The Ukrainian business methodology is somewhere between their own adventurousness and the old Soviet legacy of bureaucracy. A relatively new country by international standards having had a “rebirth” in December 2004 after their “Orange Revolution”. The country has a well established industrial base and rich agricultural resources. The location is also fortuitous, nestled comfortably between Russia and the European Union. Most of the high tech plants of the old Soviet Union were in the Ukraine, so the workforce is highly skilled and motivated.

Doing business in the Ukraine isn’t straightforward, but has rewards enough to offset any negativity. A complex legal and tax framework complicates matters for foreign investors and businesses, but there are plenty of opportunities for those in the know. Doing deals here is a long, drawn out process that may take many visits.

Meeting and greeting is very informal in the Ukraine. A firm handshake with friendly eye contact on initial meeting and before leaving is normal, as is repeating your name during the handshake. Business cards aren’t really valued here, and there is no formal etiquette around them. Inexpensive business cards will do fine, no need for anything fancy or expensive. Although introductions are title, surname, these quickly give way to first names once a relationship is struck. Direct communication is valued here, but with a modicum of sensitivity. There is great value placed on delivering information is a calm and positive manner, with sensitivity if warranted. The level of relationship will determine how direct a Ukrainian is with you. The better they know you, the more frank they will be. This makes negotiations fairly straightforward.

The informality is prevalent in most Ukrainian business dealings. Meetings and agendas will be the same. An agenda is merely a guideline to the proceedings as they are more interested in people than things. It will be important to engage with the host and attempt to strike up a relationship with them from the off. Expect a fair amount of meeting time to be used for non work related subjects. Ukrainians like to get to know their colleagues, and it is regarded as bad form to jump straight to business. A little small talk and relationship building will get any business meeting off to a positive and fruitful beginning.

However, the Ukrainian approach to negotiation is direct and sequential. Each item must be covered and agreed separately and in order to progress. They like to look at the big picture so be prepared to step back and take a wider view during discussions. They regard it as a weakness to give concessions early on, but even though they seem to say “no” more often than any other culture, it doesn’t mean “No, final answer”, there may still be room for more negotiation.

Once an agreement has been reached there will probably be a “Protocol of Intent” to sign. This is the first document of many in a long road to a deal. It is however meaningful to the Ukrainians so is important to take seriously.

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