How many French companies are currently active in Ukraine?
At present, there are 180 French companies operating in Ukraine. Around three-quarters of these companies have been in Ukraine for more then fifteen years. French businesses contribute significantly to the Ukrainian economy and are present in every region of the country. In total, French companies have invested at least EUR 3.4 billion in Ukraine. This includes EUR 130 million in 2022 during the first year of Russia’s full-scale invasion, which demonstrates the resilience of French companies in Ukraine, mirroring Ukraine’s own remarkable resilience.
French companies have traditionally been among the largest foreign employers in Ukraine. Is this still the case?
French businesses currently employ a total of at least twenty five thousand people in Ukraine. This makes France the largest foreign employer in the country. The French presence is particularly notable in sectors such as retail, banking, and technology, with companies including UKRSIBBANK, Credit Agricole, Auchan, Ubisoft, and BlaBlaCar leading the way. Despite the full-scale invasion launched by Russia in 2022 and the current wartime conditions in Ukraine, no French company has left the country or ceased operations. This commitment has helped strengthen the Ukrainian economy and has provided vital support for the Ukrainian population during what are uniquely challenging times.
The full-scale Russian invasion of Ukraine has now been underway for more than two and a half years. How would you describe the current mood within Ukraine’s French business community?
French companies strive to remain realistic about the situation in Ukraine. We have established a number of committees featuring company directors and managers in order to review various activities and sectors. We also provide companies with information on Ukraine’s reconstruction through newsletters, podcasts, conferences, and webinars. These efforts help keep everyone grounded and vigilant, but also allow for some optimism when appropriate. For instance, the reopening of Ukraine’s seaports in the Odesa region thanks to the Ukrainian military’s success in the Black Sea has enabled easier maritime exports of Ukrainian produce, which was a real breath of fresh air for everyone.
What have been the biggest practical problems presented by the Russian invasion for French businesses in Ukraine?
French companies in Ukraine operate in a wide range of industries. The war has affected every sector of the Ukrainian economy through issues such as power outages, bombings, occupation, and maritime blockades. Bombing in particular poses a risk to everyone in Ukraine including French businesses. Of course, it goes without saying that employee safety is the top priority for all French companies operating in the current wartime conditions. One key focus since 2022 has been the provision of adequate shelter facilities for employees. The 2024 winner of the Chamber’s annual businesswoman award honoring Ukraine’s female entrepreneurs was Recast Plastic, a company that furnishes bomb shelters with recycled plastic products. This highlights the current emphasis on safety.
The Russian occupation of areas in southern and eastern Ukraine poses obvious and significant challenges for French businesses. Russian attacks on Ukraine’s critical civilian infrastructure also affect all sectors of the economy, whether production or service industries. Initial power outages in late 2022 prompted companies to adapt by investing in batteries and generators, but regular blackouts continue to impact productivity. With this in mind, the energy sector is a top priority for Ukraine’s reconstruction.
The Russian invasion creates a range of human resources challenges for French businesses in Ukraine as employees adapt to changing security realities and the Ukrainian government mobilizes personnel to defend the country. As the largest foreign employer in Ukraine, the French business community has a particularly important role to play in adjusting to these new human resources realities.
What have been the biggest success stories of the French business community in Ukraine since 2022?
I regard all French companies present in Ukraine as success stories. Their resilience and determination are an example for the entire business world. They have all remained in Ukraine, have continued to develop their activities, and have organized aid for the Ukrainian population in addition to their business operations.
French companies excel in various sectors including banking, engineering, healthcare, construction, automotive, cosmetics, and luxury goods. In agriculture, French companies cover the entire food chain. In banking, they have never ceased operations, continuously expanding their networks and opening more branches across Ukraine. UKRSIBBANK, for example, has been ranked among the top fifty best employers in wartime Ukraine according to Forbes Ukraine. Credit Agricole remains a leader in the auto loan market.
How has the French-Ukrainian Chamber of Commerce and Industry adapted to the new realities of wartime Ukraine?
Like its member companies, the Chamber never intended to leave Ukraine. Instead, it was clear from the very beginning that it was crucial to stay united during this ordeal. Since February 2022, we have established better communication with companies monitoring economic, social, and political indicators to help them navigate the extraordinary situation in today’s Ukraine.
We quickly resumed community activities, albeit with security considerations as a priority. We began committee meetings online in the very first weeks of the invasion and organized conferences in Paris to raise awareness about Ukraine. Our first in-person meeting took place in June 2022. It was held in a basement.
Looking back, one of the things I am most proud of was our ability to organize the Chamber’s annual Ukrainian businesswoman award ceremony in July 2022. We managed to keep this yearly tradition going despite the extremely challenging conditions. This award has become more meaningful than ever as women are now the backbone of wartime Ukrainian society, with a wide range of additional responsibilities due to the large-scale mobilization of the male population.
What is your message to French businesses that may be thinking of entering the Ukrainian market?
Now is the time to start considering Ukraine. We are currently working to attract new investors, or at least encourage them to keep an eye on the opportunities Ukraine offers by informing them of the business climate and reconstruction opportunities. Ukraine continues to demonstrate incredible resilience. In 2023 the country witnessed robust GDP growth. This trend continues.
Investments are already flowing into Ukraine, particularly funding to rebuild the country. The overall price tag for reconstruction is estimated at nearly USD 500 billion, with critical infrastructure repairs the top priority. However, logistics, engineering, IT, transport, healthcare, and social services are also sectors that will require extensive rebuilding efforts. We need innovative approaches to make this massive undertaking a success. There will be huge opportunities for ambitious companies to seize.
The French-Ukrainian Chamber of Commerce and Industry is a reliable partner in Ukraine. This year, the Chamber is celebrating its 30th anniversary. We have a network of 140 member companies ready to share their extensive experience of working in Ukraine. Our team is also available to help new entrants with their endeavors, including advice on the various financial instruments available for French companies considering expanding their activities in Ukraine.