Czech companies have started to receive their first orders related to the reconstruction of Ukraine. Some have received concrete offers and are now implementing them, others are in the preparation phase. This is according to a survey of nearly 200 members of the Chamber of Commerce and the Confederation of Industry of the Czech Republic. According to the President of the Chamber of Commerce Zdeněk Zajíček, the contracts are currently mainly awarded to companies that have not yet had experience with the Ukrainian market.
Companies have started to supply Ukraine mainly with medical equipment or agricultural machinery. However, they are also seeking contracts for the renewal of energy, transport and water supply infrastructure, construction work and materials.
“Surprisingly, the first contracts are mostly won by companies that have not had any experience in supplying Ukraine before. We expected that the companies that would be successful in winning contracts would be mainly those that have already developed business ties in Ukraine and are therefore well versed in the Ukrainian legislative environment and administrative processes, as well as in logistics. However, only a fifth of such companies are still there, the vast majority are newcomers to the market,” said Zdeněk Zajíček, President of the Chamber of Commerce.
Ukraine is also approaching Czech companies on the basis of a list of companies provided to Kiev by representatives of the Czech government, headed by Prime Minister Petr Fiala, during the first Czech-Ukrainian intergovernmental consultations a year ago. At that time, 103 companies from various sectors, mainly mining and mineral processing, engineering, construction and energy, applied to the Chamber of Commerce for cooperation in the reconstruction of the country. According to the survey, one in six companies received offers from Ukraine. One in ten are now implementing contracts.
According to the survey, the majority of companies that have offered their products and services to Ukraine have not yet established any business relationship. Establishing business relations is complicated for Czech companies by, among other things, a lack of information and the difficulty of obtaining state guarantees and insurance.
“These barriers could be completely removed with greater cooperation between the state and company representatives. Especially for companies that have not implemented any contracts in Ukraine in the past, it will be important what support the state and the Export Guarantee and Insurance Corporation will be willing to provide,” said Jan Rafaj, President of the Confederation of Industry and Transport.
The Chamber of Commerce and the Confederation of Industry have therefore addressed a request to the Ministry of Finance and the Ministry of Industry and Trade to transfer the remaining money from the Covid Plus rescue programme to the resources of the insurance company EGAP. This could expand the insurance capacity for exports to Ukraine.
According to business organisations, the capital with which they can finance contracts will also influence how much of a share Czech companies will eventually play in the reconstruction of Ukraine in competition with other countries.
Source: Czech Chamber of Commerc, Confederation of Industry of the Czech Republic and CTK
