• • On October 13, the S&P Investment Risk Management Agency office hosted another closed meeting of diplomatic representatives from the Embassy of Switzerland in Ukraine and executives of the largest Swiss companies operating in the country.

    As part of the Swiss Business Meeting, business leaders discussed the specifics of doing business in Ukraine, investment protection, Swiss values of reliability, and their potential application in Ukraine.

    Opening the meeting, the Ambassador of Switzerland to Ukraine, Mr. Guillaume Scheurer, emphasized the importance of creating such platforms for the Swiss business community to discuss cases and practical aspects of operating in Ukraine. He highlighted a successful example of collaboration between a local investment risk assessment company, the Business Ombudsman’s Office, and the Swiss Embassy in protecting the interests of a foreign investor in a conflict with the state. This referred to a recent case involving the Swiss company Risoil.

The Business Ombudsman of Ukraine, Algirdas Šemeta, was also present at the meeting. He spoke about the UNIC (Ukrainian Network of Integrity and Compliance) initiative, which was launched in May of this year.

This initiative is aimed at companies that operate based on transparency, honesty, and openness, thereby promoting the development of responsible business practices in Ukraine.

Natalia Osadcha, co-founder of S&P Investment Risk Management Agency, addressed Swiss business leaders, explaining the reasons behind conflicts with the state, how to identify them, approach conflict resolution correctly, and ultimately emerge victorious. She also shared strategies for minimizing risks when doing business in Ukraine.

In particular, Natalia Osadcha highlighted key mistakes entrepreneurs make when facing a conflict situation, which could lead to the loss of assets and business:

• Failure to implement preventive measures
• Management errors, which cause conflicts in 80% of cases
• Ignoring the conflict
• Misidentification of the conflict situation
• Incorrect risk assessment and the wrong choice of tools (PR, government relations, crisis communication, legal strategy, business protection, etc.)

S&P Investment Risk Management Agency expresses gratitude to the Ambassador of Switzerland to Ukraine, Mr. Guillaume Scheurer, for facilitating the organization of this exclusive meeting. We also thank the owners and CEOs of Swiss companies operating in Ukraine for sharing their real-life experiences of doing business in the country “without censorship.”

The founders of S&P Investment Risk Management Agency, Mykola Siutkin and Nataliia Osadcha, participated as speakers at the most creative business event of the year, Business Wisdom Summit 2017.

In their speech, they addressed the question of whether Ukrainian business can transition from a “toxic” and corrupt environment to building a new ecosystem in Ukraine.

Deeply ingrained behavioral models prevent Ukrainian entrepreneurs from building an ideal business and interacting effectively with government structures, believes Mykola Syutkin.

“Unfortunately, a businessman in Ukraine never knows what will happen to him tomorrow. He constantly has to negotiate with someone, wait for something, and fear for his assets.”

At the same time, Nataliia Osadcha emphasized that here in Ukraine, there is a parallel world where foreign companies operate strictly within the legal framework, using entirely lawful methods to defend their rights.

Why does it work for them but not for businesses with a “Ukrainian face”? The reason lies solely in mental perception and the willingness of businesses to play by the rules themselves. These are the rules established at the legislative and legal levels—rules that work both ways: for businesses and against those who unlawfully abuse their power. These are the rules that, once followed, allow businesses to grow rather than merely survive.

According to the founders of S&P Investment Risk Management Agency, the transition from a toxic environment to a healthy ecosystem in Ukraine is possible. The number one rule for Ukrainian businesses in this regard is to fully utilize the mechanisms and tools provided by the current legislation.

Together with its clients, S&P Investment Risk Management Agency is shaping a new, non-toxic essence of business-government relations.

“By using the same tools within the existing legal framework, we are building a completely different, sustainable world. In this world, legislation works, business sets its own rules of the game, feels protected, and gains subjectivity in its interaction with the state. Hence, rule number two – make an internal decision about which world I choose to live in. This is purely a matter of our choice,” concluded Nikolay Syutkin in his speech.

Mykola Siutkin, Founder and CEO of S&P Investment Risk Management Agency. Published exclusively for Novoye Vremya.

How Ukrainian Business Can Change the Country by Starting with Itself

For more than 20 years, modern Ukrainian business has been operating under rules established long before its emergence. How did corruption begin? Initially, entrepreneurs sought quick solutions to various issues and convinced officials to make minor violations or so-called “concessions.” Officials agreed, and the issues were resolved. Over time, business demands evolved into “I want this today,” leading to an increase in “rates” among officials. Eventually, it became nearly impossible to conduct business-government relations without corruption. Officials began setting “price lists,” turning the bureaucratic system into a commercial structure dictating how much a business must pay and for what. The most striking part? Businesses continue to pay.

This system of state-business relations has become the norm in Ukraine. What once began as a businessperson’s way of thanking an official for a favorable deal has now become an expected payment at the highest levels of power. The businesses that originally established these corrupt practices 20 years ago no longer exist, but their rules remain. When new entrepreneurs or officials enter the system, they simply follow the established playbook. The Ukrainian paradox is that those who created the system are gone, yet the system still thrives.

Two Perspectives on the Same Reality

Analyzing the essence of Ukrainian business presents two contrasting perspectives.

The first is the familiar narrative of complaints about a dysfunctional state, corruption, flawed legislation, and the challenges of dealing with government agencies. Companies that were established many years ago—when Ukraine was still in its formative years—continue to operate under the old system. They conduct business according to the familiar corrupt rules, where one side continues to offer bribes and the other continues to demand them, unable to imagine an alternative.

Fortunately, alongside this outdated system, a different reality is emerging—one where things, though imperfect, are beginning to function properly. In this world, businesses utilize the legal framework to its fullest potential, and corruption is absent simply because companies refuse to play by unlawful rules. This marks the rise of a new ecosystem—one driven by a different mindset and behavior, with a growing number of both local and foreign investors choosing to operate within it.

The Same Tools – Radically Different Results

Let me give you an example. A foreign company approached us with a request to develop a legal strategy using the mechanisms of Ukrainian legislation to recover over 300 million UAH in VAT refunds as quickly as possible. Within three weeks, the task was completed, and the client received the full amount in their account. We demonstrated in practice that by operating strictly within the legal framework and utilizing the mechanisms available under Ukrainian law today, it is possible to achieve maximum results in the shortest time. And all of this was done using the very legal system that many claim does not work in our country. The real question is: who has actually tried?

Together with our clients, we are helping to shape a new, “non-toxic” business environment in Ukraine. Put simply, while using the same tools, we are building an entirely different and sustainable ecosystem.

It’s important to emphasize that this is entirely a matter of choice—businesses themselves decide which system they want to exist in. It takes courage to step out of the familiar way of doing things, to stop playing by the old rules, and to create a demand for real change—a transition from the corrupt world everyone is used to into a new, sustainable system.

Navigating the Rapids of Ukrainian Business

This applies to Ukrainian companies. But there is another category—foreign investors—who are accustomed to operating in an ethical business environment. They come to Ukraine unaware that there is a system in which they are expected to “pay to play.” And believe me, they want to build the same transparent and ethical environment for themselves here in Ukraine. Our role is to show, through practical examples, that such a “non-toxic” ecosystem can exist in our country just as it does elsewhere.

Throughout history, there have always been pioneers—bold individuals who discovered new routes, jumped into boats first, and grabbed their paddles to navigate the wild rapids before anyone else. Imagine the thrill they must have felt! Business works the same way. Ukraine is a vast territory full of potential and opportunities. The pioneering foreign companies that enter the Ukrainian market—despite corruption, imperfect legislation, and difficult government relations—are not only capable of predicting demand and taking risks, but they also find excitement and satisfaction in what they are building here. It’s comparable to the adrenaline rush of a newcomer plunging into a powerful mountain river—thrilling yet dangerous.

However, history shows that most newcomers who rely solely on luck and lack proper preparation end up failing. I firmly believe that to avoid this, one needs a guide—a mentor who identifies risks, provides warnings, offers direction, and gives expert advice. Think of it like a local rafting instructor who teaches a beginner how to navigate the river safely and actually enjoy the ride.

In business terms, successfully navigating the “wild mountain river” of the Ukrainian market requires deep knowledge of the terrain. With an understanding of local nuances, an experienced guide, and the courage to take the plunge, businesses can not only enter and thrive in a new emerging market but also actively contribute to transforming the country’s business ecosystem. And that is the ultimate success.

Every year the International Conference gathers a large number of representatives of the public sector, business and social organizations.

This year, “The Tiger Conference” gathered more than 350 participants from around the world, 24 speaker among them.

Among the key issues on which the discussions took place, stood out the issues of transparency of legislation and separation of powers of the government. During the discussion of economic topics in Ukraine, the speakers drew attention to the importance of the fight against corruption and the shadow economy. Participants talked about the problems of energy and subsidized prices for electricity and came to the conclusion that Ukraine must ensure such pricing, which would stimulate production and efficiency. In matters of leadership agreed on the fact that government leaders need to focus their efforts on the creation of unity and common vision of the future.

S&P Investment Risk Management Agency with the support of which the conference was held, emphasize the importance of such an event which helps to coordinate and integrate the efforts of the representatives of different branches of government and business at solving of current economic and legal issues in Ukraine.

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The project has been developed during this year by thirteen leading law firms on a pro-bono basis under the auspices of U.S.-Ukraine Business Council (USUBC).

S&P Investment Risk Management Agency is one of the project’s co-authors.

On October 30th, 2015 at the second conference of the American-Ukrainian Business Council, about 100 representatives of the legal, business and diplomatic community, civil society, academia, the Government, the National Bank and the Presidential Administration of Ukraine gathered to discuss the proposed reforms.

The conference highlights included keynote speeches from the U.S. Ambassador Pyatt.

The mission of the project: the modernization of the existing legal system – replacing it with a brand new, modern, fair, civilized and service-based legal and governance system.