EXPORT PROMOTION OFFICE REPORT SEPTEMBER-DECEMBER 2015 For each $1 of export promotion, we estimate a $300 increase in exports Daniel Lederman, a former Lead Trade Economist of the World Bank
EXPORT PROMOTION OFFICE REPORT Contents Summary __________________________________________________________________________________________________ 3 Project Background ______________________________________________________________________________________ 4 Export Promotion Events ________________________________________________________________________________ 6 Export Promotion Council _____________________________________________________________________________ 15 Promotional Marketing Materials _____________________________________________________________________ 26 Our Team ________________________________________________________________________________________________ 27 Contact Information ____________________________________________________________________________________ 27
Page 2
EXPORT PROMOTION OFFICE REPORT Summary
Page 3
EXPORT PROMOTION OFFICE REPORT Project Background Export Promotion Office (EPO) started its work as a group of volunteers in April 2015 with a view to assist the Ministry of Economic Development and Trade (MEDT) in achieving its export promotion objectives. In September 2015, WNISEF upon request from MEDT provided technical assistance to establish and launch the Export Promotion Office. The main tasks of the EPO are to assist the Ministry and Deputy Minister - Trade Representative with the immediate duties and tasks related to Ukraine’s trade development and export promotion programs and grow EPO into the Export promotion agency within 2-3 years. EPO as the group of experts is headed by the lead expert Maryana Kahanyak, who after 4 months of volunteering at the MEDT is currently leading the initiative in the role of EPO Head. The initial project concept and structure has been developed by the current office head and approved by the Deputy Minister – Trade representative Nataliya Mykolska. The EPO was launched in September 2015 and until present it has been growing quantitatively and qualitatively in order to fulfill its organizational and advisory tasks of assisting the Ministry of Economic development and Trade of Ukraine. The MISSION of the Export Promotion Office is to support MEDT and Deputy Minister/Trade Representative in fulfilling the ongoing tasks and activities and assist Ukrainian and Ukrainian-based businesses to:
Increase export; Enter new markets; Increase share on existing markets; Promote Ukrainian products & brands;
EPO provides daily support to the process of building export promotion capacities, increasing export awareness, facilitating cooperation between public and private sectors to improve export enabling environment and promote exports. To fulfill these tasks EPO has employed a team of professionals of senior and junior level on short and long term period (full and part time).
Page 4
EXPORT PROMOTION OFFICE REPORT As of December 2015 EPO includes 5 full-time experts working in the following areas: Business Forums Preparation of high profile business and political events in a variety of countries across the globe. Examples are the US - Ukraine Business Forum in Washington, DC (attended by over 300 American and Ukrainian CEOs, Vice President of the United States Joe Biden, Prime Minister of Ukraine Arseniy Yatsenyuk and other top ranking officials); German - Ukrainian Business forum in Berlin, Germany (attended by 650 Ukrainian and German businesses, Prime Minister of Ukraine Arseniy Yatsenyuk and Chancellor of the Federal Republic of Germany Angela Merkel); Kazakhstan - Ukraine Business Forum in Astana, Kazakhstan (attended by 500 Ukrainian and Kazakh businessmen, the President of Ukraine Perto Poroshenko, the President of Kazakhstan Nursultan Nazarbayev, and other top officials; Trade Missions Preparation of export promotion trips with Ukrainian business and political representatives; Export Promotion Council Preparation of events between businesses and top government representatives to facilitate dialogue and develop practical solutions for export promotion. Examples are meetings with representatives of meat and milk industry, meetings on cooperation with EU, China, France and other countries. Total reach of Export Promotion Councils is over 700 exporters; Marketing and Promo materials Preparation of promotional videos (Ukraine. Open for U, Ukraine is Changing, Grow Ukraine, Energize Ukraine), brochures, leaflets, souvenirs etc.; Export Promotion web portal Development of the prime information portal for Ukrainian exporters; Database of Exporters Development of comprehensive database of current and potential exporters.
Page 5
EXPORT PROMOTION OFFICE REPORT Export Promotion Events One of the EPO objectives is providing support to the MERT and Government of Ukraine in organizing various export promotion events in Ukraine and abroad such as: trade missions, conferences, seminars, business forums, symposiums, B2B meetings, etc.
4 Business Forums were organized by EPO within 6 month of its activity: US – Ukraine Business Forum Kazakhstan – Ukrainian Business Forum Ukrainian – German Business Forum French – Ukrainian Business Forum* * the event was postponed to 2016 for security reasons because of series of terrorist attacks in Paris The organized events aimed at: Creating an effective B2B communication platform; Establishing and facilitating direct dialogue between business and government; Highlighting the achievements of current economic reform policy of the Ukrainian Government; Revealing the investment, export and privatization potential and possibilities of cooperation with Ukraine; Rebuilding trust to Ukrainian government and Businesses and their perception as reliable partners;
Page 6
EXPORT PROMOTION OFFICE REPORT U.S.-UKRAINE BUSINESS FORUM, WASHINGTON DC, USA Date: 13 July 2015 Venue: US Chamber of Commerce Quantity of guests: 300: - approx. 50 Ukrainian companies - approx. 250 American companies Ukrainian Government Team, led by PM Arseniy Yatsenyuk, and represented by Ministers Aivaras Abromavicius, Natalie Jaresko, Oleksiy Pavlenko, Andriy Pyvovarsky and Deputy head of the Presidential Administration Dmytro Shymkiv, CEO of Naftogaz of Ukraine Andriy Kobolyev and others presented the steps taken to improve investment and business climate of Ukraine. U.S. business leaders shared their perspective on immediate actions that should be taken in Ukraine in order to encourage private-sector engagement. The Forum was aimed at fostering trade, economic and investment cooperation between the two countries. TOPICS PRESENTED/DISCUSSED:
Doing business in Ukraine Agribusiness and infrastructure Knowledge economy, Human Capital, and entrepreneurship Energy and energy efficiency Targeted strategies for financing projects and business growth
KEY SPEAKERS: Joe BIDEN, Vice President of the United States Arseniy YATSENYUK, Prime Minister of Ukraine Natalie JARESKO, Minister of Finance of Ukraine Penny PRITZKER, U.S. Secretary of Commerce Geoffrey R. PYATT, the United States Ambassador to Ukraine CEOs of top American companies doing business in Ukraine CEOs of top Ukrainian companies
“The next couple years, the next couple months will go a long way to telling the tale. If you do what I believe you will, your country will owe you, Europe will owe you, and we will owe you. Because the cumulative impact of Ukraine economically secure and sound will have a profound impact.” - Joe BIDEN, Vice President of the United States
“It was the best presentation of the Ukrainian government for a quarter of century. Convincing speeches in English combined with excellent presentations skills allowed the members of the Ukrainian delegation to represent Ukraine in the best possible way for the US business elite.” - Andy HUNDER, President of American Chamber of Commerce in Ukraine
Page 7
EXPORT PROMOTION OFFICE REPORT EVENTS DURING THE FORUM VIP BREAKFAST The event took place before the beginning of the Forum, giving the businesses a unique opportunity to speak openly face-to-face with high-level officials from both sides. The top GoU representatives spoke about possibilities to do business in Ukraine to CEOs of 23 biggest American companies such as: AGCO Corporation - Black & Veatch – NCH - Broad Street Capital GroupCargill - Carlyle Group - Empire State Capital Partners – Frontera Resources - General Electric - Horizon Capital – Invenergy Monticello Capital and Principal - Soros Fund Management LLC Westinghouse Electric Company - Europe Middle East & Africa – Citigroup - Dupont Crop Protection
Representatives of US companies were able to address their questions and issues to the Prime Minister, Ministers and other representatives of Government of Ukraine, and receive their answers right on spot.
“I think we’re all very excited about the huge potential for American companies to do more business and more investment in Ukraine. And more importantly, the extraordinary efforts of the prime minister, of President Poroshenko, to move Ukraine forward on reforms – financial, economic, political – especially in the incredibly challenging environment in which they’re operating, has the admiration of the Administration and the American people.” - Antony J. Blinken Deputy Secretary of
State
Page 8
EXPORT PROMOTION OFFICE REPORT KAZAKHSTAN-UKRAINE BUSINESS FORUM, ASTANA, KAZAKHSTAN Date: 9 October 2015 Venue: Palace of Independence Quantity of guests: 500: - approx. 50 Ukrainian businessmen - approx. 450 Kazakhstan businessmen The Business forum took place during the two-day official visit of President of Ukraine Petro Poroshenko to the Republic of Kazakhstan, gathering the representatives of business circles, public authorities and national companies from both sides in Astana. Ukrainian side was represented by the heads of large companies specializing in aerospace, mining, engineering, geological exploration, agriculture, food industry. Both countries introduced investment and export opportunities, also spoke about the measures of state support of foreign investors. The sides also have discussed issues related to further trade, economic and investment cooperation.
.
TOPICS PRESENTED/DISCUSSED: Priority areas of economic and trade cooperation Coal industry Transport and logistics sector Agriculture Energy efficiency .KEY SPEAKERS:
Petro POROSHENKO, President of Ukraine Nursultan NAZARBAYEV, President of Kazakhstan Rahim OSHAKBAYEV, Deputy Minister for Investment and Development of Kazakhstan Bakhytzhan SAGINTAYEV, First Deputy Prime Minister of Kazakhstan Gennady ZUBKO, Vice Prime Minister - Minister of Regional Development, Construction and Housing and Communal Services of Ukraine Aivaras ABROMAVICIUS, Minister of Economic Development and Trade of Ukraine Jaroslav KRASNOPOLSKIY, First Deputy Minister of Agrarian Policy and Food of Ukraine
«Roadmap 5» - an Action Plan of Kazakhstan and Ukraine for 2015–2017 signed by the First Deputy Prime Minister of Kazakhstan Bakhytzhan Sagintayev and Deputy Prime Minister - Minister of Regional Development, Construction and Housing and Communal Services of Ukraine Gennady Zubko; Agreement on the supply of coal from Kazakhstan for Ukrainian power stations.
Page 9
EXPORT PROMOTION OFFICE REPORT MEETING BETWEEN MINISTER ABROMAVICIUS AND GERMAN BUSINESSES Date: 8 October 2015 Venue: Ministry of Economic Development and Trade, Kyiv,
Ukraine Quantity of guests: - approx.
40 German businessmen
The meeting took place in the framework of Ukrainian-German Business Forum preparation, and gave an opportunity to over 40 German businesses in Ukraine including Ukrainian companies with German investments to address the most burning issues of their business to the Minister, State Fiscal service and other representatives of Government of Ukraine and discuss the possible solutions.
KEY PARTICIPANTS: BASF SE KLINGSPOR DHL International KOSTAL Ukraine DB Schenker ROBERT BOSCH LTD HAFELE Ukraine and many more GERMAN EMBASSY in Ukraine, GoU representatives TOPICS PRESENTED/DISCUSSED: VAT reimbursement Simplification of tax paying and administrative procedures Business environment and the rights of foreign investors in Ukraine Currency restrictions, etc.
All issues were submitted to the relevant ministries for further actions. The amounted sum of VAT that was refunded to Ukrainian businesses with German
investments, which were present at the meeting, starts at UAH 16 000 000
Page 10
EXPORT PROMOTION OFFICE REPORT UKRAINIAN-GERMAN BUSINESS FORUM, BERLIN, GERMANY Date: 23 October 2015 Venue: Haus der Deutschen Wirtschaft Quantity of guests: 650: - approx. 50 Ukrainian companies
- approx. 600 German companies The forum of such scale was held for the first time in the history of Ukrainian-German relations. The Ukraine’s delegation for the event was represented by Prime Minister of Ukraine Arseniy Yatsenyuk, Vice Prime Minister of Ukraine Hennadiy Zubko, Ministers Natalie Jaresko, Aivaras Abromavicius, Oleksiy Pavlenko, Andriy Pyvovarsky and Deputy Head of the Presidential Administration Dmytro Shymkiv, CEO of Naftogaz of Ukraine Andriy Kobolyev. TOPICS PRESENTED/DISCUSSED:
German-Ukrainian Business Relations: Potential, Reforms, Challenges Industry and Energy Transport and Logistic Agriculture and Food Industry Knowledge-based & High Technology Economy
KEY SPEAKERS FROM GERMAN SIDE: Dr. Angela MERKEL, Federal Chancellor Dr. Thomas STEFFEN, State Secretary, Federal Ministry of Finance Dr. Eric SCHWEITZER, President Association of German Chambers of Commerce and Industry Uwe BECKMEYER, Parliamentary State Secretary, Federal Ministry of Economy and Energy Dr. Markus EDERER, State Secretary, Federal Ministry of Foreign Affairs Matthias MACHNIG, State Secretary, Federal Ministry of Economic and Energy Rainer BOMBA, State Secretary, Federal Ministry of Transport and Digital Infrastructure Peter BLESER, Parliamentary State Secretary Federal Ministry of Food and Agriculture CEOs of top German companies
“Ukraine has a good basis for economic development. Worthy salaries, high professional skills combined with fairly large domestic market create good prerequisites for that. Ukraine has a number of developed sectors. I mean agrarian sphere, engineering, aircraft industry in particular.” - Angela MERKEL, German Federal
Chancellor
Page 11
EXPORT PROMOTION OFFICE REPORT EVENTS DURING THE FORUM VIP BREAKFAST The reception took place before the beginning of the Forum. Top 15 GoU representatives spoke to CEOs of 25 biggest German
companies. Among them:
Sevki Acuner, EBRD Alexander Arnold, SAP AG Christian Berner, EPAM Systems GmbH Andreas Brand, LEONI AG Martin Dawkins, Bayer CropScience AG Dr. Marcus Felsner, Osteuropaverein der deutschen Wirtschaft Mark Frese, METRO AG Dieter John, Bombardier Transportation GmbH Markus Krebber, RWE Supply & Trading GmbH
Andreas Kuhlmann, Deutsche Energie-Agentur GmbH Rainer Lindner, Ost-Ausschuss der Deutschen Wirtschaft Siegfried Russwurm, Siemens AG Klaus Schmocker, HPC Hamburg Port Consulting Ukraine Martin Schumacher, METRO Cash and Carry Ukraine Harald Schwager, BASF SE Crister Stark, Vaderstad Group Dirk Stratmann, John Deere International GmbH Peter Tils, Deutsche Bank AG
EVENING RECEPTION took place at the Haus der Deutschen Wirtschaft, the venue of the Forum, to give the representatives of GoU and both – Ukrainian and German businesses - to have unofficial b2b meetings, a chance to introduce themselves to one another, exchange contact details etc. SIGNING OF THE AGREEMENTS As a result of the Forum, both governments of Ukraine and Germany signed an agreement to set up Ukrainian-German Chamber of Commerce, which will be headquartered in Kyiv. An official ceremony of the signing took place in the presence of PM Yatsenyuk and Chancellor Merkel.
Page 12
Natalia Jaresko, Minister of Finance of Ukraine, and Philip Bennett, First Vice President and Chief Operating Officer at the European Bank of Reconstruction and Development, inked a Guarantee agreement worth US$ 300 million for the purchase of about 1.1 billion cubic meters of gas for the coming winter by NJSC Naftogaz of Ukraine.
EXPORT PROMOTION OFFICE REPORT BUSINESS BREAKFAST OF MINISTER ABROMAVICIUS AND U.S. BUSINESSES Date: 15 October 2015 Quantity of companies: 7 U.S. companies
The event was organized within the framework of preparation to the official visit of Penny Pritzker, the Secretary of State for Commerce. During the dialogue, which had a preparatory character, U.S. business representatives and Mr. Abromavicius discussed issues of common interests and the solutions of the existing problems.
KEY PARTICIPANTS
CARGILL CITIBANK DUPONT HONEYWELL JOHN DEERE NCH CAPITAL WESTINGHOUSE U.S. EMBASSY in Ukraine GoU representatives TOPICS PRESENTED/DISCUSSED:
Tax reform including VAT reimbursement Administrative procedures simplifying Business climate improvement Foreign investors rights Intellectual property rights protection strengthening Financial and banking system reform, Corruption issues
Representatives of U.S. companies were able to address their questions and issues to the Minister and other representatives of Government of Ukraine, receive their answers right on spot.
Page 13
EXPORT PROMOTION OFFICE REPORT MEETING OF MINISTER ABROMAVICIUS WITH FRENCH BUSINESSES Date: 5 November 2015 Venue: Ministry of Economic Development and Trade, Kyiv,
Ukraine Quantity of guests: - approx. 40 French companies
The meeting took place in the framework of the French - Ukrainian Business Forum preparation. Representatives of more than 40 French companies working in Ukraine were able to address their questions and issues to the Minister and other representatives of Government of Ukraine. KEY PARTICIPANTS:
SANOFI LACTALIS RENAULT UKRAINE L’OREAL AUCHAN DANONE SEB
BELVEDERE CREDIT AGRICOLE ARCELOR MITTAL BNP Paribas LEROY MERLIN PEUGEOT UKRSIBBANK
TOPICS PRESENTED/DISCUSSED:
VAT reimbursement Simplification of tax and administrative procedures Issue of protection of economic competition Protection of rights of foreign investors in Ukraine
Over 26 issues were raised and the ways of solution were discussed
11 Ukrainian companies with French investments received their VAT refund The sum of refunded VAT summed up from UAH 1 355 000 000
Page 14
EXPORT PROMOTION OFFICE REPORT Export Promotion Council
Export Promotion Council was established at the Ministry of Economic Development and Trade of Ukraine by the order # 1113 as of September 8th, 2015. Export Promotion Council’s main task is to assists in constructive dialogue setting between the state and entrepreneurs, identification of problems in export promotion and their quick resolution, as well as protection of interests of external economic entities at international level. Council members are representatives of executive authorities, national associations, unions and alliances of enterprises of Ukraine, economic entities and international organizations. Permanent or temporary committees and working groups are created within the Council in order to develop solutions to actual problems of Ukrainian exporters. Export Promotion Council activities and meetings are coordinated and organized by the EPO.
10 meetings have been organized by EPO over 2 months Over 700 companies attended the meetings Over 1000 active exporters were included into database of exporters
Page 15
EXPORT PROMOTION OFFICE REPORT EXPORT PROMOTION COUNCIL SET UP MEETING Date: 15 October 2015 Venue: Club of the Cabinet of Ministers, Kyiv Quantity of guests: 250: - approx. 200 Ukrainian companies - 50 representatives of central executive bodies Head / participants of the session: o o o o o o o o o
Aivaras ABROMAVICIUS - Minister of Economic Development and Trade of Ukraine Nataliya MYKOLSKA - Deputy Minister of Economic Development and Trade of Ukraine – Ukraine Trade Representative Vadym PRYSTAYKO - Deputy Minister of Foreign Affairs Artem SHEVALOV - Deputy Finance Minister Vladyslava RUTYTSKA - Deputy Minister of Agrarian Policy and Food of Ukraine Oleg DEREVYANKO - Deputy Minister of Education and Science of Ukraine Oleg CHURIY - Deputy Chairman of the National Bank of Ukraine Roman NASIROV - Head of State Fiscal Service Volodymyr OMELYAN - Deputy Minister of Infrastructure
The Minister announced the creation of a new platform that will be a powerful tool for collaboration between government and business, and the beginning of the program of the Government for 2016, and mentioned plans for 2016 to create specific institutions to promote exports. Topics presented/discussed:
Agreement with the Chinese side on the laying of the Silk Road through Ukraine. Multilateral meeting (China, Azerbaijan, Georgia) to address the issue of delivering Ukrainian goods abroad. Promotion and protection of domestic producers in the framework of the Embassies of Ukraine. Solving of complaints provided for sanctions in foreign economic activity; VAT refunds to companies. Currency restrictions in economic activity.
Industries present: Agriculture, Food products, Dairy products, Light Industry, Machine building, Chemical industry, Pharmacy, Logistics. Solutions coordinated and proposed Business has stressed that Minister's support for national exporters is quite noticeable, and the establishment of export-credit agency and providing the proper informational support are extremely important.
Page 16
EXPORT PROMOTION OFFICE REPORT BELARUS EXPORT PROMOTION COUNCIL WORKSHOP Date: 16 October 2015 Venue: Ministry of Economic Development and Trade of Ukraine, Kyiv Quantity of guests: 30: - approx. 20 Ukrainian companies - 10 representatives of central executive bodies
Head / participants of the session: o o o o
Nataliya MYKOLSKA, Deputy Minister of Economic Development and Trade of Ukraine – Ukraine Trade Representative Sergey BEDASH - Deputy Head of Customs Policy of Ministry of Finance Representatives of the Ministry of Foreign Affairs Representatives of the State Fiscal Service
Currently, the most critical issue of relations with Belarus is introduction of the latest EU health expertise, which significantly slows the customs procedures for Ukrainian business. Confirming the decision of the Ukrainian interdepartmental commission and CMU №666 recognized the fact of discriminatory actions by the Belarusian side. Topics presented/discussed:
Inability to export dairy products into the territory of Belarus Inability to export engineering goods Inability to export meat products
Businesses appealed to the relevant executive authorities to assist in solving these problems. Industries present: Dairy products, Beer, Construction industry, Confectionery, Chemical industry, Engineering Solutions coordinated and proposed In case of Belarus refusal to abolish additional health expertise, the Ukrainian side will have to introduce mirror-image measures.
Page 17
EXPORT PROMOTION OFFICE REPORT EXPORT PROMOTION COUNCIL WORKSHOP ON MARKET ACCESS FOR DAIRY PRODUCTS Date: 28 October 2015 Venue: Ministry of Economic Development and Trade of Ukraine, Kyiv Quantity of guests: 45: - approx. 33 Ukrainian companies - 12 representatives of central executive bodies Head/participants of the session: Nataliya MYKOLSKA, Deputy Minister of Economic Development and Trade of Ukraine – Ukraine Trade Representative Representatives of the Ministry of Foreign Affairs Representatives of the Ministry of Agrarian Policy Representatives of the Ministry of Infrastructure Representatives of the State SPS security
o o o o o
During the meeting Deputy Minister Mykolska informed business representatives about systemic measures to eliminate restrictions related to the import of dairy products in Kazakhstan, including the transit of goods through Ukrainian territory of the Russian Federation, carried out jointly with the Minister of Agrarian Policy, Ministry of Infrastructure and State SPS security. Topics presented/discussed:
Receiving of veterinary permits for export of dairy products to Africa. Dissatisfaction with the quality of covered wagons of Ukrainian origin. Inclusion into the list of exporters to the markets of EU and China (Group of Companies "Pravio"). The abolition of restrictions on the export to Kazakhstan. Supply of dairy products to Belarus, searching for the roundabout route to the market of Kazakhstan. Inclusion into the list of exporters to the EU market ("Milkiland"). Dairy transit through EU to third countries. Opening transit to Albania, Bosnia, Montenegro, Macedonia (Union of Dairy Enterprises of Ukraine). The shelf life of skimmed milk (in the world 9 months to 24 months), shelf life of dairy products on the TLS (3 months in Ukraine - 12 months in the world) – (SE "Derzhzovnishinform"). Inclusion into the list of exporters to the Chinese market (LLC "Galicia Gourmand"). Export of dairy products to the market of Moldova (GC "Milk Alliance"). Receiving grants for production of dairy products according to the EU standards ("Vimbeldan"). A huge need for support from the state in international exhibition events for Ukrainian producers of the agricultural sector, etc. (Ukrainian Agricultural Council).
Solutions coordinated and proposed
Business representatives underlined the importance of popularizing positive image of Ukraine and Ukrainian business on the world stage; Representatives of the executive authorities have committed to resolve voiced concerns.
Page 18
EXPORT PROMOTION OFFICE REPORT EXPORT PROMOTION COUNCIL WORKSHOP ON EXPORT TO CHINA Date: 3 November 2015 Venue: Club of the Cabinet of Ministers, Kyiv Quantity of guests: 110: - approx. 90 Ukrainian companies - 20 representatives of central executive bodies Head/participants of the session: o o o o o
Nataliya MYKOLSKA - Deputy Minister of Economic Development and Trade of Ukraine – Ukraine Trade Representative Anna VRONSKA - Deputy Minister of Environment and Natural Resources Vladyslava RUTYTSKA - Deputy Minister of Agrarian Policy and Food of Ukraine Representatives of Kiev State City Administration, Representatives of State Veterinary and Phytosanitary Service, Ministry of Energy and Coal Industry
Topics presented/discussed:
Summarizing the bilateral trade and economic cooperation Investment cooperation Cooperation in key areas: Joint participation in the implementation of China's initiative to create “Silk Road Economic Belt” The commerce sector Cooperation in service production industries Cooperation in energy efficiency and renewable energy sectors Cooperation in tourism Problems with phytosanitary control Visa issues
Industries present: Agriculture, Consumer goods, Light Industry, Aviation, IT services, Metallurgical complex, Machine building, Construction and Infrastructure, Chemical industry, Pharmacy, Logistics, Fuel and energy. Solutions coordinated and proposed
Due to correct revision of submitted issues, Export promotion team invited respective representative of state authorities to tackle issues immediately. Export Promotion Office has become a “bridge” between businesses and state authorities in export promotion questions. EPO facilitated a close connection between business and phytosanitary service of Ukraine. For example, we controlled and followed up phytosanitary requests that Ukrainian business have addressed to Chinese market; Also, due to the workshop, majority of business representatives were able to clarify sensitive topics and EPO is entitled to support and follow-up requested information.
Page 19
EXPORT PROMOTION OFFICE REPORT EXPORT PROMOTION COUNCIL WORKSHOP ON EXPORT TO FRANCE Date: 5 November 2015 Venue: Ministry of Economic Development and Trade of Ukraine, Kyiv Quantity of guests: 40: - approx. 30 Ukrainian companies - 10 representatives of central executive bodies Head of the session: o o o o o o
Nataliya MYKOLSKA - Deputy Minister of Economic Development and Trade of Ukraine – Ukraine Trade Representative Representatives of the Ministry of Foreign Affairs Representatives of the Ministry of Energy and Coal Industry Representatives of the Ministry of Youth and Sports Representatives of the Regional State Administrations Representatives of the Antimonopoly Committee of Ukraine
Topics presented/discussed:
Egg production and its export to European Union, including France Absence of permits for exporting beef to EU, including France. Possibility of getting these permits with a help of French colleagues. The annual quotas for the import of molasses, grape and apple concentrates, honey, chicken and canned tomatoes are not satisfying the marketing needs of Ukrainian food producers preceding categories. Ukrainian business is considering and reviewing export opportunities of walnut kernels to France
Industries present: Agriculture, Dairy products, Light Industry, Machine building, Construction and Infrastructure Solutions coordinated and proposed
All issues requested and submitted by businesses were collated and distributed to respected departments of the Ministry. Due to these efforts, Ministry is planning to start consultation with its French colleagues about an opportunity to increase quotas of Ukrainian agricultural products. During the meeting representatives of Export Promotion Council have facilitated a real business contact of the biggest honey production association with Credit Agricole Bank. Currently, they are undergoing through negotiations of potential cooperation.
Page 20
EXPORT PROMOTION OFFICE REPORT EXPORT PROMOTION COUNCIL WORKSHOP ON EXPORT TO IRAN Date: 10 November 2015 Venue: Ministry of Economic Development and Trade of Ukraine, Kyiv Quantity of guests: 40: - approx. 31Ukrainian companies - 9 representatives of central executive bodies Head of the session: Nataliya MYKOLSKA, Deputy Minister of Economic Development and Trade of Ukraine – Ukraine Trade Representative Topics presented/discussed:
Low activity of intergovernmental authorities operating in trade and economic cooperation. Low activity in sharing the information on foreign trade of Ukraine and Iran and possible areas of cooperation. Poor implementation of the agreement between the Government of Ukraine and the Government of the Islamic Republic of Iran on mutual assistance in customs matters of 2002. The low level of bilateral investment cooperation. Low activity of Ukrainian enterprises in the free economic zones (FEZ) of Iran. Failure banking settlements between Ukraine and Iran against the IRI as a result of the introduction of unilateral financial sanctions by the U.S. and EU.
Business has offered its vision of practical steps to solve these problems. Industries present: Banking, Pharmacy, Machinery, Energy Solutions coordinated and proposed
Ms. Mykolska has underlined the importance of enhancing cooperation and identifying promising areas of cooperation with the Islamic Republic of Iran in terms of the process of withdrawal of the country's international multilateral sanctions by the UN Security Council and unilateral sanctions by the EU and the U.S.. The prospect of removing economic and financial sanctions on IRI will enable to carry out financial transactions with banking institutions in Iran. These measures allow Iranian partners to pay Ukrainian exporters for goods and services. It was also determined the importance of developing trade mission to Iran. The trade mission is in plan for 2016 and includes the visit of Ukrainian business as well.
Page 21
EXPORT PROMOTION OFFICE REPORT EXPORT PROMOTION COUNCIL WORKSHOP ON EXPORT OF MEAT PRODUCTS Date: 20 November 2015 Venue: Ministry of Economic Development and Trade of Ukraine, Kyiv Quantity of guests: 31: - approx. 17 Ukrainian companies - 14 representatives of central executive bodies Head / participants of the session: o o
Nataliya MYKOLSKA - Deputy Minister of Economic Development and Trade of Ukraine – Ukraine Trade Representative Representatives of the Ministry of Agrarian Policy and Food of Ukraine
Starting from 01/01/2016 the embargo and rising of duties from Russia are expected and coordinated by the two resolutions. The first ordinance provides for raising fees to the level of bound rates in Russia, the second provides for an embargo on a number of products. Both regulations are complementary. All these actions will lead to preventing supplies meat products of the Russian market. It is necessary to determine the geopolitical strategy for meat production, in particular to define the priority countries and regions of interest for export, and a vision to prohibit exports to Russia. Topics presented/discussed:
The certificate of origin (chicken and pork - the mechanism of reducing the number of necessary documentation for its obtaining). Lack of information database on the list of countries where pork can be exported; opening new markets for export supplies of meat products, such as Japan, China, South Korea, Philippines; creating a clear strategy for redirecting products to other markets due to the closure of RF markets. The rate reduction of 15% VAT for export to African countries;
Solutions coordinated and proposed
Page 22
Businesses expressed requests for support and provision of delegates from Ministry of Economic Development, Ministry of Agrarian Policy, Ministry of Foreign Affairs of the official delegation to participate in a business mission to Angola on exports of beef, chicken, pork, to be held in February 2016. Businesses should identify promising export markets which are interesting for sales. Considering this the Ministry will plan trade missions and visits the following year. Businesses has been requested to send their problematic issues to exportcouncil@me.gov.ua (recovery of VAT - a list of companies, the amount of the debt - to further address the issues to a level of the Prime Minister), a list of products with codes, the country of supply, tariff lines for their processing system with the Ministry of Agriculture and SFS for the simplification of the issuance of the certificate of origin and simplify the application procedure for certification. Ms. Mykolska promised her assistance with planning a meeting of the Commercial Club in 2016. Businesses must generate and send profiles of companies, product range and problems for discussion.
EXPORT PROMOTION OFFICE REPORT EXPORT PROMOTION COUNCIL WORKSHOP ON EXPORT TO EU Date: 26 November 2015 Venue: Club of the Cabinet of Ministers, Kyiv Quantity of guests: approx. 90: - approx. 70 Ukrainian companies - 20 representatives of central executive bodies Head of the session: Nataliya MYKOLSKA - Deputy Minister of Economic Development and Trade of Ukraine – Ukraine Trade Representative Ms. Mykolska has reported the results of exports to EU member states for the first 9 months of 2015, as well as cooperation with Poland and the problems of exports to the EU. Topics presented/discussed: Tariff liberalization for Ukrainian goods (import and export duties ) Tariff quotas and their use; use of geographical indications and EU customs issues Nuts: Recovery of the SFS; delays machines inflated phytosanitary standards; Disadvantage of EUR - 1 certificate. The need for facilitation of the issuance; Lack of information on new standards; VAT default affects the production; Discriminatory taxation of services for export (different VAT). The need for changes in the tax code; Light industry: the VAT on import of equipment. No preferences for domestic producers. The necessity of VAT instalments. Pharmaceuticals: production certification - GMP are not recognized in the EU, need to obtain another certificate. Foreign exchange's control problem; CCI: no single legal document concerning exports. Export Credit agency. Business appealed to the relevant executive authorities to assist in solving these problems. Industries present:
Dairy products, Nuts, Machinery, Engineering, Light industry, Agriculture, Pharmacy
The main task is to shift from exporting raw materials to exporting ready-to-use products with high added value. It will make the country less dependent on fluctuations in world demand and strengthen the economy; Ukrainian companies will be able to import duty-free raw materials and products from EU, which is a leader in high-tech and energy-efficient equipment. The EU is considering Ukraine as a platform for the location of production capacities for the domestic market and for export, and also for re-export to the third country markets.
Page 23
EXPORT PROMOTION OFFICE REPORT EXPORT PROMOTION COUNCIL WORKSHOP ON EXPORT TO RUSSIAN FEDERATION Date: 26 November 2015 Venue: Club of the Cabinet of Ministers, Kyiv Quantity of guests: approx. 50: - approx. 30 Ukrainian companies - 20 representatives of central executive bodies Head of the session: Nataliya MYKOLSKA - Deputy Minister of Economic Development and Trade of Ukraine – Ukraine Trade Representative The session’s topic urgency was caused by the restrictions to be introduced by Russia at the beginning of 2016. It essentially appears at many export sectors of Ukraine. Topics presented/discussed:
The increase of import duties on Ukrainian products The introduction of embargo on certain goods list for Ukrainian products
Industries present: Dairy products, Confectionary, Machinery, Engineering, Light industry, Agriculture, Pharmacy Now it is necessary to create the strategy of markets diversification measures of prevention.
Page 24
EXPORT PROMOTION OFFICE REPORT EXPORT PROMOTION COUNCIL MEETING WITH PRIME MINISTER OF UKRAINE Date: 10 December 2015 Venue: Club of the Cabinet of Ministers, Kyiv Quantity of guests: approx. 235: - approx. 175 Ukrainian companies - 50 representatives of central executive bodies Head / participants of the session: o o o o o o o
Arseniy YATSENYUK - Prime Minister of Ukraine Aivaras ABROMAVICIUS - Minister of Economic Development and Trade of Ukraine Nataliya MYKOLSKA - Deputy Minister of Economic Development and Trade of Ukraine – Ukraine Trade Representative Vladyslava RUTYTSKA - Deputy Minister of Agrarian Policy and Food of Ukraine Andriy PYVOVARSKY - Minister of Infrastructure Roman NASIROV - Head of the State Fiscal Service Oleg CHURIY - Deputy Chairman of the National Bank of Ukraine
Export Promotion Council end of year meeting, headed by the PM Arseniy Yatsenyuk gave more than 170 companies an opportunity to personally raise the problems and receive answers directly from the Prime Minister and respective Ministers. Topics presented/discussed:
Delays in VAT return, and consequences for business. Sectoral taxation and duties. Increased railway tariffs on transportation for exporters. Development of new markets and doing future business with the EU. IT - export industry development perspectives. Recycling issues and licensing of the Ministry of Environment. Facilitation of customs procedures for walnut exporters.
Solutions coordinated and proposed
Prime Minister suggested having quarterly meeting of Export Promotion Council with his participation. The issue of debt repayment of VAT will be resolved by the end of the year. The legal basis of India’s measures of raisin the import tax on Ukrainian yellow pea, should be checked and analysed in accordance with signed agreements. Railway tariffs on transportation for exporters will be balanced. A separate meeting will be held to solve pharmaceutical industry issues related to exports to EU. The customs procedures for walnuts exporters will be facilitated and simplification of taxation will be applied. It was suggested for IT-industry representatives to participate in the selection of sales representatives of Ukraine in 8 countries.
Page 25
EXPORT PROMOTION OFFICE REPORT Promotional Marketing Materials EPO has initiated and coordinated a number of promotional marketing products and ideas to support export promotion events and activities. VIDEOS Within the frames of Business Forums preparation 4 promotional videos were initiated, produced and translated into several languages under EPO team coordination and supervision. Videos were demonstrated during the forums and are available for public access on Youtube.
VIDEO
LINK
Ukraine. Open for U (ENG/GER/FR/CHN) Ukraine is Changing/Reforms/ (ENG/GER/FR/CHN) Grow Ukraine. /Agro Potential/ Energize Ukraine/ Energy Efficiency/
https://www.youtube.com/watch?v=jdSQuanI8Z8 https://www.youtube.com/watch?v=H7RVIsZEUiI https://www.youtube.com/watch?v=3gTIstIfF20 https://www.youtube.com/watch?v=DF6Sr2KTVuA
A 2 minute video Ukraine open for U became a YouTube hit with over a quarter of a million views in the first 2 days. BROCHURES / LEAFLEATS EPO has initiated and ensured the Invest in Ukraine Brochure translation from English into 3 more languages in order to make it available for a wider target audience during Business Forums and other international events. OTHER INITIATIVES -
Souvenir Bags with Ukrainian ornament; Email addresses exportcouncil@me.gov.ua and change.trade@me.gov.ua created to facilitate communication between business and Ministry on the export issues.
Page 26
EXPORT PROMOTION OFFICE REPORT Our Team MARYANA KAHANYAK Office Head
IRYNA ONIKIENKO Project Manager
OLEKSANDRA GRYTSENOK Project Manager
Tel +38 (050) 371 21 51 mkahanyak@me.gov.ua
Tel +38 (093) 285 48 98 onikienkoi@gmail.com
Tel +38 (098) 482 14 55 alegry@gmail.com
STANISLAV KARTAVYKH Analyst
ALINA BODAYEVA Project Manager
Tel +38 (050) 389 31 64 kartavykh@gmail.com
Tel +38 (067) 657 29 10 a.bodaeva@gmail.com
Contact Information Export Promotion Office 01008 Kiev, Ukraine 12/2, Hrushevskogo str., office. 306 Tel 044 200 44 38
Page 27