.

The conversation between Hlib Vyshlinskyi, Executive Director of the Centre for Economic Strategy, Francis Malige, Managing Director, Financial Institutions at the EBRD, and Oleh Savin, Head of the SOE Corporate Business Department at Ukreximbank

"Expansion or takeover?" That was the question addressed by some companies that provide logistics to help find customers abroad for Ukrainian products. Popular Ukrainian courier service Nova Poshta continues to develop and has plans to open offices in Austria and the Netherlands, said Pavlo Daniman, Marketing Director of Nova Poshta.

He noted that of all the countries where the company has opened offices, Germany was the most bureaucratic.

Participants in the "Expansion or Takeover?" panel discussion

Mykola Miroshnychenko, Director of Logistics at Kernel Holding S.A., Ukraine's largest producer of sunflower oil, revealed that in addition to its own railway cars and lorries, the company has also started using ships. "Our fleet of tankers and dry cargo ships handles 10% of our transportation volume. Now we have a clear understanding of the problems a fleet owner faces and how this business works.

It's a challenge, but it's also a logical investment for us. Whether we will expand or not is a matter of time. There are no problems with infrastructure at the moment, but it's been a hard year for farmers due to the poor harvest, and we hope the logistics will have something to work with.

In 2024 the market belongs to the farmer, the owner of the goods," Miroshnychenko explained.

Participants of the forum "Ukrainian Export: Is a window opening?"

The final panel discussion brought together various representatives of small and medium-sized enterprises: Anna Believantseva, COO of bionic limb manufacturer Esper Bionics, Artem Viunnyk, co-founder of Athlon Avia, which produces the Furia unmanned aerial system, Oleksandr Karasiov, co-founder of M-TAC, which manufactures tactical military clothing, and Elvira Hasanova, founder of the luxury clothing brand GASANOVA. Also on the panel was Denys Garasiuta, board member at Ukraine's Export Credit Agency, who outlined the opportunities for SMEs to insure their investments through the ECA and the other products offered by the institution.

Participants in the "SMEs for Export" panel discussion

The panel members discussed different strategies for entering foreign markets, their plans for expansion, and the problems they face.

Participants of the forum "Ukrainian Export: Is a window opening?"

Anna Believantseva described how her company had promoted itself in the US market, highlighting the importance of entrepreneurs promoting their products in person. The company is preparing to enter the German market, and may then branch out to Brazil, Indonesia and India, so it is developing product modifications and preparing to scale up production.

Tactical clothing manufacturer M-TAC is also expanding production. Early in 2024, its Kyiv factory was hit by a Russian missile that destroyed warehouses full of raw materials. The company halted production and exports and handed over its production capabilities in another location over to other brands, including Riot Division.

By doing this, M-TAC was able to retain 70% of its staff. After several months of working without profit, the company managed to start production up again and has even purchased a land plot to build a factory on.

Oleksandr Karasiov, co-founder of military clothing brand M-TAC, and Artem Viunnyk, co-founder of Athlon Avia, which manufactures the Furia unmanned aerial system

Elvira Hasanova told the story of how Gigi Hadid, the highest-paid model in the world, found out about her brand. Hasanova messaged Hadid's stylist every morning for a year, sending photos of looks, but the messages went unread - until they were finally read after a fashion show.

Hasanova's persistence paid off. When Hadid wore her brand's clothes, it was covered by every specialist media outlet. Personal promotion, a presence in multi-brand stores, starting a franchise - all this is helping the Ukrainian luxury clothing brand find customers abroad.

Participants of the forum "Ukrainian Export: Is a window opening?"

Artem Viunnyk, co-founder of drone manufacturer Athlon Avia, also stressed the importance of showing up in person at various platforms abroad.

Since 2022, his company's products cannot be sold abroad, but the company still attends trade fairs in search of potential buyers. Viunnyk believes that potential exporters should start by obtaining permission to export samples, as at the moment Ukrainian companies do not know whether there is any demand for their products on foreign markets. This initial stage will help Ukraine minimise risk, assess the level of interest in its products abroad, and then decide on next steps accordingly.

Participants of the forum "Ukrainian Export: Is a window opening?"

The general partners of the forum were Ukreximbank and Interpipe.

The event was also supported by Kernel, Ukrainian oil company Ukrnafta, the Chamber of Commerce and Industry of Ukraine, the Ingo insurance company, high-end alcohol brand Nepoborna, water company Morshynska, and the Parkovy Exhibition and Convention Centre.

Translation: Polina Kyryllova

Editing: Teresa Pearce