Doing Business in Ukraine – When Is A Roof Not A Roof?

Those of you looking for me to say it is easy to do business here are in for a long wait!!

It is hard, very hard and there are only a few ways in which you stand a chance of succeeding……..even if you have fluent Russian skills!

The first way is to be an international giant in the business world………but that does not mean you will have it easy either, just ask Telenor!

Every foreigner here needs what is called a “Roof” in the world of business…..unless you make a living via the internet, when obviously it really doesn’t matter where you are to do it………and of course nobody here knows you are doing it anyway, unless you tell them.

No matter how big or small your organisation is, you will need a “roof” to do business in Ukraine. It is the same in Russia.

What is a “roof”? It is someone who is “connected” with either your local, if you are a small operation, or the national, if you are a large organisation, powers that be. One way or another this does not come for free, be it free dining at your restaurant for your roof and friends every now and again, if you own a restaurant, or by way of “administrative fee” to keep those pesky “agencies”, be they official or unofficial off of your back (if you are so big you register on the “national radar”) and you need to “get on”.

Generally, your “roof” will ask for nothing until you ask something of them.

How will you know if you have the right roof?……..do your homework before you start working here. They will make themselves apparent as you go through the legal processes necessary to carry out your required function in the Ukrainian market.

Yeh, yeh, yeh……they don’t know who you know back in New Jersey (or wherever)………but you ain’t in New Jersey now and whatever and whoever you know or think you know will not make any difference here………particularly as you don’t know who they know and you are on their patch!

You need a Ukrainian “roof” to succeed in business in Ukraine – it is that simple. If you don’t believe me, come and try to do something here without one and see how long your business lasts.

Do I have a “roof”? – Of course I do, I have several……well I am a builder!!

Wowwwwww – it sounds like the Wild West East………erm, well, no it’s not……not unless you are stupid.  If you come here for the reasons of business then you must do business the Ukrainian way.  Even Ukrainian businesses have a “roof” – for that is the Ukrainian way.

But it sounds like a “roof” just takes things from me and I get nothing in return……it’s almost mafiosi!!

 

No, it is not, the mafia here are a different issue and are indeed taken care of by your “roof”, if they have an interest in you at all………..which is very, very, very unlikely……..particularly if you are a small or medium sized concern.  Anyway, as is traditional, the mafia generally stick to cash operations…..like prostitution, “import and export”, land, construction and gambling.

Construction? – I thought you said you were a builder!! – Erm, yes I did and yes I am.  It may well be I know some of the mafia……..but I don’t know that for certain as they don’t wear a badge saying “Mafia”.  When I say construction I mean big construction, the kind I used to do back in the UK with Mowlem……..not the bespoke, build to order “one off’s” I do here, it just isn’t worth their time……..and I have a “roof” fit for a mansion, even if I am only a porch!!

Your “roof” should take care of the “administration” and negate any problems which may come from them.  The “roof” will make things happen for you much more swiftly than would otherwise happen….like a licence to sell alcohol if you open a restaurant etc etc., or in my case, speeding up planning permission and technical passport documentation.  Without my roof, my construction activities would be bogged down in administrative documentation for months……if not years…..and therefore is of great use to me.  How can this happen – because the “roof” is connected to the right people in the “administration” to make this happen. 

Now, you see, it is not as bad as you think is it.  A good “roof” makes things happen more quickly than they otherwise would, will prevent any “unnecessary attention” and will only ever be around when you need them.  In effect, they will provide a “next day service” compared to “standard service”, if they are any good……..or at least get you “standard service” if you were getting no service at all – if the latter is the case, look for a better “roof”…..or the “roof”s roof”……or even the “roof’s roof’s roof”. 

Clear as mud eh?……..All will become apparent when you get here and if you are lucky, you may find someone who has been here a while and can help with your “roof”………or indeed your roof.  (Did I mention I was a builder?)

So there you have it.  You can succeed in business here but it ain’t as easy as it is back home.  What you thought you know about doing business…..you don’t.  The playing field here does not resemble your pitch at home.  Therefore, follow the rules of “P” – Planning and Preparation Prevents Piss Poor Performance, so you know what you are getting into………..oh and get a good “roof”.