UNGC Ukraine held an event “From Principles to Action: on the Way to the Ukraine Recovery Conference 2023”

15.06.2023

The destruction of Ukrainian cities and the flooding entire districts are the consequences of Russia’s military aggression in Ukraine. The country needs a quick recovery and a long-term strategy for sustainable reconstruction. The topic of rebuilding Ukraine is becoming increasingly relevant, so it is the focus of the UN Global Compact Network Ukraine.

On June 13, on the eve of the international Ukraine Recovery Conference, the UN Global Compact Ukraine held a high-level event “From Principles to Action: on the Way to the Ukraine Recovery Conference 2023”. This event brought together leaders and stakeholders of the Ukrainian business community to identify key challenges and opportunities for Ukraine’s economic recovery and growth in the post-war period.

The UN Global Compact Ukraine becomes a home for the Ukraine Business Compact 2023. The aim of this Compact is to re-enforce the business community’s support for peace in Ukraine and to set out mutual expectations for the success of the recovery efforts. It is initiated by the Ukraine Recovery Conference. The official presentation of the Ukraine Business Compact and the publication of the list of companies that have signed them will take place on June 21-22 in London at the Ukraine Recovery Conference.

This Compact was supposed to be signed only by international companies that would be investors in Ukraine’s recovery. However, the UN Global Compact Ukraine has made great efforts to ensure that Ukrainian companies are also involved in signing them. This was stated by Tetiana Sakharuk, Executive Director of the UN Global Compact Network Ukraine, in her opening remarks:

“Today, we have gathered with sustainable businesses in Ukraine to create an ecosystem for rebuilding the country. And the ecosystem is a partnership of different businesses, support for each other, a partnership with the state, which hears the business and connects it to the issues of recovery. It is also the public sector that drives change. The public sector and businesses convinced British representatives of the importance of Ukraine joining the Ukraine Business Compact. And now Ukrainian business is becoming the basis and support for attracting international investment to Ukraine.”

Build Back Better: Prerequisites for Business Participation in the Effective Reconstruction of Ukraine

Sustainability should be at the heart of Ukraine’s reconstruction. That is why the first panel discussion of our event was dedicated to the effective reconstruction of Ukraine in accordance with ESG principles and international standards. The discussion was moderated by Marianna Rozumna, Director of Compliance and Legal Support at Datagroup.

Hlib Bakalov, Chief Compliance Officer of NPC UKRENERGO, emphasized the importance of compliance for building trust in the company:

“If you are going to work on compliance in the company, you must first create a code of ethics for employees and set the “tone from the top.” It shows the management’s intention to work on the company’s integrity. Also, to protect against corruption risks, it is necessary to create anonymous hotlines for employees. The last thing is constant work on compliance risk assessment, which will show weaknesses and allow some risks to be avoided.”

Natalia Sydoruk, GR Director of Interpipe, shared her thoughts on attracting investment to Ukraine:

“Unfortunately, it seems that it may be easier for foreign companies to work in Ukraine than for Ukrainian ones. Therefore, Ukrainian business should be the focus of all initiatives to restore Ukraine. It should include the restoration of destroyed businesses and the expansion of the market for them.”

Nadiia Omelchenko, Vice President of IT-Integrator, and Founder of Militek, emphasized the resilience of Ukrainian business:

“We are a powerful system integrator, and we see how our clients, the most powerful Ukrainian companies, operate. The Ukrainian economy is in a difficult state. But we all show amazing resilience. Businesses working on long-term infrastructure projects are already building partnerships with the government and attracting donor support.”

Victoria Yarmoshchuk, CEO of FILM.UA Group, shared the challenges and opportunities for the film industry in this difficult time:

“The Ukrainian film industry has faced the biggest challenges: the war, the economic crisis, and the outflow of specialists abroad. Many filmmakers changed their profession and joined the Armed Forces. All this created unprecedented difficulties. On the other hand, it was a test of strength. 2023 proved that the Ukrainian film industry is developing. This year, the share of Ukrainian films at the national box office reached a remarkable 30 percent. I believe creative industries and content production should be included in Ukraine’s reconstruction.”

After the discussion, Ukrainian companies signed the Ukraine Business Compact 2023.

The Compact was signed by:

Marianna Rozumna, Head of Legal and Compliance Department, Datagroup;
Victoria Yarmoshchuk, CEO, FILM.UA Group;
Natalia Sydoruk, GR Director, of Interpipe;
Nadiia Omelchenko, Vice President of IT Integrator, Founder of Militek;
Yevhen Liashchenko, Chairman of the Board of JSC Ukrainian Railway;
Alex Lissitsa, CEO of IMC;
Kyrylo Bondar, Partner, Financial Director of UNIT.City;
Yaroslavna Blonska, Marketing Director of FERREXPO PLC;
Tetiana Andrianova, CEO of Octava Capital; and
the following companies: MHP, Epicentr K, Astarta, Atmosfera, Arzinger, Task Force Group, NPC UKRENERGO, Gas Transmission System Operator of Ukraine, ZEZMAN Holding, Metinvest, Caparol Ukraine, AC Crowe Ukraine, ETERNA LAW, EVERLEGAL, Asters, AEQUO Law Firm, Auchan, State Enterprise “INFOTECH,” Baker Tilly in Ukraine, Sayenko Kharenko, Energy Trade Group, Carlsberg Ukraine, KNESS and Moneyveo.

Investing in a Better Future: Transparency, Prospects, and Business Success

The panel discussion “Investing in a Better Future: Transparency, Prospects, and Business Success” was focused on investment transparency and the investment landscape at the local level. Helena Potopalska, Managing Partner of AC Crowe Ukraine, moderated it.

Yevhen Liashchenko, Chairman of the Board of JSC Ukrainian Railway, emphasized the work being done by JSC Ukrainian Railway to restore the infrastructure:

“We are rebuilding the infrastructure destroyed by Russians and, despite the war, continue to invest in railway development. We share and support the principles set out by the UN Global Compact and will continue to work to ensure that JSC Ukrainian Railway remains a key driver of the economy and meets the needs of the country’s economy.”

Dmytro Tanko, Acting Director of Retail Trade of Epicentr K, said:

“Despite significant losses, Epicenter K opened two new shopping centers in Kyiv and Lviv and renovated two existing ones, with total investments amounting to almost UAH 7 billion. Today we are building a new shopping center in Bucha, which was destroyed during the Russian occupation of the city. The company’s plans generally include investments in retail development, logistics, the agricultural sector, and manufacturing.”

In the face of attacks on infrastructure, Ukrainian businesses continue to work on developing renewable energy sources. Oleksandr Selyshchev, CEO of DTEK Renewables, explained:

“Despite the difficult and unpredictable conditions, a year ago, DTEK Renewables decided to complete the construction of the Tiligul wind farm, as we understood the high demand for new energy capacities. The first stage has already been commissioned with a capacity of 114 MW and generates enough electricity to cover the annual needs of 200 thousand households. The war and enemy attacks on the energy infrastructure have revealed the centralized energy system’s problems, shortcomings, and weaknesses.”

The IT sector is important in keeping the country’s economy moving. Anastasia Frolova, Vice President, Ukraine Country Manager of SoftServe Ukraine, told about the company’s activities during the war:

“We are showing our customers from all over the world that despite the shelling and power outages, we can fulfill our obligations. In addition, we are expanding our social projects. As a socially responsible company, we have paid taxes a year in advance and hope this has helped our country’s economy. We have directed many efforts and funds to charity through our charitable foundation.”

Dmytro Zozulya, M&A Advisor to CEO of MHP, shares his advice for businesses to attract investment:

“We continue the path of transformation and investment; this year, investments have been strengthened externally. Today, I advise businesses to study corporate governance and large businesses to build institutions. Because investment money will go where these institutions are already in place.”

Our high-level event concluded with an expert discussion on Ukraine’s economic development prospects in light of the current situation, moderated by Tetiana Sakharuk, Executive Director of the UNGC Ukraine.

Olexandr Rodnyansky, Presidential Advisor (Ukraine), Supervisory Board Member at State Savings Bank of Ukraine, Assistant Professor of Economics (Cambridge), emphasized:

“Speaking of challenges, it is important to think about structural and institutional reforms that will create the foundation for Ukraine’s economic growth. Private sector participation is important for recovery and will be dominant.”

Alex Lissitsa, CEO of the IMC and UNGC Ukraine’s Economic Ambassador, said:

“Today, it is difficult to say exactly how much money we will need for recovery, and it is also unclear in what format this money will come. However, if we start systemic reforms and move towards the EU, it is obvious that investments will be available to us in the short term.”

Kyrylo Bondar, Partner, Financial Director of UNIT.City, shared an optimistic view of the opportunities open to Ukraine:

“Now we have a unique chance to create something new, not just to recover at the level we had before. To do this, the following key elements of the ecosystem must be in place: a changing state, people who want to develop their country, Ukrainian business, the market, and international partners who can teach us and pass on culture and values. The ecosystem can be considered complete when all these elements are present.”