Poland in Ukraine behind Cyprus and Switzerland, and there is something to compete for
- Ukraine is a very promising place to invest for Polish business.
- In international business, it is very important to find the right partner from the country where the investment is located.
- The Ukrainian economy will be rebuilding after the war with Russia, moving quickly towards modernity.
- Corruption is no longer such a big problem in Ukraine. This is a result of the formation of civil society.
The cumulative value of Polish investments in Ukraine at the end of 2023 amounted to USD 780 million, which placed us in a distant ninth place among foreign investors in Ukraine . Countries such as Cyprus and Switzerland were ahead of us - according to the report "Poland, Ukraine - investments" prepared on behalf of the Polish-Ukrainian Chamber of Commerce, the conclusions of which were presented during the European Economic Congress .
Poland is also an active economic partner of Ukraine, despite the ongoing, full-scale Russian aggression there. Polish exports to Ukraine constitute as much as 30 percent of the value of our exports to EU countries . As the report shows, simply remaining in Ukraine, despite the war, is a kind of investment in that country and our future economic relations.
During the discussion, Andrii Ryzvaniuk, from the Ukrainian government department responsible for supporting foreign investments, pointed out why it is worth choosing Ukraine as a partner right now - during the war that is ongoing there.
- Ukraine is a link between the European West and the Asian East . The country is becoming a natural logistics center in these directions of world trade. We are also a large, well-educated nation. With a professional and not very well-paid (compared to the EU havens) workforce. We have natural resources. We are also a large, internal market, because we still have several dozen million inhabitants. You can also invest here profitably in the IT sector or agriculture, with government support - he listed.
- The legislation provides special treatment for investors who invest more than 12 million euros. We have 2,600 Polish companies operating in Ukraine. This is a large business community. New Polish companies that want to enter Ukraine will have many opportunities to exchange experiences. Our authorities are also ready to support you. We will help you look for potential partners, we will find the right location - he added.
Piotr Arak, chief economist of VeloBank, an institution that also deals with financing the economic life of Ukraine, stated: - Many companies invest in Ukraine, through Cyprus or Luxembourg. For Ukraine, Poland is the largest trading partner . We, as a private bank, are interested in supporting Polish capital in Ukrainian investments. Even during the war. After all, this is a chance to make money.
- Germany used to use our market in this way. Business activity in Ukraine is a chance for faster development of Poland and Ukraine. Investments with the greatest chance of success are innovations, but also transport and construction. However, a reform of the central bank is necessary there. This would be of great importance for stabilizing the currency. In addition, the development of distributed renewable energy is important there - said Piotr Arak.
Marek Buczak, Director of the Department of Management of the Foreign Expansion Fund at PFR TFI, assured that his institution is working on the concept of establishing a fund to support Polish business in Ukraine .
- At the moment we have PLN 600 million at our disposal . If it turns out in the future that there will be a lot of interest from Polish companies in Ukraine, we will be able to launch a new fund. Our first grant was related to the company Softwar. In a few months we will inform about another investment supported by us - a production plant near Lviv - said Buczak.
- Ukraine is a difficult market, not only because of the war. It is also the constantly changing legal regulations. However, we see interest in investing in the local market. This also applies to large companies. Larger investments (according to announcements - even over EUR 50 million) will take place when the war ends. Even under the conditions of a permanent ceasefire. I would not like to recommend any sectors. We are there where Polish entrepreneurs need us. We want to adapt the product offer within the group to real needs. We meet with representatives of institutions from Japan, Korea and the USA. They do not feel confident to promote investments in Ukraine at the moment. So Poland is a good intermediary here.
Bogdan Zawadewicz, director of the Geopolitical and Economic Risk Analysis Office at the National Economy Bank, pointed out that the reconstruction of Ukraine must be demythologized . According to him, there is no indication that Ukraine will win this war on its own terms. The bulk of Ukraine's estimated material losses of 500 billion euros relate to the occupied territories or directly near the front line.
- No investments will be made here - said Zawadewicz. - So we need to focus on modernization. In the matter of corruption, we need to see the great effort of the Ukrainian state to eliminate this phenomenon. However, it is naive to expect that a country in a state of war will be able to deal with this matter immediately.
- The inflow of foreign capital to Ukraine is a positive phenomenon. However, attention should be paid to internal investments by Ukrainian companies. The local authorities have a program supporting the development of small companies. However, Ukrainian banks are very cautious. They direct loans mainly to trade or simple production. Large investments will begin after the war - he added.
Kredobank also operates in Ukraine. Jarosław Bełdowski, the bank's first vice president, spoke about his experience from that market.
- We have clients even in Sumy, which is right on the front line. Ukrainian entrepreneurs do not take too risky decisions to build new factories. When we talk about Polish companies entering the Ukrainian market, the language and cultural proximity undoubtedly facilitate this process. However, you always have to check the partner thoroughly. Understanding the language is also important. For example, the statement "definitely". It sounds the same in both languages. Except that in Ukrainian it means "maybe" - emphasized Bełdowski.
- Ukrainians show great determination to maintain production. If a bomb falls somewhere, the plant is immediately rebuilt. However, I am very skeptical about the mechanical transfer of the experience of our central bank to the bank of Ukraine. This is not the best model for Ukrainian changes at the moment - noted the vice-president of Kredobank.
Jacek Piechota, president of the Polish-Ukrainian Chamber of Commerce, also spoke about effective methods of selecting Ukrainian business partners. He pointed out that the activities of Polish businesses in Ukraine are supported by the economic cooperation agreements in force between the countries. Piechota also said that he has his own observations regarding corruption in Ukraine.
- It currently has a completely different dimension. During the war, a new, civic Ukrainian society is emerging. Those who were at the front and will return to their towns will not allow themselves to be cheated so easily, easily and pleasantly by local chieftains. Ukraine has a new constitution, which has eliminated single-member constituencies. This was the source of power of Ukrainian oligarchs - stated the president.
- Today, Ukraine has a huge chance to overcome a certain civilization gap. There will be no reconstruction of the destroyed energy sector in the old model . The safest is distributed energy, and such is being created. Large energy-intensive industries will no longer be created there - he noted.
Piechota also recalled that one of the main tasks of the Chamber that he manages is to match business partners .
- We have the ability to verify Ukrainian partners. We are also here to defend our company against corruption. In business, the most important thing is for the project to be palatable for financing. It is difficult to define the industry here. Probably logistics, distributed energy, municipal economy, but also agri-food processing. Each mission we organize shows new possibilities. Fertilizer, petrochemical, arms sectors - listed Jacek Piechota.
A large Polish outsourcing company, Impel , operates in Ukraine. Sylwia Krasoń-Kopaniarz from the board of Impel Ukraine, managing director of international development in the Impel Group, and vice president of the International Association of Polish Entrepreneurs in Ukraine, spoke about her experience in this market. The Impel Group entered the Ukrainian market through the acquisition of another company.
- However, we retained local partners as minority shareholders. They helped us manage this business. Because the Ukrainian market is primarily about interpersonal relations - she noted.
- Let's remember that this is not the European Union. Different legal rules apply there. We also need to make a thorough analysis of the market potential. The challenges we will encounter include personnel problems. When it comes to trade, it is very important to learn the customs procedures in detail. In construction, we have a lot of competition from Turkish companies. Our Polish deficit is the lack of capital , because we have had a 40-year loss compared to free markets, which have been getting richer during this time. So cheap financing from government funds is very important - Krasoń-Kopaniarz analyzed the situation.
- We have been trying to make our Ukrainian dream come true for 15 years. When we entered the country, we assessed Ukraine very prospectively. Population, territory, resources. I would really like this potential of Ukraine to be revealed again. The Impel Group in Poland is over 50 thousand people. PLN 3 billion of annual revenue. Several dozen services, and in Ukraine we still only have basic services, from technical real estate maintenance - she reminded.
Cezary Łysenko, member of the management board, operational director of infrastructure and general construction at Budimex , spoke about the construction company’s experience on the Ukrainian market.
- The Ukrainian market is an element of diversification of our activities - said Lysenko. - 25 years ago, on the threshold of joining the EU, we had various external funds. However, we lacked competences and technology. Today, construction engineering in Poland is the first league in the world. Will Ukraine have the resources and technologies to carry out the entire reconstruction on its own? They themselves would not cope with this task. Not necessarily, in terms of people or equipment. However, it is necessary to be able to handle it logistically, organizationally, financially. Each job will have to be thoroughly documented. All the more so because civil society will need transparency.
- We will be happy to share these experiences. We have a lot of Ukrainian students in Poland. There are many Ukrainian interns at Budimex. They are learning to build in our style. This potential can be used in Ukraine. This is the most important investment that pays off quickly - outlined the possibilities of Budimex representative.
- I have one more small request: as a construction sector, we should think about Ukraine as an industry. It is not about a specific company. That is why the role of the construction employers' association is very important. So that companies can cooperate with each other. Here, too, I would like to ask state institutions to participate in financing our activities in Ukraine - Cezary Lysenko concluded.
Shouldn't the Industrial Development Agency , which manages, among other things, economic zones near the Ukrainian border, be such a kind of aircraft carrier for Polish companies wishing to operate in Ukraine? Łukasz Kotapski, vice-president of the ARP board, spoke about this: - The three zones we manage are located in key regions, near the border. These are the "Mielecka", "Tarnobrzeska" and "Starachowicka" zones.
See the report from the session "Poland, Ukraine - investments":
- Our task is to attract investors to the zones. However, in the context of long-term cooperation with Ukraine, we need to go a little further. Soon, such economic zones will probably develop in Ukraine. We should not look at it as competition. Today, the zones in Poland are a safe haven for business. Although investors from our zones are already looking at Ukraine - Łukasz Kotapski reported.
- We, as an agency, are ready to help with economic expansion into Ukraine. Ukrainians have a great group of programmers. The zones can be an organizational base for a new economic life in Ukraine. We have great potential for the development of the space sector . They also have great experience in this matter. Poland is currently negotiating its second contribution to the European Space Agency. It will be EUR 300 million for the years 2026-2029. This money will be spent in space sectors - said the vice-president of the ARP board.
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