How do you foresee business sector development in Lviv region so far in 2011 and what are predictions for 2012?
Lviv and the neighboring regions in Western Ukraine have been within the eyeshot of German investors for nearly 10 years. With the immense support of the Delegation of German Industry and Commerce in Ukraine (Kyiv), more than 25.000 jobs were created here over the past ten years.
On behalf of KLINGSPOR I would like to express gratitude to the Head of Lviv Region State Administration, Mr. Mykhaylo Tsymbaluk and his team for the tremendous and highly-professional support and to emphasize the business climate in Lviv region being investor-friendly.
To prove the above said, I would like to note that multinational companies stick to the tendency of installing regional set-ups in Lviv to comply with international and European business administration guidelines, as report the recruiting agencies operating in Lviv. We are proud to assume KLINGSPOR’s ambitious vision to strengthen our position of international leader in abrasives (exporting its products to more than 36 countries of the world) by facilitating our production volumes as the new works is to open at Velyki Mosty consolidating our local market presence.
How do you envisage the mid-term development of Western Ukraine’s investment environment?
The environment depends strongly on the legislative framework and market conditions. Due to the continued support of the EBA, our cooperation with local customs authorities enhanced and new business-beneficial tariff rates were established. However, the issue of VAT-refund still remains a matter of extreme concern. The taxation system being fixed, Western Ukraine will be pushed towards new level of business development and new investments’ attraction. The on-going infrastructure developments, i.e. Kiev-Chop highway and new airport in Lviv construction, investments in hotel industry will contribute to this desired objective.
In your opinion, what place does Western Ukraine occupy on the overall projection of Ukraine’s economy?
Firstly, Western Ukraine (and Lviv in particular) is seen as a cultural mecca not only due to its history but also considerably owing to the well-educated people living here, willing to work hard and promote their land. Second, the spirit of economic revival is overspread here due to the development of infrastructure in the region preceding the UEFA-EURO 2012.
Which industries demonstrate the most evident potential for investors at today’s Western Ukraine market?
In my view vehicle and parts manufacturers are in investors’ outlook, as lots of enterprises started working within this particular industry recently. I’m concerned the flow of investments from EU-countries will go to Ukraine, allowing the FMCG sector to progress and national economy to spring up. Undoubtedly, the agrarian industry will play a dominant role, partially due to the growing demand for bio gas- and petrol.
What 5 steps would you advocate to the Ukrainian authorities in order to improve the business climate in Western Ukraine?
1. Elaborating VAT-refund schemes;
2. Allowing the foreign businesses to buy land for pro¬duction facilities;
3. Minimizing bureaucratic obstacles;
4. Reduce of tax audits frequency;
5. Licensing procedures simplification.
Do you consider the efforts Ukraine and Lviv undertake in process of EURO 2012 being timely and lead¬ing to successful championship hosting?
I am sure that everything will be ready in time and Ukraine will do justice on the Euro 2012.
Lviv blossoming with flowers and boasting infrastructure steady development becomes more and more attractive for tourists. I often hear people saying: “Why do you apply for Schengen visa, when you can go to Lviv?” And I fully agree with them!
What are the principal benefits of EBA Membership for your company?
We appreciate high level of expertise of EBA committees’ activities. Our company’s team members are informed on all legislative updates on a regular basis and have immense opportunities for business networking. However I would call for extension of EBA discount net in Lviv.
What episode of your business story makes you proud?
In April 2008, we started our operations in Ukraine at the height of global economy crisis, nevertheless we managed to run the business and cover the start-up expenses successfully.
How to reach for the stars in business?
You should be open for new experiences, flexible to meet challenges and attentive to your company finance and accounting. And you should always remember that choosing the right people for your team is the key to success.