UKRSIBBANK marked summer 2024 by opening a number of new branches in locations across Ukraine including Berdychiv and Poltava. This expanding national network of branches speaks volumes about the bank’s long-term commitment to Ukraine, and reflects a high degree of confidence in a recovery process that UKRSIBBANK officials say is already well underway despite the many obvious obstacles presented by Russia’s ongoing invasion.

“Ukrainians are rebuilding every day. In a sense, the national recovery has never stopped since the very start of the invasion,” says CEO and Country Manager for Ukraine at BNP Parabas and Chairman of the Management Board of UKRSIBBANK Laurent Dupuch. He warns against adopting a wait-and-see attitude toward doing business in wartime Ukraine, and argues instead for a more pragmatic but proactive outlook. “I am convinced the best approach is to base any plans on today’s wartime conditions. I hope it will not be long term. This might not at first glance appear particularly positive, but it allows businesses to draw up practical plans rather than sitting and waiting for a better moment. Once they have a clear vision, they can identify priorities and move forward.”

Looking back on UKRSIBBANK’s experience during the first two and a half years of Russia’s full-scale invasion, Mr. Dupuch identifies two clear phases: the initial period when protecting employees and maintaining core services for the bank’s two million customers was the top priority, and the past year or so, which has been marked by an expanding loan portfolio amid a gradually improving business climate and rising interest in financing. He recalls with pride how the bank managed to complete salary payments to more than seven hundred thousand employees of corporate clients during the tumultuous first days of the invasion, and describes this unique experience as something akin to the ultimate stress test. “We demonstrated that we are a robust bank with an incredible team and a strong business model,” he says.

Inevitably, wartime conditions continue to throw up new challenges on a regular basis. Since the first winter of the war and especially during summer 2024, UKRSIBBANK has had to adjust to the new reality of rolling power cuts. The bank has responded by acquiring a fleet of over 260 diesel generators to power its more than two hundred branches and over seven hundred ATM machines throughout Ukraine.

In order to maximize connectivity in what remains an extremely unpredictable environment, the bank has also taken steps to expand its communications options with additional satellite links and telecommunications channels. Meanwhile, Mr. Dupuch confirms that UKRSIBBANK has invested an average of thirty million euros annually since 2022 to improve IT capacity and strengthen cybersecurity. “We aim to remain institutionally agile and receptive to the evolving needs of our customers,” he says.

Mr. Dupuch is full of praise for what he terms as the remarkable resilience demonstrated by the Ukrainian business community since February 2022, and speaks approvingly of the adaptability that has allowed so many individual businesses to adjust to rapidly changing circumstances. He points to the success of the Black Sea maritime transport corridor as an example of Ukrainian boldness and ingenuity, while also highlighting the crucial contribution made by Ukraine’s railway operator, Ukrzaliznytsia, in helping businesses overcome the considerable logistical obstacles created by Russia’s invasion.

Ukraine’s famed resilience will once again be put to the test in the coming months as the country prepares its battered power grid for the winter season. UKRSIBBANK is heavily involved in these efforts, and is currently working with customers to reduce energy consumption and build up production capacity.

Russia’s invasion has had a devastating impact on the Ukrainian economy, but Mr. Dupuch notes a number of positive trends within the business community that give cause for guarded optimism. While many of UKRSIBBANK’s clients were initially focused on maintaining a degree of stability and continuity in their activities, he says there are now signs of increasing appetite for financing as companies in all segments of the economy look to build and reinvest. “Throughout the past year, we have witnessed increasing demand for loans. After the initial shock of the invasion, businesses have grown accustomed to the new reality and are thinking once more about the future. As a bank, we share this vision of today’s Ukraine as a place where it is possible to develop ambitious plans.”

As the country’s economic recovery gains momentum, much will depend on Ukraine’s ability to attract international investment. Thanks to its extensive local knowledge and status as one of the largest international banks present in Ukraine, Mr. Dupuch is confident UKRSIBBANK can play a prominent role in this process. The bank has been majority-owned by France’s BNP Paribas since 2006 and is part of a global network including sixty three countries, creating a range of opportunities to engage with the international investment community. “I believe we can accelerate the economic development of the country and serve as a bridge for corporate investment into Ukraine,” he says.

One of the bank’s key focuses is providing a steady flow of accurate information about the realities of today’s Ukraine to BNP Paribas colleagues around the world. “Sharing up-to-date information is vital as we work to increase awareness of Ukraine among our corporate bankers and their customers,” explains Mr. Dupuch. “We’ve been in Ukraine for a long time, but others have not and don’t always know what the country has to offer. Our priority is to make sure Ukraine remains on the radar of corporate clients. It is crucial that people have access to expert knowledge.”

When it comes to investing in Ukraine, Mr. Dupuch is convinced there is no substitute for encountering the country first-hand. He encourages colleagues and potential investors to visit Ukraine personally if possible, and argues that interested parties should already be looking to identify opportunities and develop their own Ukrainian networks. “Those who prefer to wait may eventually find that it is too late,” he says. “Ukraine is much closer to the rest of Europe than many people realize, and has demonstrated incredible strength. The economic recovery we are currently witnessing will continue to accelerate, but the time to act is now.”

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