Ukrainian market

Security industry infrastructure

In Ukraine, the security industry infrastructure embraces trade associations, exhibitions, forums and core media. Trade associations considered the most influential are:

Ukrainian Union Fire and Technological Safety (UUFTS)
Ukrainian Security Industry Federation (USIF)
Ukrainian Federation of Security Specialists (UFSS)
Ukrainian Federation of Professional Security (UFPS)
Ukrainian League of Industrialists and Entrepreneurs (ULIE)

Altogether there are about 30 regional and national public organizations in the security industry of Ukraine. For the past 15 years the country's biggest exhibition has been the 'Bezpeka' ('Security') event. But this year a new show, KIPS – Protection, Security & Fire Safety was inaugurated in Kiev (organized by the UK's ITE Group Plc).

One annual forum that has been running for six years is 'Live issues of fire and technological security in Ukraine; International Yalta conference’. It is traditionally held at the beginning of October in Crimea and organized by UUFTS in cooperation with the Ministry of Emergencies.

The most influential Ukrainian security industry media include the magazines SECURITY.UA and F+S: fire prevention and security technologies. SECURITY.UA magazine is a part of the information and publishing group of the same name, which also includes SECURITY.UA Information agency, Construction and security magazine and their E-release email digest.

The Ukrainian Market

In 2009 the European Bank for Reconstruction & Development (EBRD) focused on implementing an extensive crisis management programme in Ukraine, delivering prompt, targeted and high-quality support to the Ukrainian economy, which was severely affected by the global downturn. The Bank also continued efforts to promote the sustainable and efficient use of energy in Ukraine, one of the least energy-efficient countries in the region.

Last year the EBRD invested €1.1 billion in Ukraine — more than it has invested in the country in any previous year — and signed 42 projects. More than half of these (57 per cent) were signed in the banking sector as the Bank moved to restore market confidence and the stability of the Ukrainian financial system.

The EBRD provided a US$ 134.5 million loan to Ukreximbank, one of the largest banks in the country, to help stabilise its operations and promote lending to the real economy. The deal constituted the first syndicated transaction in Ukraine’s banking sector since the beginning of the financial crisis.

The Bank closed one of the largest-ever equity deals in Ukraine by agreeing to acquire a stake worth up to US$ 50 million in OJSC Galnaftogaz, which operates Ukraine’s leading petrol-station chain OKKO. As well as strengthening the company’s balance sheet and cash flow position, the transaction was aimed at mitigating the consequences of the crisis and local currency devaluation and promoting energy efficiency measures.

The EBRD extended a US$ 62.5 million loan to the State Administration for Railway Transport of Ukraine (UZ) to finance the purchase of freight wagons for a programme to renew rolling stock. With this project, the Bank has now committed almost US$ 240 million to the Ukrainian railway sector since 1999.

In addition, the Bank mobilised Technical Cooperation funds to help the Ukrainian authorities set up a restructuring programme for banks. Policy dialogue involving other international financial institutions, meanwhile, focused on what role the EBRD can play in stabilising the Ukrainian financial sector. The Bank also continued promoting the development of a long-term hyrvnia market and agreed on a Sustainable Energy Action Plan with theUkrainian government.

Economic overview

The Ukraine economy has suffered from the decline of the global demand and commodity prices, financial sector de-leveraging, and increases in the imported gas prices to the levels prevalent in the international markets. The authorities responded by adopting a comprehensive policy response package, supported by the International Monetary Fund (IMF) and other international financial institutions. The macroeconomic situation in Ukraine stabilised and investor confidence improved after the formation of a new government in early-2010.

In the near term, it is important to begin much-needed fiscal adjustment and complete stabilisation of the banking sector. Over the medium term, economic growth will largely depend on the external demand as well as the authorities’ ability to stimulate investment and pursue deep structural reform.

Flagship reforms and investments in the energy sector are essential, and may be supported by the international financial institutions. Ukraine also requires substantial investment to upgrade its ailing infrastructure. This can be achieved through better budget planning, improved procurement procedures and project implementation, as well as a clearer legal framework for public-private partnerships.

For a full Ukraine Economy overview, please download the report provided by EBRD by clicking here.

Source: EBRD