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What are Ukrainian exporters missing? survey results

Assistance in establishing relations with sales representatives, finding partners in target markets, analysis of possible markets, information support, training and organization of B2B meetings – this support is currently lacking in Ukrainian exporters.

These results of the survey of entrepreneurs were presented on June 17 at a meeting of the Committee for Export and Investment Support of the Kyiv Chamber of Commerce and Industry.

“An important stage of revision and formation of Ukraine’s Export Strategy for the next 5 years is underway. We know that we have many restraining factors for the development of exports, at the same time – a huge untapped full export potential of domestic enterprises. We will provide our proposals and recommendations on the necessary components of the Export Strategy from the KTPP Export Support Committee, but in order to make these proposals as effective as possible, we decided to find out directly from entrepreneurs – what is wrong, what needs to be changed, what tools they need to development of export activity, “– the CEO of ZAMMLER GROUP Victor Shevchenko who is the chairman of Committee of support of export and investments of KTPP told.

The survey involved 124 companies that export their products to the EU, Asia, Africa and the United States. These are representatives of the construction industry, agriculture, food, light and chemical industries, mechanical engineering and others.

Among the key problems they face when exporting, entrepreneurs noted:

  • bureaucratized process of obtaining permits;
  • complexity of customs clearance procedures and obtaining licenses, permits;
  • the difficulty of complying with all the requirements required for imports in importing countries;
  • lack of sufficient knowledge of a foreign language to work with exports;
  • lack of information about institutions and organizations that promote exports;
  • high duty rates in importing countries.

Also among the voiced problems are the presence of a corruption component at customs, unfavorable currency regulation, non-refund of VAT, etc.

In addition, during the meeting, the participants raised the issue of economic “blockade” of some Ukrainian goods by the Republic of Belarus in connection with the recent decision of the Belarusian side on individual licensing of imports of a number of Ukrainian goods.

Dmytro Senik, Deputy Minister of Foreign Affairs of Ukraine, commented on this situation:

“Any Ukrainian company that will suffer from restrictions from the Republic of Belarus can immediately apply to the Council of Exporters and Investors at the Ministry of Foreign Affairs. And we, together with our colleagues from the Ministry of Economy, will look for ways and make every effort to find such a company an alternative market.”

Dmytro Senik also noted that currently the Ministry of Foreign Affairs and the Council of Exporters and Investors under the Ministry of Foreign Affairs (REI) seeks to become a “window” for Ukrainian exporters when entering international markets. Currently, REI holds weekly webinars for exporters with ambassadors to various countries, actively works to intensify cooperation with African countries, and plans to train diplomats in the economic field.

Mykola Zasulskyi, President of the Kyiv Chamber of Commerce and Industry, noted that the effective implementation of the Export Strategy requires proper coordination.

“Unfortunately, we do not yet have a single “window” where our entrepreneurs could turn. And this is very important today. I will give the example of Israel. There is a state Institute of Exports, which coordinates all processes related to export activities. And in case of problems, it is this Institute that responds to the situation, takes the initiative to remove all obstacles for Israeli exporters.”

“The Ministry of Economy has not yet published data on the implementation of the penultimate year of Ukraine’s export strategy. However, based on the State Statistics Service, we can calculate that the main indicator of the effectiveness of the strategy – the export of high or medium technology instead of the annual growth of 10% from the base 2016, when it was 17.3%, decreased to 14.9% in 2020 year,” – said during his speech, the director of Oakeshott British Insurance Agency Yuri Grishan.

During the meeting, a separate block considered the financial instruments available to Ukrainian exporters. In particular, representatives of the Export Credit Agency, JSC Ukrgasbank, JSC Ukreximbank, the State Innovative Financial and Credit Institution and others spoke about the opportunities and features of export lending.

One of the main components of export operations is the insurance of risks associated with this process. Only since the beginning of this year, the State-created Export Credit Agency has shown positive dynamics of development, purchases of real services have begun, the first agreements related to export support have been made.

Olena Dyachenko, a member of the Board of the Export Credit Agency, assured that it is very important to have assistance at all stages of production and product promotion, not only on marketing, finding buyers, but also on financial issues that can be easily solved by banks or the state. One of the mechanisms of state support is the Export Credit Agency, which aims to stimulate large-scale expansion of goods of Ukrainian origin.

Based on the results of the survey of entrepreneurs and discussion during the meeting of the Committee, a corresponding appeal will be sent to the Ministry of Economy of Ukraine.

The full version of the survey can be found at https://cutt.ly/pnX6dqN

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