Top 5 Ukraine Business News You Need to Know in 2021
The COVID-19 pandemic has taken a toll on the global economy, but Ukraine is slowly recovering from its impact. Despite the challenges, Ukraine’s business landscape is opening up, and there are plenty of exciting developments to look forward to in 2021. This article will highlight the top five Ukraine business news that you need to know in 2021.
1. Ukraine signs agreements with EU and UK
Ukraine has signed an agreement with the European Union that will see the liberalization of trade and investment between both regions. This move will open up new opportunities for Ukrainian businesses to export their products and services to Europe, boosting economic growth. Ukrainian exporters will also benefit from preferential access to the EU market.
In addition, Ukraine has signed a historic deal with the United Kingdom that will ensure the continuation of trade between both countries after Brexit. This agreement is an important step towards strengthening UK-Ukraine relations and providing certainty to businesses that rely on trade between the two nations.
2. Ukraine’s IT industry continues to flourish
Ukraine’s IT industry has been growing steadily in recent years, and this trend is set to continue in 2021. The sector is expected to generate over $5 billion in export revenues this year, up from $4.5 billion in 2020. Ukraine is home to over 200,000 IT professionals, making it one of the leading software development hubs in Eastern Europe.
Several Ukrainian IT companies have received investments from international firms, including SoftServe and N-iX, which raised $155 million and $10 million respectively. This highlights the confidence that foreign investors have in Ukraine’s IT industry and its potential for growth.
3. Ukraine’s renewable energy sector gains momentum
Ukraine’s renewable energy sector is gaining momentum, with more companies investing in solar, wind, and hydro power projects. The country aims to increase its share of renewable energy to 25% by 2035, up from the current level of 4.5%.
In 2020, Ukraine commissioned 450 MW of new solar capacity, making it the fastest-growing solar market in Europe. This trend is set to continue in 2021, with several companies announcing new solar projects in the country. For instance, Norwegian solar developer Scatec Solar has secured a 54 MW solar project in Cherkasy Oblast, which is expected to be commissioned in the second half of 2022.
4. Ukraine introduces new investment incentives
The Ukrainian government has introduced new investment incentives to attract more foreign direct investment to the country. These incentives include tax breaks, simplified procedures for obtaining permits and licenses, and grants for R&D activities.
Ukraine’s Investment Promotion Office (UkraineInvest) has also been actively promoting the country’s potential to foreign investors. As a result, there has been a surge in interest from international companies looking to invest in Ukraine, particularly in sectors such as IT, energy, and agriculture.
5. Ukraine’s e-commerce market grows rapidly
Ukraine’s e-commerce market is growing rapidly, with more consumers shopping online for goods and services. The coronavirus pandemic has accelerated this trend, as people have been forced to shop from home.
According to a report by InVenture Partners, the Ukrainian e-commerce market is expected to reach $4.9 billion by 2023, up from $2.3 billion in 2018. Ukrainian e-commerce companies such as Rozetka and Yandex.Market have been expanding their operations to meet growing demand.
In conclusion, Ukraine is a country that is ripe with potential, particularly in the areas of IT, renewable energy, and e-commerce. The top five Ukraine business news outlined in this article highlight the exciting developments that are set to shape the country’s economic future in 2021 and beyond. As Ukraine continues to open up to the world, there are plenty of opportunities for businesses to explore.
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