Ukraine: Business Environment
New Year | January 1st |
Orthodox Christmas | January 7th |
Day of International Solidarity of Workers | May 1st |
Day of International Solidarity of Workers. | May 2nd |
Victory Day. | May 5th. |
Day of the Holy Trinity | May 30th |
Holy Trinity. | June 7th. |
Constitution Day | June 28th. |
Independence Day. | August 24th. |
If a public holiday falls on a Thursday, then it is possible to have an extended weekend: the Friday could be a day off.
New year's vacation | from December 31st to January 8th (sometimes 14th). |
Summer vacation | Generally July or August depending on the company. |
Most Ukrainian firms have a traditional organisational structure and hierarchies are clearly defined with several mid-level managers. Subordinates were traditionally not expected to come up with ideas or give their feedback. Ideas were generated by the manager or their immediate subordinates, and presented by the most senior person. Consequently, some mid- or low-level Ukrainian professionals may be reluctant to engage in negotiations or share their opinion. Nevertheless, decision-making process is changing slowly in multi-national firms that have adopted a more Western approach, with subordinates being encouraged to give feedback.
Ukrainians tend to have a rather cautious approach when engaging in business with foreigners and seek business associates that they can trust and with whom they can work on long-term projects. Ukrainians like to do business with people they know well and can sometimes prefer their acquaintance over recommendations. It is important to present oneself as as a trustworthy person and get to know the Ukrainian counterpart through small talk and business entertainment activities.
It is important to remain patient as negotiations tend to be lengthy and cumbersome. Ukrainians would like to see data that prove the trustworthiness of the foreign company. On the other hand, they treat even basic data as confidential (number of staff, turnover, etc.) and may be reluctant to give too much information about their own company until a certain level of trust has been reached. The information can be difficult to get on the phone but can be obtained at a meeting when a link is established. The government plays an important role in business and it is important both for Ukrainian and foreign companies to know people in governing bodies.
The level of relationship determines the way Ukrainians communicate with their foreign counterparts. They are most likely to remain cautious and indirect at the initial stages of the relationship; however, they prefer a quite direct approach in later stages of negotiations. Nevertheless, it is advisable to remain calm and courteous both during first meetings and later on. Ukrainians may want to sign a memorandum of understanding at the end of meetings. Even if this is not a legally binding document, it is still regarded as an important part of the partnership process.
Business entertaining is an important part of the negotiation process. Toasts, drinking and dinners are the most common type of interactions with Ukrainians outside of the office. Negotiations may continue over meals; however, it is better to take cues from the Ukrainian counterpart in this regard. Ukrainians also tend to hold business meetings with a meal at their home more often than in Western Europe.
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Latest Update: November 2024