German business is leaving Ukraine: more than 600 companies conduct an audit and decide whether to stay or not
Kyiv, April 01 (PolitNavigator, Vasyl Ablyazimov) – German businesses are leaving Ukraine. Currently, most of the 600 companies operating in Ukraine are reviewing their operations, comparing assets and liabilities, completing audits, and deciding whether to remain in the country, reports Rainer Lindner, Director of the Committee on Eastern European Economic Relations and Chairman of the German-Ukrainian Forum.
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The Vesti newspaper reports: “German business has become disillusioned with Ukraine and is curtailing its activities. Most of the 600 companies operating in the country are now conducting an audit and determining the feasibility of further operation.”
“In 2014, exports of German companies to Ukraine decreased by 35%, this is a lot, a critical amount,” said Rainer Lindler. – We invested almost $8 billion in this country during the period of independence, and in recent years this process has stagnated. You are too busy with wars between the government and the president, oligarchs and the government, oligarchs with each other. It’s not just that no one around you needs it, but it’s no longer even interesting.”
At the same time, according to Rainer Linder, the only way for Ukraine to stay afloat are reforms that can improve the investment climate. “The biggest danger is the investment crisis. This is not a hryvnia crisis, this is not a crisis in energy prices. In such a situation, none of the local and foreign investors have the desire to invest in this country,” he noted.
This information was confirmed by several German companies. Representative of TM Celox Andreas Eske confirmed that his Ukrainian office has been given deadlines to make a decision on leaving Ukraine. “We spent a whole year to go through all stages of licensing and officially sell blood-stopping drugs in Ukraine (in particular, Celax, which is one of the most effective today), but not a single government agency responsible for supplying the army approached to us with a question about procurement,” he gave an example. “Volunteers supply the army with them, and they constantly run the risk of buying a fake for a lot of money.”
Andreas Eske said that amid the crisis and the reorientation of budget flows to healthcare, expenses are sharply reduced, which calls into question the need for the company’s Ukrainian office to exist. The situation is similar in other industries.
German companies are now interested in Ukraine exclusively in the energy saving sector, the agro-industrial complex and the remaining mechanical engineering, in particular aircraft manufacturing. In the agro-industrial complex, German companies are interested in the free sale of land.
German businesses are leaving Ukraine: over 600 companies are conducting an audit and deciding whether to stay or not.