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“Why it is so hard to attract a foreign capital into Ukrainian companies” – an opinion of the expert, the director international capital markets of ALTERA FINANCE Investment Group Maxim Shinkarenko.

Jul 12, 2010      

Nowadays, a common problem of many Ukrainian companies, trying to attract a foreign capital is the absence of a clearly articulated and sound business development strategy. Many Ukrainian businessmen think “we must first have the money, and then decide what to do with them”. Such an approach is unacceptable for a foreign investor.

Ukrainian business owners often have overrated expectations regarding their company cost. Since they operate, first of all, with production activity rates, while their profit performances and business efficiency financial ratios leave much to be desired. 

Also the quality of management is very important. Many Ukrainian owners are not ready to let financial investors in their business because of the persistent raider attacks and their legal vulnerability. For many Ukrainian companies finance indicators decline in the year 2009 and this year is a serious problem, brought by crisis. At the same time, the situation is complicated by the companies’ dollar activities decline compared to the period before the crisis which was caused by a serious UAH devaluation.

All these problems complicate the process of the funds attraction into a company considerably. However, foreign investors are still ready to consider the prospects of business development in Ukraine. In their turn, more and more Ukrainian companies’ owners, seeking to improve the cost-effectiveness of their resources management, turn to professional financial consultants.