Global Markets

Mayrik have established security and commercial partners in many countries where cultural and business etiquette is critical to the development and success of business deal's, in order to help our clients progress their business opportunities we would like to share the information below with you, please click on the map points highlighted for an insight into the business etiquette of the countries we and our partners, have experience in.

Mayrik, helping our clients by understanding the differences and bridging the gaps

Ukraine

Introduction

Ukraine, country in eastern Europe, and the second largest country in Europe after Russia. Ukraine is bordered on the west by Poland, Slovakia, and Hungary; on the southwest by Romania and Moldova; on the south by the Black Sea and Sea of Azov; on the east and northeast by Russia; and on the north by Belarus. The Crimean Autonomous Republic—encompassing the Crimean Peninsula, or Crimea, in the south—is included in Ukraine's borders. The capital and largest city is Kyiv.

Much of Ukraine is a fertile plain suited for agriculture. Ukraine is rich in natural resources, and has a developed economy with significant agricultural and industrial sectors. The country has a democratic form of government headed by a president.

From the 9th century AD northern Ukraine was part of Kyivan Rus, the first significant East Slavic state, which succumbed to the Mongol invasions of the 13th century. Ukraine was for centuries thereafter under the rule of a succession of foreign powers, including Poland and the Russian Empire.

In 1918 a Bolshevik (Communist) government was established in Ukraine, and in 1922 the Ukrainian Soviet Socialist Republic (SSR) was one of the four founding republics of the Union of Soviet Socialist Republics (USSR). Ukraine's declaration of independence, approved by a popular vote on December 1, 1991, was a major factor in the USSR's collapse later that month.

Religion

Traditionally Ukraine was inhabited by pagan tribes, but by the turn of the first millennium AD Byzantine-rite Christianity was introduced. It is thought that Apostle Andrew came up to the site where the city of Kiev was built in his lifetime.

However it was only by the 900s A.D that the emerging state, the Kievan Rus became influenced by the Byzantine Empire, the first known conversion was by the dutchess Saint Olga who came to Constantinople in (?). Several years later, her son, Knyaz Vladimir baptised his people in the Dnieper River. This began a long history of the dominance of the Eastern Orthodoxy in Ruthenia that later was to influence Russia and Ukraine.

Judaism was present on Ukrainian lands for approximately 2000 years when Jewish traders appeared in Greek colonies. At the same time the neighbouring Khazar Kaganate was influenced by Judaism who profess Judaism. Since the 13th century the Jewish presence in Ukraine increased significantly. Later on in Ukraine was established new teaching of Judaism - Hasidism.

The Muslim religion was brought to Ukraine by a long history of controversies with Golden Horde and Ottoman Empire. Crimean Tatars accepted Islam by been part of Golden Horde and later the vassals of Ottoman Empire.

Religion in Ukraine went through a series of phases, but one notably in the times of the Soviet Union. Such was the rule of the official atheist regime, only a small fraction of people officially were church goers.

Estimates compiled by the independent Razumkov centre in a nationwide survey in 2003 found that 75.2 percent of the respondents believe in God and 21.9 percent said they did not believe in God. 37.4 percent said that they attended church on regular basis.

As of January 1st, 2006, there were 30,507 registered religious organizations, including 29,262 religious communities; the Government estimated that there were approximately 1,679 unregistered religious communities. More than 90 percent of religiously active citizens were Christians, the majority Orthodox.

Religious practice was generally stronger in the western part of the country due to Western Ukraine being part of Soviet Union for a shorter period (1939-41; 1944-91).

The different confessions in Ukranian society were estimated by the nationwide survey.

The result differ from the official number of registered religious groups. Thus the Russian Orthodox church (today in Ukraine, it is called the Ukrainian Orthodox Church (Moscow Patriarchate) traditionally (since the times of the Russian Empire and the Soviet Union) has enjoyed the favour of many local authorities.

The survey indicates

• 50.44 percent - with the Ukrainian Orthodox Church - Kiev Patriarchate;
• only 26.13 percent believers identify themselves as adherents of Ukrainian Orthodox Church (Moscow Patriarchate) (which has the largest number of Churches in Ukraine);
• 8.02 percent belong to the Ukrainian Greek Catholic Church (sometimes referred to as the Uniate, Byzantine, or Eastern Rite Church);
• 7.21 percent to the Ukrainian Autocephalous Orthodox Church;
• 2.19 percent belonged to the Roman Catholic Church;
• 2.19 percent identified themselves as Protestants (Pentecostal, Baptist, Lutheran, Mennonites, Adventists);
• 0.63 percent belong to Jewish religious practices;
• 3.2 percent said they belonged to "other denominations".

Culture

When you travel to Ukraine, you enter the country, full of paradoxes. Ukrainians are proud of their roots and reticent about their recent past; the country participates in international space programs and produces the world's largest aircraft, but still lives in the universe of superstitions.

Recently Ukraine has added another paradox to the list. Though the state originated over a thousand years ago in Kyivan, Rus many Ukrainian newspapers declared December 2004 as "the birth of a nation." The Ukrainian 'Orange revolution' burst onto the world's TV screens and newspaper pages. A new civil society was born in the demonstrators' tent camp in freezing winter temperatures and in the overheated rooms of the Supreme Court. The world was having a lightning geography lesson about the country in the south of Europe, sandwiched between Russia and European Union.

The Ukrainian business scene is a blend of the Soviet legacy and Ukrainian adventurous, entrepreneurial spirit, encased in a complex tax and regulatory framework. Despite the challenges, business in Ukraine does go on and in many cases presents unprecedented opportunities.

The country has a well-developed industrial base, rich agricultural resources and proximity to existing and untapped markets in Europe, Russia and Asia. The majority of the Soviet high-tech military plants were in Ukraine, which resulted in a highly skilled engineering workforce and large manufacturing capacities.

Doing business here is not always easy, but guaranteed to be exciting. Socializing and friendliness outside the office will more than compensate for the setbacks.

The process of business negotiation can be quite long-winded.

Ukrainians will start the dialogue with a long "warm-up" session about the journey, the family or proposed entertainment for the evening. Don't get impatient: any attempt to rush straight into business is considered rude. For Ukrainians the beginning of the meeting is a time for evaluating the individual with whom one is conducting business.

Ukrainians expect friendships to extend to business. Strong family ties and friendships have been a survival mechanism in Ukraine for centuries, be it in farming, when several families were pooling resources, or in times of hardship and crisis.

A network of good personal contacts is the most valued asset in getting something done.

While Western negotiators prefer sequential approach and tackle every issue separately, Ukrainians tend to come to an understanding on the global picture first, before getting into the details of a proposition or a contract. Sometimes a Ukrainian host may start negotiations with: "Well, this is how we see it and this is the result we would like to get. And what is your proposal?" The Western counterparts are not always prepared for such an abrupt beginning. Consider your answer carefully, as your initial statement will be perceived as the backbone of your proposal.

The Ukrainian approach to negotiation can be emotional and direct. Ukrainian managers will consider early compromise to be a sign of weakness and will give minimal or no concession. Recent sociological research by the Institute of Sociology in Kyiv showed that Ukrainians say the word "No" in negotiations nine times more often than their Western counterparts!

Though used frequently, it does not necessarily put the end to the discussion. Try to approach the matter in a different way. You should continue to talk about the details, deliveries and so on.

Save any final price concession for the last meeting, even up to half an hour before you leave for the airport. You will be respected for tenacity and professionalism in your negotiating stance.

If you have discussed the entire plan with your counterparts and agreed upon every possible combination of events that could occur, you will probably be invited to sign "A Protocol of Intent." This is effectively a memorandum of the meeting, which is considered by Ukrainians as the first landmark on the long route to a business relationship and a contract.

Often at this stage of the contract signature you will be required to put your "Company stamp" as the official confirmation of your signature, so don't forget to bring a self-inking rubber company seal with you.

Finally, however tiring the day (or, more likely, the week) of negotiations has been, don't refuse an invitation to dinner. As Ukrainians love to entertain, toasting at the dinner table is just as important as the work achieved in the morning negotiations, if not more so. It is a part of building the relationship of trust and loyalty. You can impress your hosts with the shortest and most common Ukrainian toast: "Budmo!"

If you understand and the local customs and are open, direct and professional, you will be respected in Ukraine. And remember: "Budmo!" means "Let us be..."