Ukraine moves from heavy industry to light industry

The head of the German-Ukrainian Chamber of Commerce notes the positive development of economic relations with Ukraine, focusing on the growth of exports from Austria and Germany to Ukraine.

Alexander Markus, CEO of the German-Ukrainian Chamber of Commerce, speaks of positive developments last year: Germany increased its exports to Ukraine by 17 percent and noted an increase of just over five percent of imports from Ukraine.

Commenting on the situation in Ukraine, Markus said: "We see a transition from heavy industry, which has been leading for a very long time in the country, towards light industry." One of the reasons for the withdrawal of heavy industry, in his opinion, is the overdue modernization. “Most of the properties with their own models have become uncompetitive in recent years,” said Markus. Modernization requires investment, which is difficult to do in an unstable situation in the country.

Looking at the overall economic development of Ukraine, however, experts are optimistic. According to Mark, for companies from abroad, concerns about lack of legal protection and corruption are still the biggest obstacles to economic interaction. This applies "especially to companies that do not have local experience, but those who are already here and know this country are growing very strongly at the moment."

More successful industries for foreign companies to establish themselves in Ukraine are “food processing in addition to the agricultural sector, which is more resilient to the crisis”. Also, some foreign companies are currently interested in the automotive electronics sector, notes Alexander Markus.