Political and economic stability in Ukraine - important to attract investment, but no less important willingness of companies to provide investors with high quality prepared information about your business.

About the investment climate in Ukraine, the interest of foreign investors to invest in the Ukrainian business projects and the lack of readiness of Ukrainian companies to cooperate with European funds, said Vladislava Bilotskaya - director of the Ukrainian Center for Business in London, managing director of the Federation of Employers of Kiev in London.

- Is there interest among foreign investors to invest in Ukraine?

- According to international ratings, in particular, the American Association of Economists Group, Ukraine, unfortunately, is only 71 among the countries that are attractive to investors. Ahead of us, Russia, Kazakhstan, Georgia and the Baltic states. In my opinion, this is a very low level for the country, which is located in the heart of Europe and has a highly qualified specialists in various fields.

At present, foreign investors in Ukraine are only interested in IT technology, agriculture, logistics, transport systems, and energy. Other sectors of the Ukrainian economy today does not attract investors.

- Why investors are interested in these sectors of the Ukrainian economy?

- Ukraine has been and remains the breadbasket of Europe. We produce a large amount of agricultural products such as corn oil, sunflower oil, sugar, meat and eggs that Europe needs. In addition, experts predict the next crisis, not this time of financial and food. In this perspective, Ukraine looks very promising for investors.

Western funds have serious ambitions for Ukrainian agricultural land. Hedge funds, in particular the British, Swiss and German plan to invest in Ukraine after the lifting of the moratorium on the purchase of agricultural land.

In the field of IT technology, everything is easy. The level of training of our professionals - high, but the payment is very small in comparison with the countries of Western Europe and the U.S.. That is why many foreign companies hire Ukrainian experts on outsourcing.

Only in 2012 the Ukrainian Business Centre in London asked five Western IT companies that intend to acquire IT companies in Ukraine, or create a new one and hire local professionals.

With regard to transport and logistics, these areas are weak and thus potentially interesting for investors. In addition, this sector is more or less clear legal basis.

- What primary requirements faced by companies that intend to attract Western investment?

- In recent years, the requirements for potential projects from Ukraine increased significantly, as global ratings of the country declined and today Ukraine is considered a zone of high risk for infusion of Western capital.

For decision-making by investors looking for information about the potential profitability of the project, the speed and the growth prospects of the market, a reliable credit history of the company, professional management and positive history of debt obligations.

- How to correct accents to interest an investor?

- Communicating with the British funds, I have always wondered whether coming to them with business projects in Ukraine. Indeed, such projects are, however, 80% of them do not even consider. The reason is simple - the projects do not meet the format preferred by the investor to consider. They do not answer the elementary questions of investors - who will be their local partner.

Ukrainian companies do not understand that investors are investing in the first place, not in the project, and the company, which already has a history and experience. No answer to the following questions: what form of investment (debt or equity), how the funds raised will be returned, which team is behind the project and who, indeed, would manage it. Thus, even long-term projects are dying at an early stage, before reaching the managing partners' decisions.

The level of investment literacy of many Ukrainian promising companies while not enough to go directly to the investments. If your company has a promising business project that you plan to present to Western investors, I would recommend to contact a professional financial analysts who prepare competent investment proposal in accordance with international standards. Amateur in this case, unfortunately, does not bring the expected results.

- What should be the amount of investment to interest an investor?

- There are different groups of investors and hence their interest depends on various factors. For example, venture capital funds to invest in projects, the so-called business angels. It is usually high-tech and IT companies, where the required investment amount ranges from 500 thousand to 1 million.

The next group - hedge funds. They are interested in investment of 10-15 million euros, with investment duration of five to eight years.

A group of private investors - are wealthy individuals who are interested in projects in the CIS. Their investments can range from 1 to 20 million euros.

Investment banks interesting category of projects from 50 million euros. However, investment banks typically require collateral or government guarantees.

- In February, will host the first International investment roadshows Invest in Ukraine in 2013, organized by the Federation of Employers of Kiev and Ukrainian Business Centre in London. What projects will be presented at the event?

- This is the first investment fair, which will present business plans of Ukrainian companies, which need to attract investment in the amount of 5 to 30 million euros, the company representing the middle segment of the Ukrainian economy.

For each project individually selected group of investors. In addition, the participants of Ukraine present their project, they can also talk to individual investors.

In the UK, investment fairs are held, which are projects in Russia, Kazakhstan, Azerbaijan, but such a road show with the Ukrainian project no.

Ukrainian Investment Forums in Europe, tend to have an image in nature and, as a rule, do not focus on the involvement of specific investments. Rather, it is done indirectly. Of course, such actions raise the image of Ukraine in the world, but foreign investors are not interested in such a format.

Investors - this is quite a specific group of people. They are very capricious, employment and value their time, so during the road show wants to talk directly with the leadership of the company, which will implement the project, not a general analysis of the situation in the country.

Ukrainian Business Centre in London hopes that Invest in Ukraine in 2013 will give a further impetus for a fruitful cooperation with Europe and will actually raise funds for Ukrainian business.

- It is clear that London, as the world's economic capital, was selected for Invest in Ukraine in 2013 by chance. Why foreign investors ignore such events in Ukraine?
 
- Today, the market investor, not business. Difficult to interest investors to come to Ukraine because very few professionally designed projects from Ukrainian companies. Furthermore, the overall investment situation in the country - is not attractive, so investors ignore business forums and trade fairs, which are held in Ukraine.

- Now easier to attract a large or small amount of investment?

- The amount of investment is not important, the main thing - it is a professionally designed investment offer from a stable and promising company. Over the past year, Ukrainian Business Centre in London received a lot of private business projects, most of which looks like this: We want a loan for 5-8 years, at 8%, and the right means or not - the big question mark. The Guarantor, the desire to give up capital companies do not have. This generates a huge misunderstanding between the Ukrainian business community and the requirements of foreign investors. This is one of the reasons for the lack of investment in Ukraine, no less important than the political and economic instability. However, it can be eliminated at the business level.

- How will the investment climate in Ukraine in the near future?

- Now the financial situation is very short-lived, so far give predictions - a thankless job. However, there is confidence that investment in energy, agriculture, IT and transport will be. Relative to other sectors of the economy, a lot depends on public policy, legislative changes, reduction of corruption. I believe that the state should reduce its intervention in the business and provide a clear legal framework, clear and predictable for the investor who has little opportunity to quietly go to Ukraine and operate profitably.


For more information on Invest in Ukraine in 2013 on the link ...


Information:

Federation of Employers in Kiev - is a non-profit organization that brings together the territorial and sectoral employers' organizations, employers - legal entities and organizations whose statutory purpose is to represent and defend the rights and interests of employers.
Chairman of the Board - Ruslan Demchak, Executive Director - Bentsler Julia.

Ukrainian Business Centre in London (UBTSL) is designed to support business and investment relations between Ukraine and the United Kingdom. UBTSL is the center of Ukrainian companies and entrepreneurs who intend to protest British business opportunities and find new partners.