Interview with Andy Hunder, AmCham Ukraine President by Daria Sivovol, AmCham Estonia CEO
Andy, how would you describe the current business climate in Ukraine, especially for American companies?
The wartime resilience of Ukraine is phenomenal. Inspired by the lionhearted defenders on the frontlines, Ukrainians show the entire world that they do the impossible on Ukraine’s path to victory. While soldiers defend the sovereignty of the country, it is the workforce that powers and funds the fight, ensuring that the struggle for freedom remains viable. Companies are true business heroes who continue to operate in Ukraine, keeping the economy running, paying taxes, and creating jobs. The spirit of business is undaunted, with 85% of AmCham members fully operational. Ukraine is open for business. Over 200 new members have joined AmCham since the beginning of Russia’s full-scale invasion of Ukraine on February 24, 2022.
It’s fascinating how our lives have changed since February 24, 2022. We will never forget this time that has changed everything in us forever: the way we live, the way we fight, the way we do business. Thirty-two percent of AmCham members have had employees killed. Thirty percent of companies have had their plants and facilities damaged. Eight four percent have employees who are serving in the Armed Forces of Ukraine. The tragedy of Ukrainians is devastating, the war has claimed thousands of lives. The cost of the damage is staggering – hundreds of billions of dollars.
From the day of the invasion, we, as a business association, called on companies to leave Russia, as there is no future for transparent business there. It is vital to be on the right side of history.
What significant economic reforms have taken place in Ukraine recently, and how have they affected foreign investment?
A recent AmCham/Citi survey shows that military service deferment is now the top challenge for businesses in Ukraine. Eighty-one percent of companies in Ukraine stated that military mobilization has an impact on their business performance. We are working with the government to find the right balance: the army gets what it needs, the economy and business keep running, and taxes are paid.
Other key issues and priorities for AmCham companies now are security and defense, Ukraine’s EU integration, recovery, veterans’ reintegration, rule of law, demining, war risk insurance, energy security, and a predictable tax policy. AmCham Ukraine has developed a very detailed strategic document,10 Priorities for Ukraine’s Economic Recovery, that is vital to accelerating rebuilding efforts and laying the foundation for future growth.
Which sectors in Ukraine currently offer the most attractive opportunities for foreign investors?
Several sectors in Ukraine are currently offering attractive opportunities for foreign investors, especially on the country’s path to economic recovery. Companies see opportunities in security and defense, infrastructure and construction, agriculture, IT and technology, energy and renewables, and high-tech production. We see a strong interest in fostering US-Ukraine cooperation in defense tech, a direction that attracts many companies now.
What are the biggest challenges foreign investors face when entering the Ukrainian market, and how can they mitigate these risks?
AmCham’s daily policy priorities turned into wartime challenges that require attention 24/7: security and defense (including cybersecurity), mobilization and conscription of employees, rebuilding and recovery, demining, war risk insurance, energy security, brain drain and mental health, grain corridor and food security, shadow economy, veterans’ reintegration, and many others.
Our latest surveys show that the key challenges of doing business in 2024 are reservation of employees from military service (80%), safety and security of staff (75%), employees’ health and mental well-being (50%), electricity outages (50%), Russia’s missile attacks on vital infrastructure and business assets (45%).
Top 3 steps the Ukrainian government should take to significantly help businesses on the ground: ensure clear and transparent reservation procedure, implement real and effective judicial reform, and ensure predictability and stability of tax legislation.
Addressing these and other challenges requires careful planning for foreign investors, from securing workforce continuity and employee well-being to implementing infrastructure resilience and security measures.
AmCham Ukraine is ready to assist U.S. and international companies in entering the Ukrainian market. To successfully manage risks, companies should have and regularly update their contingency plans. US companies also need to have a representative on the ground in Ukraine so that they can understand the situation and quickly make a decision in an evolving environment. It’s important to understand that Ukraine’s legislation differs from that of the US. AmCham Ukraine has professional law firms among its members that can provide top-level support.
What role do you see American businesses playing in the reconstruction of Ukraine?
Ukraine’s economic recovery is a top priority for Ukraine and the business community. The private sector is the driving force behind Ukraine’s recovery and reconstruction. The innovation and knowledge of American companies will be invaluable in reshaping Ukraine’s economy, infrastructure, and industries. Our team works closely with the President, Parliament, Government, and US partners to move the reform agenda forward, contributing to Ukraine’s economic recovery and transformation.
What are some of the key initiatives AmCham Ukraine is currently focused on?
In December 2022, we launched AmCham’s Security and Defense Committee, which serves as an advisory platform for global defense companies interested in Ukraine and advocates for developing a sustainable and well-regulated security and defense sector in Ukraine. The Committee unites such companies as Boeing, Honeywell, Leidos, Lockheed Martin, and Parsons. The Committee’s key focuses are the defense procurement system, the development of military tech projects, and deepening cooperation with national and local defense enterprises.
AmCham launched Ukraine’s Recovery direction to gather its efforts, initiatives, and events, engaging more companies in Ukraine’s reconstruction.
Support and reintegration of veterans are among the key priorities of the AmCham Ukraine Human Capital Committee. AmCham stands for meaningful employment for war veterans by connecting key stakeholders from the government and business community to create sustainable career development opportunities and encouraging employers to shape a strong and diversified workforce.
We also just launched the Business Resilience & Industrial Security Hub. It has been established to enhance the resilience and security of local and foreign businesses united by AmCham Ukraine. The Hub will serve as a platform for sharing experiences and best practices, discussing forecasts and challenges, and developing strategies to mitigate business risks in the current wartime environment.
Last but not least – women empowerment. For more than 11 years, AmCham Ukraine has been empowering Ukrainian women leaders and fostering their leadership skills through its Women’s Executives Leadership Development Initiative (WELDI). The number of women in management positions in AmCham member companies is steadily increasing and currently stands at 20%. Our team works closely with the US Department of Commerce and the US Department of State and organized joint projects during war to provide Ukrainian women entrepreneurs and member companies’ female leaders with the necessary resources and opportunities to scale their skills, become even more resilient, and grow their businesses despite hardship.
What have been some of the biggest challenges you’ve faced as the President of the American Chamber of Commerce in Ukraine?
People are the top priority. The safety and security of the team is something I’m waking up and checking on daily, especially during missile and drone attacks. Mental health is also crucial, and we work with a well-being company so that every team member can set up a session with a psychologist and receive professional help.
Running an organization through a full-scale war is not something taught in business schools. It has required a shift from traditional leadership models to ones rooted in empathy, resilience, and rapid adaptability. We have to implement contingency plans when needed and stay operational under extreme circumstances. This has required not just managing operations but also fostering empathy, trust, and human-centered leadership.
Could you share a success story or a moment of pride during your tenure that stands out to you? What keeps you motivated in your role, especially during such challenging times for Ukraine?
As a leader, I am extremely proud of my team every day – passionate and dedicated professionals who work hard to support businesses in Ukraine and the economy at large. As a leader of the business association, I am proud of our members – true business heroes who believe in Ukraine, invest in Ukraine, and create jobs in Ukraine on the country’s path to recovery and victory. I’m honored that AmChams in Europe family recognized all efforts of our team and members last year while named AmCham Ukraine winner of the ACE Creative Network Award for “Continuity amid Crisis: How to Steer AmCham through Country’s Hardship” (based on the example of running AmCham in wartime Ukraine).
Advice for Business Leaders:
What advice would you give to American and European business leaders considering entering the Ukrainian market today, and what message would you like to convey to the international business community?
It’s risky to invest in Ukraine, but it’s riskier not to invest. My message will be – come to Ukraine to do business, now is the time to do so. I am convinced that now is the right moment to begin looking at Ukraine as a once-in-a-lifetime business opportunity. Ukraine is a big country with a large population and an excellent workforce on the border of the EU, with EU accession on track. A country that has turned away from Russia and is clearly facing the West. The biggest national recovery project in Europe since World War II is already underway and will gain further momentum in the months and years ahead. Those who join this process during the early stages will benefit from a range of advantages.