In this article we will overview the most attractive economy sectors, the latest infrastructure projects, government procurements and opportunity of opening a company in Ukraine.

Open a company in Ukrainian agribusiness.

Ukrainian agriculture market has big prospects for the sales of agricultural machinery and equipment. Ukraine is a major global producer however, its agricultural sector is under-equipped and much of its existing agricultural equipment is outdated. Around 30% of the agricultural machinery in Ukraine should be replaced. According to the investigation around 10% of Ukrainian companies must replace up to 80% of their machinery. We suggest to open a company in Ukraine for:

  • Harvesters.
  • Tractors.
  • Tillage equipment.
  • Sprayers and fertilizer.
  • Seeding equipment.
  • Irrigation Infrastructure.
  • Grain storage and handling.
  • Agricultural chemicals, including growth enhancers and micronutrients.

Open a company in Ukrainian defense.

Ukrainian marker of defense is growing and has big demand of defense equipment. Ukraine has local companies in the defense industry which a boosting the defense market in Ukraine, but the factors such as corruption and non-transparent governance on the sector’s reduces the overall performance. Big demand for defense equipment in Ukraine, procurement processes, growing international defense industry collaboration trade ties and improvements in the sector’s structure is the excellent foundation start a company in Ukraine.

In 2019 MOD (Ministry of Defense) financing reached $3.42 billion. About $566 million goes for modernization and procurement of military equipment and weapons. Ministry of Internal Affairs financing reached $2.7 billion. In the 2019 allocations for defense and security reached 5.38% of GDP.

Ukrainian market needs to reduce its dependence on Russian military and defense equipment. If you open a company in Ukraine you will have an opportunity to diversify the Ukrainian equipment supplies by purchasing equipment from abroad. Sub-sector best prospects include:

  • Optics;
  • Engines for military vehicles;
  • Radio-electronic and radio communication components.

Start a company in Ukrainian education.

Education – With nearly 5.7 million students in a country the size of Texas,

Ukraine is one of the largest and most talented international student markets in the EU. Ukraine has 5.7 million students inside of the country and 66,648 students studying abroad in 34 countries. The number of Ukrainian students abroad increased by 176% between 2009 and 2016.

The best prospects to open a company in Ukraine:

  • Secondary Education
  • Community Colleges
  • Higher Education

Start a company in Ukrainian market of Food Processing and Packaging Equipment.

At this stage, Ukrainian market of Food Processing and Packaging Equipment is on the way of standards harmonization with the EU. This will positively and deeply affect the Ukrainian trade in processed food.

Trade competition is increasing, local factories and plants increase the competitiveness of their products by processing upgrading and modernization. These processes gives the foreign suppliers and buyers multiply opportunities to open a company in Ukraine in:

  • Vegetable oil and animal fats production.
  • Vegetable products/processing (including oils).
  • Dairy products/processing.
  • Confectionary products/processing.
  • Meat processing.
  • Packaging for food.

Launch a company in Ukraine in Medical Equipment market.

Medical Equipment shows significant growth from $524.7 million and $549.6 million in the period of 2019-2020. Such growth is caused by multiple factors:

  • new healthcare legislation, which changes the way healthcare is financed;
  • the ongoing World Bank project approved in March 2015;
  • the comprehensive hospital sector;
  • Ministry of Health plans to expand the network of clinics in rural areas.

In 2019, 90% of all medical devises sold in Ukraine was imported. The biggest suppliers of medical equipment to Ukraine are China, The U.S., Germany and Japan. The most potential market niches to open a company in Ukraine:

  • Laser surgery devices.
  • Prosthetics and orthopedics.
  • Stents, pacemakers, and other equipment used in the treatment of heart conditions.
  • Diagnostic imaging equipment (ultrasound, computer tomography, magnetic-resonance tomography).
  • Dental equipment and materials.

Start a company in oil and gas equipment.

Ukraine has started to improve oil and natural gas production and to diversify fuel supply channels aiming to increase the independence in energy resources. The industry of oil and gas in Ukraine plays a significant role in the Ukrainian energy security.  Sub-sector best prospects to open a company in Ukraine include:

Oil & Machinery:

  • Casing pipes for wells, oil well tubing, drilling tubing
  • Mobile workover rigs with 125 ton and 180 ton lifting capacity
  • Downhole drilling motors and services
  • Drilling muds and related services

E&P services:

  • Oil & gas upstream services
  • Wide introduction of sidetracking technology
  • Seismic exploration works
  • Wells workover operations
  • Coiled tubing services
  • Hydraulic fracture works.

Make a company in Ukraine for Safety & Security.

Ukrainian market of safety and security is now changing and developing deeply. The reasons are a bump in crime rates, conflict in eastern Ukraine, economic recession. Over the last few years, market capability and purchasing power decreased, and Asian low-cost suppliers flooded the market. Now the market is price sensitive and with high competition, but it still has enough space for the advanced technology solutions which cannot be proposed by the low-cost suppliers. The sub-sectors with the best prospects to launch a company in Ukraine:

  • Biometric readers.
  • Document readers.
  • Fire suppression equipment.
  • Explosives and drugs detectors.
  • Advanced video surveillance cameras with video analytic capabilities.

Infrastructure as a reason to open a company in Ukraine.

Ukrainian location gives significant development opportunities for investors. From the ancient times, Ukraine was located at the crossroads of world trade routes between Asia and Europe. Ukrainian transit potential is 200 million metric tons per year. Utilization percentage is only 25-30%. In the last years the Ukrainian government has prepared the package of reforms for the Ukrainian infrastructure. First of all it’s about the integration to the EU.

Ukraine has an important role for the EU as one of the main countries for the transportation of products from and to the European Union, especially since the EU Parliament approved the TEN-T program – development projects of the transportation infrastructure turning the national transportation systems of the EU countries into a unified trans-European network. Ukrainian infrastructure reformation is a part of framework of integrating Ukrainian and European transport networks. This framework includes 39 Ukrainian infrastructure projects envisaged by the national strategy Drive Ukraine 2030, at a cost of almost $5.3 billion.

Ukrainian infrastructure requires an additional $20-25 billion of investment by 2030. The Ukrainian Government at this stage is ready to finance about $1.5 billion of infrastructure projects every year.

The primary segments of Ukraine’s infrastructure industry to open a company in Ukraine:

Transport infrastructure: airports, ports, harbors and waterways infrastructure, railway, roads, postal and shipping services.

Construction: residential and non-residential building.