Monday, July 17, 2023
Procurement in Ukraine: companies deliver under difficult conditions
shutterstock.com/GrAl
Ukraine is a reliable trading partner for German and international business even under the most adverse conditions. This message was conveyed by representatives of German and Ukrainian associations as well as companies in the "Webinar on Purchasing in Ukraine - current situation, chances and risks".
The webinar, organised by BME together with Committee on Eastern European Economic Relations (OA) and European Business Association Ukraine (EBA), offered over 100 participants insights into the current situation in Ukraine. The focus was on first-hand reports from German and Ukrainian company representatives, who shed light on international cooperation, risk management, local supply and working conditions.
BME International promotes networking between German and Ukrainian companies. "The aim is to support Ukraine as part of Europe and to connect it as a partner," said Olaf Holzgrefe, Head of International at BME. This point of view is also shared by Stefan Kägebein, Regional Director Eastern Europe of OA: "Ukraine is a key market in and for Europe. We must continue to build and expand trade opportunities."
According to Anna Derevyenko, European Business Association Executive Director and a cofounder pf Global Business for Ukraine, economy in Ukraine continues to run despite difficult conditions: "After the initial shock, there is a lot of agility. Most companies carry on to work even when the market is tight." The best support for Ukraine is that foreign companies continue to stay in contact with Ukrainian suppliers and purchase goods from Ukraine, Derevyenko says.
German company representatives confirm that this is possible. They stated that Ukrainian companies are reliable trading partners despite the war going on there. For example, sensitive goods, such as steel that is produced for railway wheels, are still delivered in excellent quality. The strict requirements of the Supply Chain Due Diligence Act (Lieferkettensorgfaltspflichtengesetz) are also met.
Overall, companies expressed their interest in close cooperation with Ukrainian suppliers. Before the war, they had invested a lot in processes to meet the requirements of European customers: this effort must now be further supported.
The representatives of Ukrainian enterprises also reported on the challenge of keeping operations going during the war. Production continues in many companies, albeit with limited capacity. The reason: a major problem is access to sufficient quantities of raw materials and energy sources, such as coal. Difficulties are also caused by the closure of ports, which leads to the interruption of supply chains or long delivery times.
Nevertheless, Ukrainian companies are confident that the situation has been slowly improving. One reason for optimism is that European customers continue to buy from Ukrainian companies. This is where long-term trade relationships and built trust pay off. Moreover, Ukrainians have learned to react to the difficult situation with creativity. For example, a new factory was built in only five months to replace one destroyed during the war. The company representatives stressed that the top priority is to comply with supply contracts.
Olaf Holzgrefe concludes: "Ukraine remains an important market. To ensure that this is not lost, it needs the reliable support of international partners and, above all, German companies. Cooperation with Ukrainian companies offers many opportunities. Enterprises must therefore establish the cooperation in a timely manner so that Ukrainian suppliers can adapt to the legal framework conditions."