KYIV, 2 June 2023 – In today's challenging Ukrainian business environment, entrepreneurs often need to relocate from areas heavily impacted by the war or expand their businesses to new regions to minimize possible risks. While expanding into new regions can bring growth opportunities, entrepreneurs often encounter various challenges along the way. Identifying suitable regions, adapting to local regulations and practices, managing logistical complexities, and setting new contact network are a few of these obstacles to overcome.

To address these growing needs, the Chamber of Commerce and Industry of Ukraine, supported by UNDP Ukraine and GIZ Ukraine, recently launched an innovative and timely new service “Geographical diversification and business adaptation,” funded by the Government of Germany.

Mykhailo Nepran, vice president of the Chamber of Commerce of Ukraine and Industry, said the new service provides entrepreneurs with individually-tailored business support from qualified expert consultants affiliated with regional Chambers of Commerce and Industry. “Since the war escalation in 2022, hundreds of enterprises have had to relocate to other regions or diversify their locations to minimize risks,” he said. “Our new service was initially designed to support enterprises through this path and make sure they adapt the best way possible to new markets. We have recently seen an increased demand not only for business adaptation but for ‘delocation,’ which refers to the return of businesses to heavily affected regions such as Kharkiv and Zaporizhzhia.”

Christophoros Politis, UNDP Deputy Resident Representative in Ukraine, said the new service for geographical diversification and business adaptation will be an invaluable resource for enterprises facing challenging decision of geographical diversification. “Ukrainian businesses are the pillar of the country’s economy and the backbone of its society,” he said. “Through practical support and expert consultation, our collaboration enables them to adapt, discover new markets, and rebuild operations. This aligns with UNDP`s vision of empowering communities, fostering economic resilience, and promoting inclusive development.”

The effectiveness of this project has been proven by the positive feedback received from 18 participating companies in the pilot phase, which successfully relocated or adapted their businesses in Volyn, Vinnytsia, and Lviv regions. 

The development and provision of this service are carried out with the support of the Government of Germany under the UNDP project “Supporting inclusive economic development in Ukraine by coordinating the export strategy with regional development and SDG” in cooperation with the German federal organization “Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) GmbH)” through the international cooperation programme “ReACT4UA (Use and implementation of the EU-Ukraine Trade Association Agreement)/EU4Business: recovery, competitiveness, and internationalization of SMEs.”

Media inquiries

Yuliia Samus, UNDP Ukraine Communications Team Leader, yuliia.samus@undp.org