Interview with H.E. Mr. Sergii Shutenko, Ambassador of Ukraine to Greece to Ms. Dina Athanasiou, Associate Advisor, International Relations & Regional Policy, SEV

D.Athanasiou: Your Excellency, Greece is currently trying to strengthen its bilateral relations and expand its trade opportunities. Looking forward to the next day of Ukraine’s post-war recovery, do you believe there are opportunities for the Greek companies in Ukraine? Is Ukrainian entrepreneurship familiar to Greek products and services?

Ambassador: For over a year, Ukraine has faced unprecedented challenges due to full-scale military aggression against our country. Nevertheless, we remain steadfast in our defence of territories and continue to conduct business.

45 Greek-registered companies were active in Ukraine before the war started. Most were engaged in the supply of foodstuffs and seasonal farm goods, corporate consulting, tourism and in the food and beverage sector and also in crewing for ocean-going vessels. So, the Ukrainians are familiar to Greek products and services.

Ukraine is known for skilled labor force and high education level. Ukraine is 21st in The Global Skills Index 2022 mostly in consequence of skills that involve computer science and applied mathematics, software engineering, big data, and machine learning.

Ukraine is historically known as the “bread basket of Europe”. Ukraine is in the top of global ratings: 1st exporter of sunflower oil, 2nd in export of ferro-silico-manganese, 3rd exporter of maize, barley and rape.

I am sure that our countries have opportunities for the fruitful bilateral cooperation.

D.Athanasiou: What about the opportunities on the investment level? Are there any with mutual interest? And if so, in which sectors?

Ambassador: One of the prospective spheres is energy. Greece has a huge experience in renewable energy. It is among the global leaders in terms of penetration of renewable energy sources (RES), according to the latest report by Ember, which focuses on the international energy sector for 2022. Greece took the seventh place internationally.

Wind is the most substantial and promising source of renewable energy in Ukraine, its solar capabilities are also exceptional. With above average wind speeds, solar irradiation and an increasing amount of agricultural waste, Ukraine’s renewables sector is poised for rapid growth. Ukraine’s above-average annual amount of solar irradiation (more than Germany, the industry leader) makes Ukraine an exceedingly attractive producer of solar energy, particularly for existing industrial facilities and the growing agribusiness sector.

IT sphere is also very promising. Amid the 2021 global lockdown, Ukraine’s IT industry showed a 20% growth and gaining a worth of more than $6 billion. Ukraine is a leading IT outsourcing destination in Europe, it has a large talent pool of 200,000 IT professionals, and strong tech education. Ukrainian software developers are recognized among the 5th strongest IT professionals globally thanks to their solid technical expertise, knowledge of emerging disciplines (Go, AI, big data, blockchain, etc.).

Ukraine maintains leading positions in production and exports of cereal grains. The annual cereal crop reaches over 70 million tons. Given the domestic market needs, Ukraine can export approximately 50 million tons of cereal grains annually. Ukrainian agriculture, already enjoying substantial cost advantages due to attractive land rent prices, extremely fertile soil, competitive wages and logistics, still has plenty of headroom for productivity growth as the yields per hectare remain below Western benchmarks.

With additional investments in management, education, irrigation, farming techniques, logistics and value-added production, Ukraine is poised to double its food exports. It can be interesting for the Greek investors.

Shipping and related activities are also promising spheres for investment. I believe that after the war we might renew talks on investing in the Ukrainian infrastructure, in particular ports.

D.Athanasiou: Considering that a Greek company examines its entry market strategy in Ukraine, are there any special factors (tax-oriented etc.) that should be taken into account?

Ambassador: Ukraine has introduced a number of import relaxations to ensure efficient operation of customs formalities during martial law.

Temporarily, until the termination or abolition of martial law on the territory of Ukraine, taxpayers under single tax groups I to III, may use the simplified procedure for declaring goods by submitting a preliminary customs declaration containing all the necessary information for the release of goods in accordance with Article 259 (5) of the Customs Code of Ukraine.

Customs clearance of goods shall be completed as soon as possible, but not more than one working hour from the date of presentation to the customs authority of goods, commercial vehicles subject to customs clearance, submission of a customs declaration or a document replacing it in accordance with law.

The payment for the performance of customs formalities by the customs authorities outside the location of the customs authorities or outside the working hours established for them shall not be charged.

Customs formalities may be performed by another customs authority, including without presenting such goods to this customs authority, under the coordination of the State Customs Service, if the customs authority does not fulfil the tasks assigned to customs authorities due to martial law.

A temporary suspension on the initiation and continuation of documentary customs audits of compliance with the requirements of the legislation of Ukraine on customs, including timeliness, reliability, completeness of accrual and payment of customs payments, has been introduced until the termination or abolition of the martial law.

On 27 July 2022, the law of Ukraine No. 2445-IX came into force, which provides for the exemption from import duty of products and equipment for the storage, transportation, loading and unloading of grain and/or oil crops when imported into the customs territory of Ukraine during the period of martial law and for 30 days from the date of its termination or cancellation, in particular:

– polymer sleeves and bags with a volume of at least 0.8 cubic meters for storing agricultural products;

– self-loading or self-unloading trailers and semi-trailers for transporting agricultural products.

On 4 June 2022, Regulation 2022/870 of the European Parliament and of the Council on temporary trade-liberalization measures entered into force. This decision complements the opportunities available to Ukrainian exporters under the EU-Ukraine Association Agreement.

Now the tariffs stipulated in the Agreement will be temporarily suspended. These are, in particular:

• duties on industrial products;
• suspension of the entry price system for fruits and vegetables;
• suspension of all tariff quotas for agricultural products;
• suspension of anti-dumping duties on imports of goods originating in Ukraine;
• suspension of global safeguards against Ukrainian goods.

D.Athanasiou: Fast forward to 5 years from now, how do you foresee the trade landscape between our two countries?

Ambassador: Fast forward to 5 years from now I foresee increase in trade between our countries. Promising spheres for the bilateral cooperation are energy sector, IT, agri-food and transport.

Greece becomes most important hub for alternative gas in Southeast Europe, Ukraine rebuilds from the war and seeks to implement long-term goals to diversify its energy sources. This cooperation could be mutually beneficial.

Ukrainian businesses have impressively adapted to the current situation, demonstrating extraordinary resilience in a volatile environment. Near 85 percent of enterprises have resumed operations by the end of 2022. Ukraine is a resilient nation. Ukraine has demonstrated its ability to cope with even the most difficult of challenges.

As one of the region’s largest countries with vast natural resources and a well-educated population, Ukraine has the potential to be a major economic engine for the region.

Investing in Ukraine’s future will also serve Europe’s own long-term interests.

Athanasiou: Thank you your Excellency for this fruitful and interesting interview.

Article by Mr . Geoffroy Roux de Bézieux, President of (MEDEF- Mouvement des entreprises de France), at ekathimerini.com

Today marks the beginning of the French business mission to Athens led by the President of the French Business Confederation (MEDEF), together with its international branch, MEDEF International. It is held in a peculiar political and economic context, that encourages a strong, united, and coherent response from European countries.

Greece and France have been maintaining an active political and economic dialogue, bolstered by today’s visit: we will move forward to deepen our relations for a sustained and inclusive economic recovery, along with supporting EU competitiveness and innovation. Decisive and coordinated action is needed to secure the position of European companies.

Greece has emerged stronger from more than a decade of hardship. Despite the consequences of the economic and financial crisis, the Greek economy is transforming, and a virtuous dynamic is in motion. Major strategic decisions have been taken by the Greek government under the leadership of Prime Minister Mitsotakis. The Greek Recovery and Resilience Plan is an ambitious lever for investment and growth over the long term: it has the potential to foster a strong economic recovery, to create jobs and to make Greece ready for the future. France has long been committed to working together with Greece and to strengthening our partnership to achieve these goals.

The present business mission, comprised of thirty representatives of French excellence and know-how, in continuity with this commitment, is attached to pursue a close dialogue with Greece’s business community and Government, to reaffirm the common willingness to put the two countries on track to deliver the 2030 climate goal and to achieve the societal transition required to decarbonize our economies. The areas of contribution between French and Greek companies include notably infrastructure resilience, sustainable cities, industrial decarbonation including nuclear energy, environmental protection, technology and innovation, sustainable tourism and, lastly, the maritime industry, the two last sectors being of paramount importance to our two countries.

Today, both France and Greece stand united, resilient, and ambitious in their strategy to shape long-term trends for a strong Europe at a moment when war is at our borders. This war prompts us to reaffirm our commitment and to take leadership in defending the key European values that unite us, i.e. human dignity and rights, freedom, rule of law, equality and democracy, and in pursuing a rules-based system of global trade governance. We will build a European strategic autonomy by concrete solutions and collective action in response to these challenges. We must reduce our dependencies and vulnerabilities to ensure the security of our supplies, the decarbonation of our energy supply and efficiency, strengthen our resilience and European strategic autonomy and align with the decarbonation and carbon neutrality goal for 2050.

The world is changing rapidly and profoundly as global alliances shift and populism rises. What we are witnessing is not just another era of change but a change of era. Business wants to be part of the solution and ensure that Europe can shape this new era according to its values.

Today, the European business community presents its Ambition for the European Union in 2030. In this paper we set out what is needed to create the right conditions to enhance competitiveness and enable business to play its role in society.

BusinessEurope President Pierre Gattaz said:

“In the view of the European elections, the business community has a strong responsibility to speak up, explain why the European Union is so important for people’s future and to say what needs to be done to ensure that things are going in the right direction.

Companies are the backbone of Europe’s economic stability and people’s prosperity. Entrepreneurs invest, create jobs and make the economy grow. The private sector accounts for 80% of all jobs in the EU; companies in the EU invested almost €200 billion in research and development in 2016; in 2015, companies spent more than €50 billion on vocational training in the EU.

Business is committed to transforming the economic, social, technological, and environmental challenges we are facing into opportunities and defend our European way of life. Let’s together build an EU we can be proud of. The business ambition for Europe in 2030 is to build a European Union with opportunities for all.“

SEV, ACCI, SEVE and Enterprise Greece, cordially invite you to an informative day on the Indonesian market on Tuesday, 20 June 2023 at 14:00 at SEV’s offices (5, Xenofontos str., 10557 Athens).

The purpose of this event is to provide Greek entrepreneurs with insights into the prospects and business opportunities in the Indonesian market.

The event is organized with the support of Eurobank and will be conducted in English. To participate, please register through the provided link here by 19 June 2023. You may find the event program here.

For further information, kindly reach out to SEV (Ms Athanasiou, T: +30 211 5006104, E: ir@sev.org.gr), SEVE (Ms Yialoglou, T: +30 2310535333, E: ny@seve.gr), ACCI (Μs Tina RetzekaΤ: +30 210 3382342, +30 210 3382466, Ε: tretzeka@acci.gr ) and Enterprise Greece (Ms Ladopoulou, T: +30 210 3355746, E: a.ladopoulou@eg.gov.gr).

Sponsored by

Interviewer: Ms. Vicky Makrigianni, Senior Advisor ExportReady, SEV

V. Makrigianni: Your Excellency, we are currently trying to intensify bilateral relations with Hungary. A few weeks ago, we have organized, with your support, an informative event, together with our partners ACCI, SEVE and EG, to increase the awareness on Hungary. Which opportunities can Greek companies explore in the Hungarian market?

Ambassador: I believe there are always space for improvements in case of trade and investments. That is why we have organized a very successful business forum last year on the margin of the visit of Mr. Szijjártó, minister of foreign affairs and trade on the 1st of October 2021. 13 Hungarian and 42 Greek companies attended the event and 80 B2B meeting were conducted between Hungarian & Greek companies.
Greece has significant export opportunities in the Hungarian market in the field of industrial and pharmaceutical products, as well as in the agri-food sector. In addition, Greece is the second preferred tourist destination for Hungarian citizens.
Building on the experience of teleworking and distance learning, the government intends to prioritize digitalisation. Demand for related equipment and technology, administrative, banking and business solutions and applications is expected to increase.
In the field of tourism, hotels, restaurants have to meet increasingly strict health standards. Demand for “smart” solutions, equipment, technologies (e.g. smart thermometers, building hygiene solutions and agents) is expected to increase in this area. There are serious potentials in green/renewable energy sector as well.

Hungary is a bustling business hub situated right at the very heart of Europe; physically and in historical, geographical, cultural and economic terms, all destinations are within easy reach. Hungary is an open economy and particular emphasis is placed on encouraging foreign direct investment. Forty-five of the world’s 80 largest multi – nationals, and many of their SME suppliers, have established a long-term presence in Hungary, benefiting from the highly skilled workforce, access to world-class universities, an advantageous location, qualified suppliers, and from an advanced business infrastructure. Investors do not simply regard Hungary as an ideal production location, but also as a remarkable “advanced manufacturing & innovation centre” of Europe.

Companies based in Hungary are especially strong in the automotive industry, the biotechnology and the electronics sector, the services sector, and the food and agriculture industry. Famous domestic brands include pharmaceutical company Gedeon Richter, low-cost airline Wizz Air, and brewer Dreher, but there are also up and coming technology brands based in the country, such as presentation software company Prezi and architectural software developer Graphisoft. A number of significant multinational companies − including Citi, Suzuki, Siemens, Audi, Flex, Bosch, Nestlé and Coca Cola − have established their long-term presence in the country and benefit from the highly skilled and relatively inexpensive workforce, access to top universities (both in Budapest and the rural cities), advantageous location, qualified suppliers and excellent infrastructure, including ready-made industrial sites, offices and science parks.

V. Makrigianni: As you have previously mentioned, Hungary boasts a strategic location in Europe, easy access to EU markets, a highly skilled and educated workforce, and a sound infrastructure. Greece on the other hand, stands on the crossroads of three continents steadily strengthening connectivity with global trade lanes, improving port and logistics infrastructure, and providing an excellent level of financial and business services. Do you see investment opportunities in both countries and how we could increase the economic presence?

Ambassador: In 2020, mainly due to COVID our bilateral trade in goods decreased by 2.6% to 615.4 million compared to 2019, so definitely there is space for improvements.

Political stability and business friendliness make Hungary a top investment location in Europe. Hungary’s 9% corporate tax is the lowest in the European Union. The government has also reduced the tax burden on the gross salaries paid by employers from 28.5% in 2016 to 13% in 2022. According to the data of the Hungarian Central Statistical Office, Hungary’s real GDP growth rate in 2021 was 7.1%, unemployment is at 3.8%, and the overall economic outlook remains very positive.

Thanks to its excellent geographic location, Hungary serves as the ideal hub for businesses that connects the East to the West. With its central geographical location, Hungary also offers ideal conditions for both manufacturing and service activities, providing a close proximity to a 250 million market and the opportunity to deliver global services around the clock. The Transeuropean Transport Network offers a direct transport connection between Greece and Hungary. On the other hand, a high-speed train route is under construction from Budapest, through Serbia and North Macedonia to the Greek port of Piraeus, which will also facilitate transport between the two countries.

The Hungarian economy is moving up the global value chain. There has been a shift from labor-intensive to knowledge-intensive investments which is referred to as shifting from ‘Made in Hungary’ to ‘Invented in Hungary’. In line with this, the launch of high value-added business activities is preferred with special emphasis on R&D.

As far as sectors are concerned, automotive, electronics, including battery manufacturing, and food are the top industries that attract the most FDI to Hungary. Medical technology, logistics and ICT are among additional segments that have generated significant number of FDI projects by foreign investors. Hungary has become one of the leading international hubs for the Business Services Sector in Central and Eastern Europe, where more and more complex activities are carried out, including functions like R&D, engineering, product design or software development. In addition, there is an increasing emphasis on talent management, educational collaborations and innovative solutions. Hungary puts special emphasis on E-mobility with the aim of keeping its current position among the top three countries of EV battery manufacturing in Europe.

The Hungarian Investment Promotion Agency (HIPA) provides professional management consultancy services and information packages for companies interested in investing in Hungary. As a governmental agency, HIPA is in charge of providing necessary information about the Hungarian business environment, labor market, potential location possibilities, available incentives (cash and tax form) and information about potential local suppliers. Our goal is to support strategic investment decisions by providing accurate information and relevant advice as well as mediate between the government and the business sector to ensure common success. HIPA offers a wide variety of incentives to facilitate foreign direct investments and reinvestments by the enterprises.

V. Makrigianni: What is the most important factor for doing business in your country?

Ambassador: Investor friendly business environment, highly educated labour force and competitive incentive system: these are the factors that contribute to the success of companies, operating in Hungary. The Hungarian Government has been highlighting the role of innovation and research and development to enhance productivity growth and competitiveness. Promoting higher value-added activities and R&D projects has gained a significant role in the Hungarian investment promotion policy.

Thanks to the business-friendly policies of the Hungarian government and the intensive engagement of HIPA, Hungary saw a new record-breaking investment volume of EUR 5.9 billion in 2021, which shows the unprecedented level of investor interest for the country.

HIPA’s one-stop-shop business consultancy model assisting investors in every step of the way also ensures that tailor-made client services are provided prior to and following an investment decision. HIPA gathers the information needed for decision-making, mediates between government and business, helps to identify suitable local suppliers and supports further expansion plans.

Hungarian government has created an investment friendly environment for companies wish to enter to the Hungarian market.

Key reasons to invest in Hungary:

The unique advantages of the Hungarian branch can be summarized as favourable location, in addition to being located in the heart of Europe, it has excellent infrastructure as well, thus all European countries easily accessible within 2 hours, growing economy EU accession, technically qualified and highly skilled professionals with language knowledge at a reasonable cost. Hungary is situated in the heart of Europe, which makes the country optimal for manufacturing, services and logistics.

The Hungarian corporate income tax (‘CIT’) rate is a flat rate of 9%. There is no withholding tax, based on Hungarian domestic law, on any outbound payments (including dividends, interest, royalties, management fees) made to foreign business entities. Dividend received is exempt from CIT unless it is received from a CFC. In addition, Hungary operates a participation exemption regime for capital gain taxation purposes resulting in Hungary being a favorable holding location for company groups. Furthermore, a favorable group taxation regime is available for Hungarian taxpayers operating within the same company group as from 2019. In a nutshell, by opting for group taxation, group members’ positive tax bases can be offset up to 50% by other group members’ negative tax bases (or previous group tax losses) and group members can benefit from tax incentives together.

Hungary – as a member of the European Union – has harmonized its legal system with European law. New business associations may be established in several forms; however, the most common company form is the limited liability company (Kft.). In a simplified procedure, the registration of a Hungarian company can take place in 1-2 days, and the costs of company registration in Hungary are considered low in the European Union. One of Hungary’s economic advantages is the wide range of available incentives the Government offers to increase competitiveness.

V. Makrigianni: Thank you your Excellency for this fruitful and interesting interview.

The ability to negotiate effectively is a strategic tool for companies operating internationally and can lead to positive trade agreements, beneficial partnerships and, consequently, improved financial results for a company. Knowing the appropriate negotiation techniques per target market is key to successfully entering new markets. Cultural differences such as business ethics, trust, communication styles, time management, decision-making and risk-taking, contribute to how entrepreneurs from a particular culture or country tend to negotiate.

Learn more about all the above-mentioned by attending SEV’s ExportReady Master digital workshop, titled “Negotiations in International Trade“.

Practical examples of negotiation in international trade as well as the importance of solvency accreditation will be analyzed. In addition, a number of case studies will be presented, regarding various geographical zones, by industry executives representing different export sectors. The workshop is aimed at business executives involved in international business negotiations.

Date: Tuesday, 30^th of March 2023

Time: 15.00 – 17.00 pm.

Platform: Zoom

Participants: priority to SEV members

 You may see the program here. To attend the seminar, please register here. Participation is free for SEV members. For non-members, participation will be on a first-come first-served basis. The participation link will be sent a few days before the event.

For more information, please contact the Division of International Relations and Regional Development (Ms. Dina Athanasiou, T: 211 5006 104, E: ir@sev.org.gr).

Today, Pierre Gattaz has taken office as President of BusinessEurope. CEO of Radiall and former President of the French business and employer federation Medef, he is succeeding Emma Marcegaglia. Two of his top priorities will be to increase employment and growth across Europe and to fight against protectionism. Commenting on the latest developments in international trade.

New BusinessEurope President Pierre Gattaz said: “In times of unilateral actions that undermine trade rules and the institutions that enforce them, Europe must show international leadership. We are very concerned about an escalation of measures and countermeasures that could turn into a full trade war. Open markets and rules-based trade are key to retain international leadership and support the competitiveness of European businesses.”

Talking about how Europe should respond he added: “The European Union should continue to protect its interests in line with WTO rules and power ahead with a positive trade agenda, concluding ambitious agreements with like-minded partners. By signing the EU-Japan Economic Partnership Agreement next week we show how we can work together, opening markets and modernising trading rules that benefit both companies and citizens in the EU and in Japan.”