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The Coronavirus Pandemic Effect On The Global Supply Chain And Ukraine

Posted by: Gherson Immigration

The Coronavirus pandemic has exposed vulnerabilities in global supply chains. Businesses around the world have experienced trade restrictions, delays in contractual obligations and shortages of critical supplies such as medical materials. Many countries around the world are seeking to come up with ways to bolster their economies. Ukraine, for example, is hoping the pandemic will transform global supply chains in ways that will allow it to lure investments away from Asia and into Ukraine’s own economy.

Ukraine benefits from its geographical location between Asia and the European Union, making it an ideal location for European investors to avoid long term supply chains. Ukraine’s government has also sought to make the country a desirable destination for investors and is providing incentives. Certain benefits are being granted to investors who commit more than 20 million euros, for example. Last year, UkraineInvest (an independent advisory body with a mandate to attract and support foreign direct investment) secured more than $600 million of investments.

Ukraine’s potential is undoubtedly becoming known to the wider international community. Currently, Ukraine has $1.1 billion invested in mining and processing capabilities by Canada’s Black Iron Inc. Belgian mattress-fabric maker Monks International and Danish furniture producer Hjort Knudsen are also building plants in Ukraine.

Other countries will no doubt follow Ukraine’s example in offering incentives to invest in their economies and industrial infrastructure.

The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.

©Gherson 2021

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