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Editorial

Contributed by Avellum

Doing Business in Ukraine: Economic Recovery and Prominent Future

Last couple of years presented a tough challenge for Ukraine and exposed a number of political, as well as economic problems within the country. The scope of these problems led to a popular belief that the new Ukrainian government stands very little chance in taking meaningful steps to attract foreign investment in the near future.

However, since 2015, the Government proved to be capable of enhancing Ukraine's investment appeal and creating favourable business environment in the country. A number of significant reforms were introduced boosting foreign investments and support of Ukrainian business in the aftermath of economic and political turmoil.

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Legal market overview

Ukraine deserves its recognition as ‘the breadbasket of Europe’ because of the strength of its agricultural sector. Heavy industry has been affected by the ongoing conflict in the eastern territories and the annexation of Crimea, but the technology sector is displaying healthy growth.

The economy is showing signs of recovery with GDP up 2.3% in 2016 and further growth forecast. Legislative reform is central to its future as the country moves to align itself further with the European Union. Efforts to tackle corruption are taking effect with, for example, the appointment of new Supreme Court judges. The Antimonopoly Committee now publishes its decisions, so competition law is a fast-growing practice area. White-collar crime practices have also seen an uptick in work as the judicial system undergoes reform.

International law firms including Baker McKenzie, Kyiv Office, DLA Piper Ukraine LLC, CMS and Dentons have benefitted from the steady return of foreign investors, as have regional players such as Kinstellar and Integrites. Leading domestic firms including Arzinger, Asters, Avellum, Sayenko Kharenko and Vasil Kisil & Partners remain dominant in many areas, though they face a growing challenge from boutique firms.

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