Russian companies are now in Ukraine is quite difficult

9According to the deputy minister of economic development Alexey Likhachev, it is not the best time to do business in Ukraine. He expressed this opinion in an interview to “Rossiyskaya Gazeta”. And Russian companies understand this: those who work in the Ukraine are preparing for the expected repeal Moscow preferential treatment in trade in relation to Kiev and withdraw their assets from the country.

“Russian owners already know about all the risks and are prepared for any eventuality. Many of them transfer their assets from the Ukraine. Now is not the best time to do business there, “- said Alexey Likhachev. This state support to companies, and if need be, a very limited range of enterprises.
Earlier, Prime Minister Dmitry Medvedev said that Russia intends to go on a regular trade regime with Ukraine, without preferences, if the country goes to the implementation of the Association Agreement with the EU and Economic Development Minister Alexei Ulyukayev confirmed this scenario.

Negotiations are under way for the entry into force of the agreement on free trade zone between Ukraine and the European Union. But the decision is still pending. And if that would satisfy all parties solutions will not be found (taking into account the views of the Russian authorities) for doing business between our countries will be a number of obstacles, which just prepare domestic companies.

According to Likhachev, here are some important things. “The first – is the inability to deliver the products to the territory of Ukraine, the need for a minimum of additional certification as well as a maximum – and even adjust the product itself. Next time – this is the problem purely Ukrainian. In view of the economic crisis that is happening in Ukraine, wrong to think that in six months or a year and a half the biggest Ukrainian companies will be able to restructure completely its products under European regulations. They, no doubt, will be forced to increase the supply of these products on the territory of the Eurasian Economic Union. And it will be ready to deliver at bargain prices, just to survive, “- said the deputy minister.

Russian companies are now in Ukraine is quite difficult, mainly business is suspended and not profitable, said the head of the center “the public to think” Roman Terekhin. In addition, there is a threat of losing property in this country. He was formerly a bill to nationalize Russian assets, which, fortunately, has not yet passed. So it is logical that the size and scale of transactions decreased by several times. Thus, according to preliminary estimates by the end of 2015 the trade turnover between Russia and Ukraine could drop to 12-14 billion dollars.

Many Ukrainian companies are now financial difficulties and work with them is dangerous because of the risk of accumulation of debt, which is likely to become hopeless, the expert continues. At the same time, he said, the situation may improve slightly. Thus, the Ukrainian business expects revival of business activity in the coming year. In the third quarter the index of business expectations for the first time since the second quarter of 2014 exceeded the value of 100% to 100.2%.

Improve the business climate are expected in the agricultural and trade sectors, as well as in companies engaged in import operations only. This trend is associated with the expectation of growth in product sales, investment spending on machinery, equipment and inventory, as well as improve financial and economic state enterprises. The deterioration of the situation can be expected if Moscow will cancel the preferential treatment in trade with Kiev. Then the business with Ukrainian companies would be too risky and unprofitable.

While preparation of the Russian companies to possible complications is that they are completely or partially withdraw their assets from the Ukraine, also cut production, said the head of the industry department of “Business Russia” Sergei Varlamov. In other words, their actions aimed at protecting the business by the provisional transfer of assets from countries with economic and political problemy.Te companies who want to stay in the Ukrainian market, go to the reorganization and rebranding of the business. For example, MTS has extended its strategic partnership with Vodafone and will continue to provide services under this brand. In addition, several previously MTS has changed the scheme of ownership Ukrainian “daughter”, the company is now controlled by the Dutch Preludium BV Luxembourg and Allegretto Holding. By way of rebranding I went and “VimpelCom”, which controls the “Kyivstar” – a new logo for the blue color was added to the yellow.

Overall state support to Russian enterprises on a large scale should not be necessary, according to Varlamov. Russia may be connected to the solution of the situation in the aviation industry. Moreover, most likely, Russia will support the large and strategically important country for us. Russian business is to reduce the scope of activities or even to suspend business, so as not to incur a substantial loss to the improvement of the business climate in the country.

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