One day the war in Ukraine will stop, and many companies will be looking to either enter or return to the country. But what compliance challenges might they face?
In tis podcast Eric Hontz, Director-Center for Accountable Investment at the Center for International Private Enterprise (CIPE) shares that business may be pleasantly surprised when they return. Despite the war the government has been functioning on multiple fronts and has continued to pass reform bills. They are particularly focused on EU-related reforms as a candidate for membership.
In addition, a great deal of government power has moved outward from the central government to mayors and regional governments, enabling greater transparency into how funds are being used.
All of this has made the corruption risk in the country less.
When doing business in the country, Eric recommends enlisting civil society groups as an ally. There are a large number of progressive business groups, he reports, working to stem corruption and encourage innovation. The success of their efforts can be seen in the many technology companies across the country.
After the war ends, he expects the country to continue its trajectory away from corruption. There is a growing consensus that corruption weakens the country, and he expects returning soldiers to have far less sympathy for it.
As for Russian sanctions, he does not see much risk when doing business in Ukraine. Outflows of investment by Russians began long before the war.
Listen in to learn more about what to expect when the day comes that your organization begins working in Ukraine.