Inside Ukraine’s Modern Business Phenomenon
Why waiting for conflicts to end is a missed strategic window for regional businessesBUSINESS INTERVIEWby Mijat KontićGennadiy ChizhikovThe President of the Ukrainian Chamber of Commerce and IndustryThis. . .
Why waiting for conflicts to end is a missed strategic window for regional businessesBUSINESS INTERVIEWby Mijat KontićGennadiy ChizhikovThe President of the Ukrainian Chamber of Commerce and IndustryThis compelling conversation explores the robust economic ties between Ukraine and Serbia despite the profound challenges of the ongoing regional conflict. Guest speakerGennadiy Chizhikov,the President of the Ukrainian Chamber of Commerce and Industry, outlines strategic pathways for bilateral trade, the upcoming Ukrainian-Serbian Business Forum, and structural opportunities for future reconstruction projects. Ukraine recorded GDP growth. Inflation is more or less under controlMany wonder how the Chamber of Commerce functions amid the complex circumstances of the war in your country. Chambers of commerce, more or less everywhere in the world, have very similar activities. First of all, the organisation supports the economy. This implies different types of services. For example, force majeure certificates. Certificates of origin of goods. But even more importantly, opening new markets and finding partners. And on the other hand, the Chamber is a kind of representative. A real representative of the economy in negotiations with the state and institutions. It is practically the same everywhere. For me, a strong state is a very simple formula. If you have a strong chamber and strong business associations, you also have a strong economy and a strong state. That is why it is a great honour for me to work for this organisation and to be a part of the modern history of the Ukrainian economy in this very difficult time. But at the same time, it is a huge opportunity to find new partners and new countries. And despite this critical situation, we continue to work and open new markets. As you can see, I am here in Belgrade today. So—it is really happening. It is important to mention the reason for your visit. One of the reasons —at least one of the main ones —is the central event: the Ukrainian-Serbian Business Forum being held here. Can our audience expect agreements, partnerships, or maybe even memoranda of understanding and cooperation between our countries in the future?Of course. I am sure that the history of Serbia and Ukraine shows a great love for freedom, a strong economy, and cooperation. We are here as a business delegation to find new opportunities at this critical moment of our history, at a time of war. We want to show that Ukraine is a country that can offer European states many opportunities for cooperation, investment, and future joint projects. We are here to organise meetings between the Ukrainian economy and your economy. I am also here to meet with colleagues from the Chamber of Commerce and Industry of Serbia. For me, the Chamber of Commerce and Industry of Serbia is a bridge between the two countries and our economies. For us, it is very important that officials and representatives of our governments also support this process. I am sure that we have a huge potential for cooperation. And one of my roles is to reveal to the new generation of Serbian businesspeople the huge opportunities in Ukraine. Ukraine is a big country, large in terms of territory. Almost like France, with a large population and huge potential. And we have many new opportunities for cooperation. I like to say that we are not here to beg for help. No. We are here to talk to the Serbian economy in the language of business. We want to work together on a “win-win” principle. That is why we will have a big forum tomorrow. A large number of official meetings with government officials are scheduled. On our side, the Deputy Prime Minister, Mr Taras Kachka, will also come. I very much hope that all this will be a very important step toward bringing our economies closer together. Business people are always looking for such opportunities. If we show interest, why not? And I also want to learn more about how to do business in Ukraine and Serbia. I want to be here today and maybe again next time. And on our side, it will be a great pleasure to invite the fantastic Serbian business community to Ukraine as well. The resilience of the Ukrainian economy has become a phenomenonCan you tell us more precisely how you assess the current economic cooperation between Ukraine and Serbia? Are there any opportunities you mentioned, and which specific areas could further improve cooperation between our countries in the future?In my opinion, we have great opportunities and great potential for the future. I think that last year, due to the war and logistical problems, trade exchange dropped slightly, but then it started to grow again. But in my opinion, $ 400 million in trade between our countries is not the level we should have. I believe that we have potential for much greater trade cooperation. Ukraine is, in my opinion, one of the leaders in Europe and around the world when it comes to agriculture. Ukraine is a world leader in the production of sunflower oil. We are leaders in many other areas of agricultural production as well—including wheat, corn, and numerous other crops. We also have opportunities in agricultural mechanisation, information technology, logistics, and many other areas. On the other hand, Serbia is a significant economic leader in the Western Balkan region and has strong potential in agriculture, the pharmaceutical industry, and the IT sector. Your IT sector is known not only in Europe, but also around the world. That is why I think we need to sit at the table, talk, and develop cooperation step by step. But it is very important that Serbia can become a kind of hub for us —for Ukraine —for doing business in this part of Europe, in the Balkan region, and with many other countries—if we build an even better mutual understanding. And for Serbian ambitions, the possibility of realising quality work and profit in Ukraine would also be very beneficial. How could existing arrangements, such as free trade agreements, help companies more easily overcome disruptions caused by the war? And are there perhaps successful examples that you could share with our audience?We live in a time in which, I would say, we should remove all obstacles. Obstacles to cooperation. First of all, we are part of Europe. We understand that, of course. Both Serbia and Ukraine are on the path to the European Union. We are ready to help—not only in the humanitarian field, but also in many other directions of business development. That is why I think that it is, of course, more of a political issue. We need to sit at the table and find solutions on how to connect our countries and facilitate business between them. We very much hope that in the near future we will see positive economic signals. On our side, as the Chamber of Commerce, we are very interested in attracting as many Ukrainian companies as possible to cooperate with Serbia. This is no secret. During this difficult war period, Ukrainian companies started opening offices and enterprises in neighbouring countries—Poland, Slovakia, Bulgaria, and Romania. In my opinion, if we find effective solutions through agreements between our countries, Serbia could also become a very good place for the development of Ukrainian business. And for Serbian companies, doing business in our country would also be very beneficial. That is why I look very positively at the future of our cooperation. We have to do it. Can you tell us how the war in Ukraine, both currently and in the long term, affects overall economic stability—not only in Europe but also here in the Western Balkans? And what role, in your opinion, should chambers of commerce play in adapting and navigating in such circumstances?The war affects not only Ukraine, but we see its consequences in the Persian Gulf region, for example. We see how it affects the prices of fuel, fertilisers, and agricultural products. Of course, every war has a bad effect on economic development. One of the very interesting things is that the Ukrainian business, despite the war, continues to develop. Ukraine recorded GDP growth. Inflation is more or less under control. That is why, when I visit colleagues abroad, I am very often asked, and this has now become almost a typical question, not so much about the current situation, but about the fact that Ukraine today is one of the leaders in the production of military technology, such as drones and other equipment or weaponry. But the second question that is always asked is, as I put it, the export, so to speak, of the recipe for the resilience of the Ukrainian economy. Many businessmen and numerous officials ask me: “Gennadiy, we don’t understand how this is possible. Four years of missile attacks, electricity shortages, and numerous difficulties, and the Ukrainian economy still functions, finds new solutions, thinks about new ideas and ways of development. ”In my opinion, in the near future, this will become a real phenomenon that many business schools will study. That is why we, as Ukraine, are ready to share with friends and colleagues the experience of how to stay strong in very unpredictable circumstances. In Ukraine, despite occasional very difficult energy problems, the economy has begun investing in the energy sector. We are thinking about the decentralisation of the energy system. We are thinking about green energy and many other things. Whenever we face restrictions or problems, Ukrainian businesses try to find new solutions and ideas. During the war, more than 500 new companies producing military technology, drones, and other equipment were established in Ukraine. Before the war, we produced about 5,000 drones a year; today, more than 8 million. We want to show what Ukrainian companies, and international companies in general, can achieve. But generally speaking, that resilience is a phenomenon that allows us to view the future positively. How does the Chamber of Commerce view Ukraine’s future reconstruction? And in what way can Serbia help Ukraine in that process?I would very much like it if your country got involved in the reconstruction of Ukraine. I always carry in my mind the image of the best builders, precisely from this region. I still remember that impression from the past. Maybe today it sounds a bit like an image from earlier times, but I am completely sure that the quality of your engineers, construction products, and workforce and builders is very high. And that is precisely one of the opportunities for cooperation. But if we look more broadly, Ukraine, together with its partners, is already thinking about the country’s reconstruction. During 2024 and 2025, the Ukraine Recovery Conference will be held in Gdańsk, where we will bring together thousands of companies from all over the world in one place to discuss new opportunities. And in my opinion, that is precisely why we are here—not to wait for the war to end to start working in Ukraine. We are ready to work right now. We have very good relations with your Chamber of Commerce and would like to organise a visit by a delegation from your country as soon as possible. We are ready to present concrete opportunities for your companies to get involved in the reconstruction and restructuring of Ukraine and to help them find their place in that process. And I am sure that tomorrow, during our conference, many of your companies will better understand how much potential and what opportunities exist for their businesses. The resilience of the Ukrainian economy has become a phenomenonIt is certainly good to hear that there is an active partnership between our countries on both sides. In that sense, are there currently concrete negotiations or perhaps joint projects in development that could significantly strengthen bilateral trade between our countries in the near future?On the one hand, that is a question at the level of states. We very much hope that there will be some memoranda that will enable us to cooperate and trade more proactively and to build even closer relations. On our side, the chambers of commerce of Ukraine and Serbia are considering how to build even stronger bridges between our countries in the interest of the economy. We work together under the auspices of Eurochambres. We also have joint ideas on how to further bring our countries closer to European integration and how to work together in that direction. In addition, we have a joint Serbian-Ukrainian Business Council, through which businesspeople from the two countries periodically have the opportunity to cooperate and develop contacts. There is a memorandum of cooperation and other agreements between our chambers. On the one hand, all this may seem a bit bureaucratic, but on the other hand, that is precisely what is very important for long-term relations and very useful for the economy. In my opinion, the economy must always know that if it is looking for a partner in Serbia or Ukraine, the easiest way is to turn to the nearest chamber of commerce or business organisation with strong international capacities. Of course, for me, the Chamber of Commerce comes first, because I come from that system. You come and say: “I am looking for a partner, help me. ” That is our job. That is our everyday job. And it will be a great pleasure for us, based on our memorandums, agreements, and the Business Council, to be very useful and proactive in supporting the economy of both countries. What is your main message to Serbian businesspeople who want to collaborate with Ukrainian partners in the future?I am here to show that Ukraine not only lives but also fights for its future and wants to be a strong country on the map of Europe. And in my opinion, cooperation between Serbia and Ukraine, in which both sides win, would be very useful in the interest of our states. We are here to open a window through which people will be able to see Ukraine with different eyes—not only through the prism of difficult and crisis moments, but also through the huge opportunities that exist. And I am completely sure that there is a huge potential for cooperation between our peoples and our states. I am here to invite the Serbian business community to see Ukraine as a country where it can do business well and successfully expand its operations. And I will be very glad if, already tomorrow and in the near future, we see more and more business delegations from your fantastic country in Ukraine, as well as Ukrainian delegations here in Serbia. In my opinion, it is not the best solution to wait for the war to end. We are sure that every war ends one day. But I think that right now is the right time to start exploring the market, finding partners, and developing business ideas in the interest of both countries. I am sure that we have a very good perspective, because together we are stronger.