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Author Topic: Here Is Why Doing Business in Ukraine Is Unfortunately a Terrible Idea  (Read 1165 times)

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Online Tom Cat

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Seems very little has changed in Ukraine over the last couple years.
How will Ukraine prosper, and grow without investment from outside?


Here Is Why Doing Business in Ukraine Is Unfortunately a Terrible Idea

http://russia-insider.com/en/heres-why-doing-business-ukraine-unfortunately-terrible-idea/ri16192
Don't shoot the messenger, links to articles posted, don't necessarily reflect my personal opinion.

Offline SuperPanda

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Re: Here Is Why Doing Business in Ukraine Is Unfortunately a Terrible Idea
« Reply #1 on: September 13, 2016, 04:09:30 AM »
Doing business in Ukraine is just as risky as doing business in Russia and you get many of the same problems that the article states.

If you've networked and know what you're doing, you will be fine whether in Russia or Ukraine.

Offline Gipsy

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Re: Here Is Why Doing Business in Ukraine Is Unfortunately a Terrible Idea
« Reply #2 on: September 13, 2016, 06:11:58 AM »
Doing business in Ukraine is just as risky as doing business in Russia and you get many of the same problems that the article states.

If you've networked and know what you're doing, you will be fine whether in Russia or Ukraine.

You have of course some experience with doing business in Ukraine??
Bridge is a lot like sex, either you need a good partner, or a decent hand... Woody Allen


Offline SuperPanda

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Re: Here Is Why Doing Business in Ukraine Is Unfortunately a Terrible Idea
« Reply #3 on: September 13, 2016, 06:44:06 AM »
Doing business in Ukraine is just as risky as doing business in Russia and you get many of the same problems that the article states.

If you've networked and know what you're doing, you will be fine whether in Russia or Ukraine.

You have of course some experience with doing business in Ukraine??
Unfortunately I do, likewise Russia. I wouldn't do it again without utilising connections properly which I and others involved didn't do until too late. It didn't bother me as I lost nothing but time and got paid, the owners were screwed out of a lot.

Offline Manny

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Re: Here Is Why Doing Business in Ukraine Is Unfortunately a Terrible Idea
« Reply #4 on: September 13, 2016, 12:58:25 PM »
I've dabbled in business in Russia. I even tried to manufacture there instead of China. It was another world. Simply put, the people I encountered weren't ready and were unaccustomed to do international business by normal standards. Blokes were asking stupid questions like "How much do you have to spend?" and were more interested in asking my wife out for lunch than they were to actually do a deal or fix prices and terms.

I recently did some business with a firm in St Pete. A big firm, all very professional and they seemed on the ball. They paid for an initial small order on the nail in advance. I did them a very good price to encourage future business. We shipped a handful of specialist electronic items out. They claimed one didn't work. In over a decade I have yet to encounter one that didn't work.  (:)

I gave them the benefit of the doubt, swallowed the profit on the deal and sent a replacement as goodwill. A second order did not follow (as yet). Did we see the typical 'rip off now and to hell with later' mentality I have seen before in Russia and the close FSU? I suspect so, but time will tell.

Even in Estonia, a bloke I had dealt with for a long time shafted me out of just a few Euros because he felt he "deserved" it as he had worked harder than he thought he might have to on one deal of many. I asked him why some numbers didn't quite tally, he blew up. He traded goodwill and trust built up over years to nail me for a few Euros that would hardly pay for one restaurant dinner. These folks dont understand the long view, cannot swallow their own mistakes or deal with anything out of their comfort zone. If it isnt black and white with them earning easy money, they will try to nail your hat on.

That has been my experience, much as I would like it to be different.

Offline dcguyusa

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Re: Here Is Why Doing Business in Ukraine Is Unfortunately a Terrible Idea
« Reply #5 on: February 18, 2017, 11:47:19 PM »
Quote
Blokes were asking stupid questions like "How much do you have to spend?" and were more interested in asking my wife out for lunch than they were to actually do a deal or fix prices and terms.

That's because they were thinking with their "little head" and not with the big one.   :evilgrin0002:

Online Tom Cat

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Re: Here Is Why Doing Business in Ukraine Is Unfortunately a Terrible Idea
« Reply #6 on: October 28, 2017, 10:17:05 AM »


Ukraine must protect foreign investors from raiders | KyivPost

Ukraine is a country with a well-educated young population, rich natural resources, developing infrastructure, and emerging European values. However, these advantages threaten to be overshadowed by the lack of protection for foreign direct investors, weak rule of law, and cases of corruption. As a Danish investor in Ukraine, I know firsthand.Take my company, BIIR, an engineering firm supporting wind energy, oil, natural gas machine building, and defense technology. Established in 2008 in Denmark, we began operations in Luhansk in the fall of 2013 with an engineering operations back office. When Russian-backed separatists attacked our office at the outset of the Donbas war in May 2014, we relocated all of our Luhansk employees and their families to Odesa. Eventually it became clear that the conflict would not end soon, so we also moved our Ukraine operations to Odesa. Since 2013, BIIR has grown from eight employees in the country, to 110 today – and with plans to expand to 500 employees by 2020.We know the importance of corporate social responsibility. Therefore, at BIIR, we pay highly competitive wages and include benefits – all of which is done officially and transparently. Our belief and practice of doing business honestly resulted in BIIR being named “Taxpayer of the Year” in Odesa for 2015.After moving our headquarters to Odesa, we began searching for an office building of our own, and eventually located a property located at Primorskaya 3b to house our expanding Ukrainian operations. Since the previous owner had not paid their mortgage for more than six years, the financial institution foreclosed on the property and needed to resell it. We purchased the building in March this year in good faith and according to Ukrainian legislation.Unfortunately for us, the building previously belonged to businessmen with connections to Russian business and Yanukovych-era corrupt politicians. In Odesa, those connections are apparently more influential than rule of law and property rights. Thus, despite refusing to pay their mortgage for six and a half years, as well as admitting in court that they had received the final notice of foreclosure from the financial institution, these businessmen filed a case to try to take control of the building that BIIR had legally and transparently purchased.In August this year, the Economic Court of Odessa actually sided with the six year delinquent businessmen to award the building back to them, and without any compensation whatsoever for BIIR. Even more remarkably, the Odesa courts declared that the former owners would have their $368,000 in unpaid mortgage debt completely eliminated. Naturally we appealed this kangaroo court decision to the Odesa Appeals Court, and after an initial postponement, the case is now scheduled to be heard on Nov. 6. We shall see if the Appeals Courts in Odesa will base its ruling on who has local political connections, or the actual facts of the case.However, we are Danes, we are Europeans, and we still believe that there can be justice in Ukraine – even for foreign investors. Thus, we are prepared to appeal all the way to the Ukrainian Supreme Court and if needed, even to the European Court of Human Rights. If Ukraine wants to be in Europe, then basic rights must be protected according to European practices.Ukraine has two agencies charged with the task of bringing foreign investment to the country, but it only takes one case like ours to deter investors and undermine their work. We appeal to Ukraine’s President, Prosecutor General, courts and other governmental institutions to ensure justice, rule of law and to protect the rights of foreign investors. If Ukraine wants to show it is serious about fighting corruption, then our case is a perfect place to start

https://www.kyivpost.com/article/opinion/op-ed/thomas-sillesen-ukraine-must-protect-foreign-investors-raiders.html
Don't shoot the messenger, links to articles posted, don't necessarily reflect my personal opinion.