How International Companies Can Plan Successful Ukraine Entry: Insights from BDO in Ukraine

International companies are increasingly exploring opportunities to enter the Ukrainian market; however, successful investment requires not only an understanding of its potential but also a well-chosen strategy. During the international webinar “How to Invest in Ukraine Effectively and Avoid Risks”, experts from BDO in Ukraine shared insights on market entry models, risk minimisation and preparing for the implementation of investment projects.

BDO in Ukraine took part in the international webinar “How to Invest in Ukraine Effectively and Avoid Risks”, organised by the Czech-Ukrainian Chamber of Commerce. The event served as a platform for representatives of the Business Ombudsman Council, UkraineInvest (the Office for Attracting and Supporting Investment), the European Commission and the international business community to discuss investment opportunities in Ukraine, risk mitigation mechanisms and practical models for foreign companies entering the Ukrainian market.

Speaking at the event, Vira Savchenko, CEO of BDO in Ukraine, presented a pragmatic approach to Ukraine entry, highlighting that a successful route into the market often starts well before the establishment of a local legal presence or major capital commitments. For many companies, a phased strategy is more effective, as it allows them to test the market, find reliable partners, assess sources of funding and only then scale up their presence.

In the current climate, Ukraine offers international businesses not only the prospects of post-war reconstruction, but also opportunities for the development of manufacturing, integration into European supply chains, the implementation of infrastructure projects, digital transformation and cooperation with international financial organisations. At the same time, success depends not only on investment, but also on choosing the right market entry model.

The Ukrainian market presents a wide range of opportunities beyond traditional direct investment

Entering the Ukrainian market can be achieved in various ways, depending on a company’s business model, its strategic objectives and its level of readiness to invest. Among the most effective models are:

•  direct export of products or services
• cooperation with local partners or distributors
• integration of Ukrainian manufacturers into international supply chains
• participation in international reconstruction programmes and donor projects
• implementation of pilot projects
• establishing a local presence and making direct investments.

There is no universal market entry formula. The optimal model depends on the sector, sources of funding, level of risk and long-term business objectives.
 

“Successful market entry involves more than capital investment. It requires a clear strategy, deep customer insights, access to funding, and a strong network of trusted partners. It is precisely this preparation that helps businesses turn opportunities into successful projects.” — Vira Savchenko, CEO of BDO in Ukraine.

 

Five questions to answer before entering the Ukrainian market

Before making an investment decision, international companies should assess several key aspects:

• Who is the end customer for the products or services?
• Who is funding the project: the private sector, the state or international partners?
• What rules will govern the procurement process?
• What level of local presence is required to implement the project?
• Which exit strategy best aligns with the company’s strategy?

The answers to these questions help to formulate a realistic business development plan and minimise risks even before operational activities begin.


 

Common mistakes made by foreign companies

During her presentation, Vira Savchenko also highlighted the most common mistakes made by international investors:

• focusing solely on the product rather than the customer’s needs
• starting to look for opportunities only after tenders have been announced
• underestimating the specifics of international donor programmes and procurement procedures
• failing to carry out a comprehensive due diligence of potential partners
• delaying market entry whilst waiting for risks to disappear completely.

Instead, transparent corporate governance, an effective compliance system, thorough preparation for project implementation and a willingness to work for the long term are now becoming competitive advantages.

A practical guide to entering the Ukrainian market

BDO in Ukraine recommends that international companies view market entry as a step-by-step process:

1. Assess market potential and test the business hypothesis.
2. Identify potential customers and available sources of funding.
3. Select the most effective market entry model.
4. Carry out legal, financial and reputational due diligence on partners.
5. Establish an optimal legal, tax and corporate structure.
6. Scale up operations once the business model has been validated.

This approach helps not only to minimise risks but also to utilise resources more effectively at the initial stage of project implementation.

How BDO in Ukraine supports international investors

BDO in Ukraine supports international companies at every stage of their entry into the Ukrainian market: from assessing investment opportunities and developing an entry strategy to conducting due diligence, tax and legal structuring, financial advisory services and comprehensive support for investment projects.

By combining international expertise with an in-depth understanding of the Ukrainian market, the team of BDO in Ukraine helps investors make informed decisions, manage risks effectively and establish a long-term presence in Ukraine.

If your company is considering entering the Ukrainian market, BDO in Ukraine experts will help you develop the optimal entry strategy, assess the risks and provide comprehensive support for your investment project: from the initial stages through to its successful implementation.