International Affairs
From April 22nd to 27th, the Chamber of Commerce of the Grand Duchy of Luxembourg, in close collaboration with AWEX (the Walloon Export and Foreign Investment Agency, organized a trade mission to Ukraine. The commercial delegation, led by the Chamber of Commerce, was composed of 12 companies with a total of 19 company representatives from a variety of sectors. The official brochure of the trade mission can be downloaded below.
The aim of this mission was to explore possible future economic cooperation and business opportunities in a variety of sectors, development and innovation. The trade mission to Ukraine granted a great opportunity for Luxembourg companies to establish new business links and get in touch with local key partners they can turn to in order to get assistance and advice regarding access to this region.
The joint Trade Mission started in Kiev, before parts of the delegation continued to Dnipro and Zaporizhzhia. The participating companies had the opportunity to take part in tailor-made business-to-business meetings with local companies as well as a number of networking events in all locations. The companies were able to choose whether they participated solely in Kiev (the nerve center of the country's economy) or in the entirety of the mission including Dnipro and Zaporizhzhia (major industrial centers of Ukraine located about 500km southeast of Kiev on the right bank of the Dnieper with a long history in sectors such as metallurgy, automotive, machinery and agricultural equipment, chemistry and textile).
The first day began with an information seminar on ‘how to do business in Ukraine’ held by a local law firm. The speaker focused on the main commercial sectors (IT, Energy, logistics) and presented the investment opportunities as well as the legal framework – including tax and labor law (for example: income tax on independent IT consultants/specialists is as low as 5%). The comprehensive presentation prepared a delegation out of which some explored the Ukrainian market for the first time, before they started their business-to-business programs. The first day was concluded with a networking reception cohosted by the Luxembourg Chamber of Commerce, the Embassy of Luxembourg to Ukraine and the Embassy of Belgium in Kiev. The Luxembourgish Ambassador, H.E.M. Gérard Philipps as well as the Director International Affairs of the Luxembourg Chamber of Commerce, Mr. Jeannot Erpelding, opened the event with speeches addressing the good relations between both countries. The Honorary Consul of Luxembourg to Ukraine, Mr. Nikolai Mikhailovich Novikov participated in every event and offered his personal support to each company based in Luxembourg. After a second day of business-to-business meetings in Kiev, parts of the delegation continued to Dnipro and Zaporizhzhia, where, in collaboration with the local Chambers of Commerce, the prospective meeting resumed until Friday 27th of April, when the delegation returned to Luxembourg.
According to the STATEC, Luxembourg’s exports to Ukraine have almost doubled since the commercial slowdown of 2015. Ukraine is a country which, after the 2014 Euromaidan Revolution, embarked on an ambitious process of economic reforms. The free trade agreement signed between Ukraine and the European Union, which entered into force on the 1st of January 2016, strengthens the economic ties between Ukraine and the EU and, in particular, lifts a large majority of customs barriers. Furthermore, the Double Tax Treaty between Luxembourg and the Ukraine has entered into force on January 1st this year.
All along this five day mission, various meetings with key local partners confirmed the great potential for exchange and common business development between companies from Luxembourg and Ukraine. Hence, the basis for a stronger future collaboration has been established and will be pursued. AWEX (the Walloon Export and Foreign Investment Agency) has a permanent office in Kiev that offers support to Belgian and Luxembourg based companies.
