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Military operations in eastern Ukraine forcing foreign investors cautious to invest in Ukrainian projects

Military operations in eastern Ukraine and mobilizing key personnel risk forcing foreign investors cautious to invest in Ukrainian projects. Last year it first experienced software developers for export, which had opened offices in Poland, Slovakia and other European countries to minimize risks. Now may be a blow ups, teams are usually made up of young men of military age.

After the recent statement of the General Staff of the possible restricting travel recruits from Ukraine four European investment funds refused to consider startups with Ukraine, said managing partner Denis Dovgopol BVU Group. The names of these funds will not disclose it. Two agreements are more likely to take place, he said, broke down for the same reasons. “The main value of a startup – team. She suffered a big risk because of the draft, and it took into account investors (95% of employees are conscripted startup). Now this valuable asset was limited in mobility “- he explained.

Agrees with him and investor fund TMT Investments, Chairman of the Board of the Business Incubator Happy Farm Games Shoyfot: “Unfortunately, the war itself – always a bad factor for the economy (excluding military industry). And far away at all difficult to understand that even in Kiev and Dnepropetrovsk no war, no. “Mobilization means additional risks in terms of loss of team members. “I have a few start-ups is a” – says he “Capital”. Restrictions on travel increases these risks. For investors investing in Ukraine to earn by selling startup. And buyers almost always in America. If team members can not come to the US, it is a huge disadvantage and additional risk. “On the other hand, as a man who served two years in the army, I believe that it is the duty and honor for every man – to defend their country with arms,” – he said.

Although no restrictions on the movement does not work (the parliament has yet to develop an appropriate base), itself a statement of intent was the wake-up call for investors. “The negative impact of war on the fact attitude of investors in Ukraine, of course, compounded by careless statements such as restricting travel abroad, which, fortunately, has not yet confirmed” – adds Project Director Nicholas Palienko.

According to long-skirted, the prospect of such restrictions is already forcing entrepreneurs do not think and act towards immigration. Even those who went to fight if called. According to the executive director of the Association «IT Ukraine” Victor Valeev, now many Ukrainian companies create offices abroad – required by customers. “International information policy Ukraine is very weak. Abroad, they see only what we war and political problems, “- he said. Small companies and startups sometimes move the whole team. For example, late last year all office moved to Montenegro Kharkiv development company. Although the reasons for moving the company did not name.

Stop mass outflow companies abroad can be achieved by implementing reforms, deregulation, protection of private property and resolving the issue of the war in the east, sure Palienko. As for mobilization, the risks to IT and other sectors of the economy could be solved by providing a formal opportunity not serve for the money. These funds can be aimed at increasing the attractiveness of military service by increasing pay and health and life insurance troops. “In any war is the economy, and take highly paid professionals to serve when there are hundreds of thousands of unemployed economically feasible” – sums up the source publication.

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