Expanding into Ukraine: A strategic guide by Iryna Seryvko, Regional Director of Sii Ukraine

The landscape of international business in Ukraine is shifting. Even amid the ongoing military conflict, Ukraine continues to be recognized for its exceptional IT talent and is still drawing increasing interest from global investors. International companies are increasingly entering the market to tap into new opportunities – from largescale reconstruction initiatives to deeper integration with the European Union.

According to the OECD (Organisation for Economic Co-operation and Development), Ukraine’s recovery and modernization needs present vast potential across sectors like energy, logistics, and infrastructure, making it a strategic destination for long-term investment (source: oecd.org).

– Ukraine is no longer just a destination for cost-optimization; it is a hub for high-end engineering and resilient innovation – says Iryna Seryvko, Regional Director of Sii Ukraine. – When I talk with our customers, their focus has shifted toward long-term presence and being part of the country’s reconstruction – she adds.

To succeed in this evolving environment, Iryna highlights three critical pillars that every business must address.

1. Structural compliance and entity setup

One of the first decisions is whether to establish a local legal entity or use a partner’s infrastructure. In Ukraine, the Diia.City framework offers significant tax incentives, but navigating its requirements can be complex for newcomers.

– Many of the partners I consult are surprised by the agility of the Ukrainian digital state, but they are cautious about the administrative overhead –Iryna notes.

💡 Advisory Tip: Before registering a company, evaluate whether your scale justifies the overhead of a local Human Resources and accounting department. For many, starting through a partner’s platform is a faster way to achieve a better time-to-market.

2. Talent acquisition in a competitive ecosystem

Ukraine’s tech scene is concentrated in clusters, such as the Lviv IT Cluster, which Sii Ukraine joined to stay at the heart of the community.

– I often emphasize that in Ukraine, you don’t just hire an employee; you build a relationship – says Iryna. – Accessing top-tier talent requires a presence in the local community.

💡 Advisory Tip: Focus on “Employer Branding” that emphasizes stability and professional growth. In a volatile environment, specialists seek partners with a strong organizational culture, such as Sii’s “Power People” mission, highlighting long-term cooperation over short-term gigs.

3. De-risking via the BOT Model

A common mistake is choosing a simple vendor model that doesn’t allow for future ownership of the team. This is where the BOT (Build-Operate-Transfer) model provides a strategic advantage.

– The BOT model is our answer to the ‘uncertainty’ factor – Iryna explains. – It allows our clients to build their own DNA within a team while we handle the local complexities. It’s the safest bridge to full independence – she adds.

💡 Advisory Tip: Start by building a dedicated team within Sii’s structure. This allows you to test the market and cultural fit without upfront capital expenditure. After 18-36 months, you can transfer the entire operation, including IP (Intellectual Property), into your own corporate structure.

Take action

As the leader of Sii Ukraine, Iryna Seryvko acts as the primary point of contact for international companies looking to navigate this market. She and her team provide more than just resources; they act as an operational bridge, handling:

• Operational setup: from secure office spaces to local labor law compliance.
• Growth & scaling: leveraging deep roots in the Ukrainian tech ecosystem to source specialists.
• Strategic transition: Ensuring a seamless handover when you are ready to operate independently.

Ukraine offers substantial opportunities for those who approach it with the right local expertise. To discuss your market entry strategy or learn more about the current business climate, you can reach out to Iryna Seryvko via the Sii Ukraine website or directly via Linkedin.