Investment opportunities checklist for Ukraine. A perspective of the third President Viktor Yushchenko
Why is now the best time to invest in the Ukrainian economy?
At the Mind Invest Summit 2024 in Lviv, entrepreneurs, potential and active investors, startup developers and representatives of government regulators were discussing whether these turbulent times are a right time to invest in various sectors of the domestic economy. Viktor Yushchenko, the third president of Ukraine, was not left out of the discussion: speaking from the summit stage, he outlined his vision of Ukraine's investment attractiveness and the principles that should underpin it. Mind presents the most striking quotes by the former president.
Today, Ukrainian defenders at the front are fulfilling the mission of many generations of Ukrainians. This is the greatness of our time. Ukraine's great liberation struggle for independence is supported by 54 countries, the largest coalition since the Second World War.
As a great optimist, I am confident that the attention to our country opens up unprecedented economic opportunities for the development of business at all levels in Ukraine.
Do foreign investors realise that despite the war, Ukraine remains a country with unlimited potential and a favourable investment environment? They are beginning to realise this, because those who are not afraid of risks now will have better results than those who come later.
The opportunities that Ukraine demonstrates today are the best offer you can hear in Europe. We have many markets that need enormous attention from the world.
I know of many infrastructure projects that are 40% ready for implementation but need support. They should be developed in synergy between Ukrainian and international investors.
The international community is ready to meet us halfway in any part of the financial mechanics for investment success. Wherever in the world you apply as a representative of Ukraine, no one will deny you now. The present day offers unique opportunities for both the international and Ukrainian investment community, and it is worth taking advantage of them.
What kind of investment does the Ukrainian agricultural sector need?
The world is beginning to understand how big Ukraine's mission is in the grain sector, which is being discussed in every market today, whether it is South Asia or Africa.
We were among the five largest grain producers in the world. The Ukrainian agricultural sector feeds more than 500 million people. Many countries can no longer exist without Ukrainian grain.
In 2022, Ukraine reached a grain harvest of 106 million tonnes. However, 70% of this harvest is stored in unsuitable conditions, in the open air. The Dnipro river system, which needs to be rehabilitated, has only two elevators. There are no elevators on the Dniester, and only a small elevator facility is being built on the Black Sea coast. Therefore, the need for new elevators to store grain is urgent.
Ukraine's grain market, which despite its potential currently lacks two-thirds of its infrastructure, requires large-scale investment from the international community, especially from European partners.
Having built the elevator infrastructure, we will be able to unlock the full potential of Ukraine's grain sector. A logical question arises: why, being a leader in grain production in Europe, does Ukraine not export its primary processing products? Why is bakery made from Ukrainian grain not produced in Ukraine, but in countries with a grain deficit?
We have 53,000 farmers. But when you ask our main grain producer how he sells 1,000 tonnes of grain, the answer will hang in the air, because our market lacks basic organisation and there is no grain exchange. In Canada, a farmer can instantly find out the terms of selling his thousand tonnes of grain through an exchange. This is an example of how the grain market should work.
We are facing a tremendously interesting development of this sector. We need to create an organised infrastructure for our grain market, a platform for hundreds of ambitious and profitable projects.
How to reconstruct the Ukrainian energy sector?
The Ukrainian energy sector is a huge field for new investments and dynamic business development. Building alternative energy facilities in the Chornobyl Zone is one of the ways to develop this sector.
I made considerable efforts to develop alternative renewable green energy, in particular wind and solar, in the Chornobyl Zone. This will allow us to revive 4% of Ukrainian land, which remained economically inactive for almost 40 years. We can talk about projects with multibillion-dollar investments and enormous economic success for Ukraine – the largest alternative energy cluster in Europe.
We used to have six oil refineries – today there is only one in operation. Ukraine needs to build two new refineries, because every litre of diesel fuel used in Ukraine is imported from Poland or Romania. What other nation needs such large and ambitious projects today?
Ukraine's plans to develop nuclear energy have already been announced, and this is also about unique opportunities that combine Ukraine's political and economic potential.
How to revitalise Ukraine's industrial capacities?
Today, Ukraine is in dire need of revitalising its chemical plants to regain its lost ground on the global market. Unfortunately, none of Ukraine's five chemical plants are in operation, although the need for polymer and chemical products remains critical. Every new construction project in Ukraine consists of at least 20% plastic.
In addition, despite the enormous damage to industrial facilities, Ukrainian enterprises demonstrate resilience and a desire to recover. For example, our Antonov plant, whose airfield was destroyed by enemy bombardment, is once again offering the world the most efficient and largest military transport aircraft. We manufacture the most powerful aircraft known in the world.
Kharkiv-based Energoatom produces everything for nuclear generation, except for the vessels. These are unique opportunities for the development of the Ukrainian energy sector.
How the intellectual potential of Ukrainians compensates for the lack of labour
Labour in the 21st century is the oil of the 20th century. It is something that cannot be ignored, something that should be taken care of. I am confident in this.
The strength of Ukrainians, however, is their high level of education. This is a valuable human resource that is key to the prosperity of any country in the 21st century.
We are proud to be the world's third army of programmers and are rapidly mastering the digital economy. This makes us a leader that most European countries follow.
We are especially proud of the younger generation, which has such unique knowledge that it is becoming irreplaceable. Therefore, it is this existing potential that needs to be developed in a harmonious and competent manner – to develop motivation for young people to stay in the country.
I believe that in this context, it would be extremely appropriate to open five or six world-class international universities in Ukraine that will issue high-quality international diplomas.
The same can be said about healthcare: we need to put on the agenda the creation of five to ten top-level polyclinics that can compete on a global scale. I personally know a lot of outstanding Ukrainians in this field, and they need support and resources to implement their big projects. Then they will be able to demonstrate their best achievements to the world.
This is the only way we can fight for the return home of every family, every Ukrainian, from the youngest to the oldest.
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