During Prime Minister Narendra Modi’s recent historic visit to Ukraine, Ukrainian President Volodymyr Zelenskyy, in response to a question posed to him by Times of India’s Rudroneel Ghosh, said that Ukraine is open to India amplifying its economic recovery in all possible sectors. Halyna Yanchenko, a People’s deputy of Ukraine, secretary of the office of National Investment Council of Ukraine, and part of a newly created working group on the Ukrainian defence industry, spoke to Rudroneel Ghosh about why Indian businesses should take advantage of the opportunities Ukraine provides despite the war:
What are your impressions about PM Modi’s recent landmark visit to Ukraine?
This has indeed been a historic visit.I am looking forward to more cooperation between India and Ukraine in terms of both economic relations and diplomacy. I believe we have a lot of room for improvement in various sectors. There are a number of companies working in Ukraine that are owned or managed by people of Indian origin. These include diverse companies in sectors such as agriculture – there are companies exporting sunflower oil to India – pharmaceuticals, prosthesis etc. But most importantly, it was important to have a fair discussion with PM Modi about India’s position on Russia’s war of aggression against Ukraine. We respect India as a country and as a partner. Therefore, it is very important for us that India as a member of the civilised world, and as a country that respects international law and globally recognised borders, supports Ukraine and speeds up victory day on terms that are consistent with international norms and principles.
Are there any policies to encourage Indian participation in the reconstruction of Ukraine?
There are three sectors in Ukraine that might be attractive for foreign investors. Construction or reconstruction, energy, and defence and security. Despite the war-related risks, there are huge demands in these three sectors. Personally, I put a lot of effort in the defence and security sector. This is because fantastic innovations are taking place in Ukraine in this sector. There are many Ukrainian companies that cooperate with Ukrainian military units to speed up all types of innovation. Therefore, I would encourage Indian investors to take a closer look at this sector. I believe Ukraine can become a reliable defence-security partner for India spanning exports and co-production of innovative defence equipment.
In construction, a lot of investment is already flowing in. For example, Ireland is leading among foreign investors for producing construction materials in Ukraine. Over the past three years, they invested over $500 million in production of these types of products in Ukraine. I believe this is a good sign for foreign investors to take a look at venture capitalist investments in Ukraine. I want to underline that these types of investments in Ukraine are super profitable and socially responsible.
But in the defence sector, isn’t there currently a ban on export of lethal equipment by Ukraine?
Yes, there is such a regulation. But the working group I am leading in our Parliament as well as our Cabinet ministers are working towards liberating this regulation. This regulation was very important in the beginning of the full-scale invasion when we didn’t have a clear idea of what is being produced in Ukraine and what is needed by the Ukrainian Armed Forces. But now we have a much better grasp over this and therefore such regulations can now be suitably amended.
Could you elaborate on Ukraine’s war-risk insurance and if Indian companies can take advantage of this.
This was our very ambitious goal at the beginning of the full-scale invasion to attract the financial tools that might mitigate the risks of investments in Ukraine. I am very proud that I was involved in this process. We started negotiations with different insurance agencies and the first agencies to join this initiative were the US International Development Finance Corporation and World Bank’s MIGA that decided to provide war-risk insurance for companies that invest in Ukraine. After this a number of countries joined this initiative and now there are more than 18 countries that provide war-risk insurance to either all international investors who invest in Ukraine or investors from their own countries who invest in Ukraine.
The war in Ukraine has indeed produced many challenges. But it has also created opportunities from a business point of view like in supply of defence equipment and ammunition, logistics, and delivery of decentralised energy infrastructure. Why shouldn’t Indian companies take advantage of these opportunities and consider investing in Ukraine?
Given India’s strength in IT, are there opportunities in this sector?
Of course, there is a lot of room for cooperation in IT. Both India and Ukraine have a lot of IT specialists. We both need to develop the skill of business management in IT, and I would like to see more IT start-ups managed and owned by Ukrainians. So I believe that Ukraine and India can collaborate in the IT start-up space and produce IT products and services for the global market.
Can Ukraine serve as a gateway for Indian businesses to the EU?
Of course. This would be another type of crucial investment in Ukraine from the Indian point of view. For Indian investors who are already actively doing business with Ukraine, investing in manufacturing, selling or buying goods, as well as for those who plan to start such business in the near future, Ukraine can be a direct and effective gateway to Europe, a place through which it would be possible to enter the huge solvent European market, given Ukraine’s future membership of the European bloc. Indian businesses should really take advantage of this opportunity.
What are your impressions about PM Modi’s recent landmark visit to Ukraine?
This has indeed been a historic visit.I am looking forward to more cooperation between India and Ukraine in terms of both economic relations and diplomacy. I believe we have a lot of room for improvement in various sectors. There are a number of companies working in Ukraine that are owned or managed by people of Indian origin. These include diverse companies in sectors such as agriculture – there are companies exporting sunflower oil to India – pharmaceuticals, prosthesis etc. But most importantly, it was important to have a fair discussion with PM Modi about India’s position on Russia’s war of aggression against Ukraine. We respect India as a country and as a partner. Therefore, it is very important for us that India as a member of the civilised world, and as a country that respects international law and globally recognised borders, supports Ukraine and speeds up victory day on terms that are consistent with international norms and principles.
Are there any policies to encourage Indian participation in the reconstruction of Ukraine?
There are three sectors in Ukraine that might be attractive for foreign investors. Construction or reconstruction, energy, and defence and security. Despite the war-related risks, there are huge demands in these three sectors. Personally, I put a lot of effort in the defence and security sector. This is because fantastic innovations are taking place in Ukraine in this sector. There are many Ukrainian companies that cooperate with Ukrainian military units to speed up all types of innovation. Therefore, I would encourage Indian investors to take a closer look at this sector. I believe Ukraine can become a reliable defence-security partner for India spanning exports and co-production of innovative defence equipment.
In construction, a lot of investment is already flowing in. For example, Ireland is leading among foreign investors for producing construction materials in Ukraine. Over the past three years, they invested over $500 million in production of these types of products in Ukraine. I believe this is a good sign for foreign investors to take a look at venture capitalist investments in Ukraine. I want to underline that these types of investments in Ukraine are super profitable and socially responsible.
But in the defence sector, isn’t there currently a ban on export of lethal equipment by Ukraine?
Yes, there is such a regulation. But the working group I am leading in our Parliament as well as our Cabinet ministers are working towards liberating this regulation. This regulation was very important in the beginning of the full-scale invasion when we didn’t have a clear idea of what is being produced in Ukraine and what is needed by the Ukrainian Armed Forces. But now we have a much better grasp over this and therefore such regulations can now be suitably amended.
Could you elaborate on Ukraine’s war-risk insurance and if Indian companies can take advantage of this.
This was our very ambitious goal at the beginning of the full-scale invasion to attract the financial tools that might mitigate the risks of investments in Ukraine. I am very proud that I was involved in this process. We started negotiations with different insurance agencies and the first agencies to join this initiative were the US International Development Finance Corporation and World Bank’s MIGA that decided to provide war-risk insurance for companies that invest in Ukraine. After this a number of countries joined this initiative and now there are more than 18 countries that provide war-risk insurance to either all international investors who invest in Ukraine or investors from their own countries who invest in Ukraine.
The war in Ukraine has indeed produced many challenges. But it has also created opportunities from a business point of view like in supply of defence equipment and ammunition, logistics, and delivery of decentralised energy infrastructure. Why shouldn’t Indian companies take advantage of these opportunities and consider investing in Ukraine?
Given India’s strength in IT, are there opportunities in this sector?
Of course, there is a lot of room for cooperation in IT. Both India and Ukraine have a lot of IT specialists. We both need to develop the skill of business management in IT, and I would like to see more IT start-ups managed and owned by Ukrainians. So I believe that Ukraine and India can collaborate in the IT start-up space and produce IT products and services for the global market.
Can Ukraine serve as a gateway for Indian businesses to the EU?
Of course. This would be another type of crucial investment in Ukraine from the Indian point of view. For Indian investors who are already actively doing business with Ukraine, investing in manufacturing, selling or buying goods, as well as for those who plan to start such business in the near future, Ukraine can be a direct and effective gateway to Europe, a place through which it would be possible to enter the huge solvent European market, given Ukraine’s future membership of the European bloc. Indian businesses should really take advantage of this opportunity.
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