Mykola Siutkin, CEO and founder of S&P Investment Risk Management Agency on why the flow of foreign investments has not yet flooded the country with such a rich potential and on the peculiarities of doing business in Ukraine.
S&P specializes in creating complex solutions for the business protection sphere. Mykola Siutkin shares his experience with Boryspil magazine and insists that only integrated approach can be effective in protecting business interests.
Doing Business ranked Ukraine 76th in 2017. What is your forecast for the FDI growth in 2018?
M. Siutkin: A positive change in ratings means that Ukraine can easily become visible. Investors approve decisions after analyzing the business environment and risks. Ratings can’t force an investor to come to a country where business is suffering from raiding and state authorities’ illegal actions. It is essential that the state image be shaped and that examples of successful investments be shown while creating clear business conditions for foreign investors.
What risks do foreign investors take in Ukraine? Can they avoid those risks?
M. Siutkin: Loss of investments and/or assets is a risk. The second essential point includes conflicts with Ukrainian partners, which can lead to loss of assets and/or business. The third critical group of risks includes conflicts with the state authorities. Risk issues are deep enough, we even have a training for CEOs on avoiding or minimizing risks.
Which tools for protecting investors are effective?
M. Siutkin: We use GR, PR, Crisis Communications, Crisis Management, Coaching, Mentoring, Management and Legal Instruments while protecting business. They are matched according to the task complexity. It is a multi-level process developed for each case individually. The legislation provides enough tools for protection, the point is the ability to use them properly.
What would you recommend an investor who starts a business in Ukraine?
M. Siutkin: I would recommend acting legally, regardless of imposing ways of cheating by anyone. There are many successful entrepreneurship examples in our country – honest, transparent and legal. Such a strategy is more rational from the financial point of view.
What would you recommend investors regarding building partnerships?
M. Siutkin: A partnership is successful only in case of creating a proper system of checks and balances, which will restrict agreements violations by one of partners. Having a reasonable approach to building partnerships is the key to minimizing corporate and/or raider conflicts. According to our analytics, mistakes of partnerships formalizing are main causes of losing assets in 95% of cases.