News Tag: CUTIS
Rules of origin for apparel and footwear under the CUFTA – video

In order to obtain preferential access to the Canadian market under the Canada-Ukraine Free Trade Agreement (CUFTA), the product must be of Ukrainian origin.

The rules of origin impact on:

  • Import duty rates
  • Tariff quotas
  • Export trade statistics

It is essential to know that a declaration of origin of the goods is the only document Ukrainian producer needs to confirm the origin.

What does this mean for Ukrainian business?

Ukrainian companies don’t have to receive any additional certificates. The origin information shall be indicated on an invoice or any other document containing the description of the goods. Therefore, it means reducing financial and time costs for customs clearance of export products.

You can find out more about rules of origin for Ukrainian apparel and footwear goods under the CUFTA from Olexandra Brovko, CUTIS Senior Expert on Trade and Investment.

To free download the manual – I CAN Export: Rules of origin under the Canada-Ukraine Free Trade Agreement. Guidelines for Exporters (in Ukrainian), please follow the link.

Entrepreneurs from Slovyansk discussed how to overcome barriers in women-led businesses

The CUTIS project in cooperation with regional chambers of commerce and industry launched a series of #SheChampion seminars. The main goal is to discuss barriers women entrepreneurs face in business and international trade, as well as share experience in entering foreign markets.

On March 4, in cooperation with the Donetsk Chamber of Commerce and Industry, the first #SheChampion seminar was held in Slovyansk, bringing together more than 20 participants.

Women entrepreneurs discussed gender issues in international trade, new trends in the Canadian markets and shared success stories of finding new partners in foreign markets.

Natali Ivanova, Women’s Entrepreneurship Development Activities Coordinator by Donetsk Chamber of Commerce and Industry, welcomed the participants of the event. She described what kind of activities the Committee of Women’s Entrepreneurship conducts.

Vira Porovska, an expert on gender issues of the CUTIS project, talked about CUTIS gender component: SheChampion meetings and SHEforSHE Mentorship Program and presented a general report of the gender analysis of small and medium-sized businesses in 5 industries. Gender stereotypes, socially anticipated female behaviour, double burden, and conflict of professional and private roles were at the center of discussing gender barriers faced by women in export activities.

Two successful businesswomen – the founder of Praniville creative workshop Natalia Rak and owner of AB.Zabava Art ceramics & art workshop Hanna Butko shared their experience of creating a business from the very beginning. The stories of women are quite illustrative as they both were forced to start over because of the armed conflict in eastern Ukraine.

In 2014, Natalia Rak moved from the occupied part of Donbas to Druzhivka where she started making cookies. Trial consignments were bought by friends and acquaintances. Now, prianivil.in.ua is an established small business specialized in unique recipe confectionery. The company is considering expanding its product line.

Until 2014, Anna Butko worked in a consulting firm. After the company ceased its operations, the woman had to find other ways to make her living. She found comfort in her creative work. Anna began to study the secrets of pottery. Now AV.Zabava Art products are known in many countries of the world, including Ukraine, the Czech Republic, and Poland.

Kateryna Vitkovska, trainer, discover the secrets of successful work on the Etsy online platform. Kateryna created her own KvitkaBags brand and sells textiles and handbags all over the world. Kateryna Vitkovskaya also told about reputational risks for sellers, which may entail refusals of sales, negative feedback, etc.

In the second part of the event, the participants had the opportunity to improve their recruiting skills – Vira Porovska held a master class on attracting new specialists to the company.

Resource World Magazine highlighted mining in Ukraine

Resource World Magazine – one of the leading media in the business of mining, oil, gas and green technologies with subscribers in 46 countries published the outputs of the Mining in Ukraine conference, organized by CUTIS Project and the Canada-Ukraine Chamber of Commerce (CUCC) within the framework of PDAC Convention on March 2nd, 2020 in Toronto.

The editor Ellsworth Dickson wrote an article about activities of the state-owned Ukrainian exploration company “Nadra Ukrayny”, represented at the conference by the Chairman Taras Kuzmych.

Please read the whole article below:

Ukraine state exploration company seeking partners

By Ellsworth Dickson

In a presentation at the recent Prospectors and Developers of Canada Convention in Toronto, Canada, Taras Kuzmych, Chairman of National Joint Stock Company (NJSC), Nadra Ukrany, outlined the many activities of the state-owned Ukrainian exploration company.

The company carries out geological exploration and invests in projects in the exploration and production sector in the country – mostly oil and gas projects but some mineral projects as well.

Although Nadra Ukrany has been in existence in one form or another for about 80 years, the current state company was formed in 2000 “….to improve minerals supply for country’s needs [and] to reserve and increase geological enterprises’ potential.”

Considering the tumultuous events Ukraine has had to endure during the 20th century, it is remarkable that the NJSC has explored over 1,800 oil fields, discovered over 350 hydrocarbon deposits, drilled over 1,000 wells and added 2.9 billion tons of fuel reserves with the result that both state-owned and private enterprises represent about 95% of hydrocarbons in Ukraine.

The company has noted that these include hundreds of oil and condensate deposits such as: Shebelinske, Yablunivske, Radchenkivske, Sahaydatske, Mihaylivske, Rybalske, Anastasiyivske that have been discovered, tested and put into operation.

Recently, the NJSC has been modernizing its corporate structure and auditing its Joint Activity Agreements. The company is currently offering a selection of blocks, minerals and cooperating frameworks to investors covering the entire country. Bidding by investors is competition based.

For the oil & gas sector, the NJSC is involved in geological exploration, field development and analysis of wells, environmental monitoring and impact analysis R&D, laboratory studies of core, drilling mud and related activities, including engineering and geological research.

Nadra Ukrany has also been involved with exploring and developing various mineral commodities, including the Dashukivske clay deposit, Muzhiyivske gold and polymetallic ore deposit, coal deposits of the Lviv-Volyn coal basin, native sulphur and potassium salt deposits in the Carpathian region of Ukraine, the Dnieper brown coal basin, the Klintsy native gold deposit (the first Ukrainian gold was extracted out of its ore), and even mineral waters as Naftusya, Morshinska, Polyana Kwasova and Shayanska, as well as numerous deposits of decorative and construction brick.

There are several ways foreign investors can participate such as a Production Sharing Agreement (PSA), a Production Enhancement Contract and Joint Activity.

One example that is available is a farm-in PSA opportunity in the Oleska Oil and Gas Project in western Ukraine. This would involve E&P of conventional and unconventional hydrocarbons. Other oil & gas opportunities are also available.

There are also partnership opportunities for mineral development as well, including titanium in the Zhytomyr region, zirconium in the Krasnorichenske ilmenite field and zirconium, vanadium and scandium in the Paromivske ilmenite field. Scandium is a rare and valuable metal capable of increasing the strength of aluminum to that of steel, making the alloy especially useful for aircraft applications.

Blessed with petroleum and mineral wealth, Ukraine is keen on developing its natural resources and is welcoming foreign investors to participate in a variety of projects.

Dnipro women entrepreneurs learned about new business opportunities and entering foreign markets

The CUTIS project in cooperation with regional chambers of commerce and industry launched a series of #SheChampion seminars. The main goal is to discuss barriers women entrepreneurs face in business and international trade, as well as share experience in entering foreign markets.

On March 3, in cooperation with the Dnipropetrovsk Chamber of Commerce and Industry, the first #SheChampion seminar was held in Dnipro, bringing together 30 participants.

Women entrepreneurs discussed gender issues in international trade, new trends in the Canadian markets and shared success stories of finding new partners in foreign markets.

Vitaliy Zhmurenko, president of the Dnipropetrovsk Chamber of Commerce and Industry, shared plans to create a platform to support women’s business in the region and spoke about a forum for women entrepreneurs in the autumn.

Oleksandr Bondarenko, Head of the Dnipropetrovsk Regional State Administration, stressed the importance of the development of women’s entrepreneurship. In the Dnepropetrovsk region, only one in five businesses is founded by women, so there is still a lot of work to be done. Dnepropetrovsk region is the leader in Ukraine in terms of the production of goods and export volumes. That is why the development of women’s entrepreneurship has considerable economic potential.

Vira Porovska, an expert on gender issues of the CUTIS project, talked about CUTIS gender component: SheChampion meetings and SHEforSHE Mentorship Program and presented a general report of the gender analysis of small and medium-sized businesses in 5 industries. Gender stereotypes, socially anticipated female behaviour, double burden, and conflict of professional and private roles were at the center of discussing gender barriers faced by women in export activities.

Iryna Hrytsai, Deputy Head of the Dnipropetrovsk Regional State Administration, described local government’s achievements in gender equality. In particular, Irina spoke about the creation of a coordination council and the development of a regional family and gender policy program.

Svitlana Cherevko, a Leading specialist of the Export Support Center of the Department of Foreign Economic Relations of the Dnepropetrovsk Chamber of Commerce and Industry, CUTIS Trainer, came out with useful electronic resources helping women-led SMEs in exporting to Canada.

Alina Scherbina, founder of “BE in UA” platform talked about the complexity of entering new markets, the main barriers and how to overcome them. The platform helps to promote the products of local manufacturers, conducts a range of events and develops educational projects for creative business.

In the end, Vira Porovska, conducted a masterclass about recruitment issues for SMEs. She focused on the main three questions that every employer should ask hiring an employee. The participants worked on staff’s motivation, carrier circle and questions to be prepared to discover and evaluate the knowledge, skills, motivation, and compatibility of prospective workers.

New opportunities for foreign investors in the Ukrainian mining industry were presented in Canada

Prospectors & Developers Association of Canada (PDAC) Convention in Toronto is the world’s annual premier mining industry event, bringing together investors, analysts, mining executives, geologists, students, and government officials.

Attendance at the 88th PDAC 2020 Convention totaled 23,144, highlighting the resilience and innovation of the international mineral exploration and mining sector.

Over 132 countries were present at PDAC, including major mining companies from the United States, Canada, China, Brazil, Australia, India, and South Africa.

For the first time within the PDAC agenda, Canada Ukraine Trade and Investment Support Project (CUTIS) in conjunction with the Canada-Ukraine Chamber of Commerce (CUCC) organized a half-day event called “Mining in Ukraine”. Ukrainian State and private mining representatives, as well as Canadian and American mining companies doing business in Ukraine presented to over 80 potential investors. The speakers shared their knowledge about the Ukraine mining industry and potential opportunities.

Roman Opimakh, who serves as the Head of the State Service for Geology and Subsoil of Ukraine was one of the first Ukrainian government speakers. Opimakh highlighted that Ukraine is on its way of transforming State Service for Geology into the service-oriented agency. The plan is to restore trust in the agency by improving the efficiency of its operations and creating investment opportunities for foreign companies. The agency is currently working towards activating “dormant” licenses and lifting artificial regulatory barriers. To attract investments in the development of the Ukrainian mineral sector, the agency is improving access to the existing geological data and conducting e-auctions and PSA tender for mineral projects.

The next speaker, Matt Simpson, CEO of Canadian company Black Iron Inc., a publicly listed company on the TSX, provided an overview of the company’s Shymanivske Iron Ore Project located in Ukraine’s iron belt 8km from Kryvyi Rih, the city with 750,000 people. The site is 2 km from rail, 30 km from power and will have access to 5 ports – 230 km to 430 km from the site. Matt Simpson said that they will need to invest US$436 million for the construction of the mine and plan to produce 4 million tonnes per year of premium 68% iron ore product. The production is scheduled to begin in late 2022. The Company is working closely with the Government of Ukraine to get all the necessary approvals to begin construction. If the project is successful, Matt Simpson predicts that it will generate US$1.2 billion investment over the next 20 years.

Brian C. Savage, Chairman and CEO of Avellana Gold Ltd. a privately held mineral exploration and development company, provided an overview of its development activities in Ukraine. The company owns licenses for gold-polymetallic deposits located in the western, Transcarpathian region of Ukraine near the border with Romania and Hungary. The three licenses cover over 1,300 hectares of land. The company has completed a 3d resource model and is developing a life of mine plan that targets 1 million tonnes of underground mining. Brian Savage said that it will take another two years to bring the project into the production of gold and zinc.

Chairman of the Board of NJSC “Nadra of Ukraine” Taras Kuzmych presented the opportunities of cooperation with NJSC “Nadra of Ukraine”. In particular, Taras Kuzmych outlined the plans for the transformation of NJSC “Nadra of Ukraine” and on specific proposals for cooperation in the field of development of minerals.  In addition to presenting these potential investment projects, Taras Kuzmych stressed the readiness of NJSC “Nadra Ukrainy”, which has vast experience and local expertise, to assist foreign companies entering Ukraine.

Taras Kuzmych presented a detailed brief on frameworks of cooperation with NJSC “Nadra Ukraine” in the joint development of blocks. In particular, it can be conducted on the basis of Production Sharing Agreements (PSAs), Production Enhancement Contracts (PECs) or Joint Activities Agreements (JAAs).

Stanislav Letyvniuk, Development Director of Kislotoupor Group, which was established in 1996, provided an overview of its mining activities in Ukraine. Kislotoupor has been operating in Ukraine for the last 24 years producing and supplying clay, gypsum, and other raw materials for glass production. The Company has completed 7 successful projects in the mining industry 4 of which where greenfield. The production has been exported to more than 10 countries, including countries in Europe, Asia, and the CIS countries. The Company has started a collaboration with customers in North America. In addition, the Company offers consulting services in the areas of deposit analysis, from exploration to the preparation of a business plan and project support.

CUCC’s plan is to hold a similar event next year at PDAC 2021.

All speakers presentations are available on the CUTIS Trade & Investment Portal

Target commodities and services for export promotion to Canada within the Export Strategy of Ukraine

The Ministry of Economic Development, Trade and Agriculture of Ukraine in partnership with the Canada-Ukraine Trade and Investment Support Project (CUTIS) and the National Institute for Strategic Studies presented a report “Target commodities and services for export promotion to Canada within the Export Strategy of Ukraine” on March 5.

The research was conducted by the experts of the Ministry of Economic Development, Trade and Agriculture of Ukraine, the SE “Ukrainian Industry Expertise”, Export Promotion Office (EPO), and supported by the CUTIS project.

The study was divided into two parts. The first one is focused on the selection of most promising commodities and services of Ukrainian exports to Canada within the framework of Ukraine’s Export Strategy.

356 commodities (food and machinery industries) were analyzed, resulting in the selection of 18 target groups.

Besides, the following target services for export promotion from Ukraine to Canada were analyzed: ICT (Computer services) and Creative industries (R&D, Professional and management consulting services, Technical, trade-related, and other business services, Audiovisual and related services, Other personal, cultural, and recreational services).

In the second part, comparative analysis and rating of target commodities and services were carried out.

As a result of the study, the following priorities for export promotion were selected:

Food Industry:

  • Fruits and nuts, frozen;
  • Tomatoes prepared or preserved;
  • Sugar Confectionery;
  • Vegetables, fruit, nuts, prepared or preserved;
  • Chocolate.

Machinery:

  • Articles of Carbon or Graphite Used For Electrical Purposes;
  • Non-Electric Radiators, Air Heaters;
  • Electric Domestic Heating Apparatus;
  • Household or laundry-type washing machines.

Services:

  • Computer services;
  • Technical, trade-related, and other business services;
  • Professional and management consulting services.

As Sergii Kovalov, Deputy Director of the Department of Export Development, Ministry of Economic Development and Trade of Ukraine mentioned, the next steps are development and approval of the Strategic Plan of export promotion to Canada. The ministry also plans to apply this methodology to select export promotion priorities and develop strategic plans for other markets in focus.

EPO is ready to use research results for preparing trade missions to Canada and provide consultations to Ukrainian businesses interested in exporting to Canada.

SheChampion: Vinnytsia and Khmelnytsky women entrepreneurs studied successful export experience to foreign markets

The CUTIS project in cooperation with regional chambers of commerce and industry launched a series of #SheChampion seminars. The main goal is to discuss barriers women entrepreneurs face in business and international trade, as well as share experience in entering foreign markets.

On February 19, in cooperation with the Khmelnytsky Chamber of Commerce and Industry, the first #SheChampion seminar was held in Khmelnytsky, bringing together 30 participants.

Women entrepreneurs discussed gender issues in international trade, new trends in the Canadian markets and shared success stories of finding new partners in foreign markets.

Vira Porovska, CUTIS gender equality expert, made a presentation related to the main barriers for women’s SMEs in exporting (according to GBA report). She also conducted a master class ‘How to find the right people to your business’. The participants learned how to determine what competencies a specialist should possess and how to conduct a professional interview in the absence of a qualified HR.

Maryana Ovcharuk (handcrafted soap “Soap Stories”) and Galina Mikhnyak (CASCAD-HOLOD, furniture and logistics services) explained the complexity of entering new markets based on their own experiences. Besides, they focused on barriers and provided practical advice on how to overcome the challenges.

On February 20, the third #SheChampion seminar was held in Vinnytsia in cooperation with the Vinnytsia Chamber of Commerce and Industry. About 36 women entrepreneurs participated in the event.

During the seminar, the participants learned about gender issues in international trade, and perspective sectors for Ukrainian small and medium enterprises in the Canadian market.

In particular, Vira Porovska CUTIS gender equality expert shared the main achievements of the SHEforSHE mentorship program for women entrepreneurs.

Maria Terekhova, managing partner of the New Fashion Zone platform and one of the mentors of the SHEforSHE program, spoke about the changes introduced by the participants (manufacturers of children’s clothing) as a part of the preparation for the Apparel Sourcing Paris exhibition. Maria also shared her impressions of negotiation with foreign buyers in Paris and explained the basic requirements of foreign distributors to Ukrainian clothing and textiles. Participants also discussed the specifics of the Canadian apparel market and change Ukrainian producers need to adapt.

Besides, trainer Kateryna Voylova provided expertise and professional advice concerning promoting hand-made products on the ETSY platform. During the presentation, issues such as product placement, pricing, and paying difficulties were raised.

In the end, Vira Porovska held a master class to increase staff motivation.

Similar events are planned in other regions of Ukraine. The next seminar will be in Dnipro on March 3. So keep an eye on the updates.

Ukrainian mining is on the world stage

The world’s premier mineral exploration & mining convention will be held in Toronto on March 1-4. Approximately 1,100 exhibitors, 2,500 investors and 25,800 visitors from 132 countries will attend the PDAC Convention in Canada’s business capital.

The powerful mining industry of Ukraine will be represented in a separate event on March 2nd, organized by the Canada-Ukraine Trade and Investment Support Project in cooperation with the Canada-Ukraine Chamber of Commerce (CUCC).

Investment opportunities in Ukraine will be described by, among others, Roman Opimakh, Head of the State Service of Geology and Subsoil of Ukraine; Taras Kuzmych, Chairman of “Nadra Ukrayny”; Matt Simpson, CEO Black Iron Inc. (Shymanivske Iron Ore Project). The full list of speakers and the agenda of the “Mining in Ukraine” conference is available by the link

 

Ukrainian women entrepreneurs in Paris – a new chapter of the SHEforSHE mentorship program

With the support of the CUTIS project, three Ukrainian women entrepreneurs Olesya Timoshyk (TimiTex), Eugenia Lukash (Evgakids) and Kateryna Volkova (Sasha) participated in the largest French textile and apparel exhibition, which took place in Paris from February 10 to 13. That was part of the CUTIS SHEforSHE mentorship program aiming to support the development of women’s businesses in Ukraine and promote their products in foreign markets.

One other Ukrainian company, Jenadin, a knitwear manufacturer, participated in the exhibition catwalk.

The mentor of the SHEforSHE program is Maria Terekhova from Trade House New Fashion Zone, who already has successful experience in promoting Ukrainian apparel in foreign markets.

“For us, as a company that is just planning to enter international markets, participating in such exhibitions is a necessary and very important step. It is an opportunity, at the least, to feel the needs of the market and the requirements for manufacturers, and, at the most, to find new customers”, Olesya Tymoshyk from Chernihiv said.

For Eugenia Lukash (Kherson), founder of Evgakids online children’s clothing store, a trip to Paris also became the first experience of participating in an international apparel exhibition.

‘We are very grateful to the CUTIS project for this opportunity. The Apparel Sourcing Paris is so impressive. We are proud that our first international exhibition is the biggest garment sourcing show in Europe with more than 600 exhibitors from all over the world,’ Eugenia Lukash noted.

According to Kateryna Volkova from Slavutych, who produces children dresses under Sasha trademark, participation in the Apparel Sourcing Paris was a great opportunity to expand to new markets, establish contacts with new partners and present new products.

Jenadin’s participation in the catwalk has become a real highlight of the event. The Ukrainian knitwear producer was highly appreciated by the Parisian public. This success is significant for the producer given the fact that it was the first time for Jenadin to demonstrate its models at such a top international fashion show.

‘I’m very happy that we could present our collection, and also represent Ukrainian manufacturers at the Apparel Sourcing Paris. I want to thank the CUTIS project for giving us this opportunity and unbelievable experience,’ Jenadin CEO Nadiia Koziarivska said.

Maria Terekhova gave a presentation at the Apparel Sourcing Paris regarding benefits that international partners may have working with Ukrainian apparel companies. Maria made a brief overview of the Ukrainian apparel market and spoke about the specifics of searching a business partner in Ukraine.

“Events such as the Apparel Sourcing Paris exhibition are a great opportunity to present Ukraine as an interesting partner for private label production and fruitful cooperation with international retailers. During the event, we got acquainted with African and Latin American buyers. It’s a whole new negotiation experience for us”, Maria mentioned.

According to Olga Shtepa, CUTIS project coordinator, the participation of four Ukrainian companies in the international exhibition in Paris once again confirmed the opinion that Ukrainian companies are fabulous.

‘Businesses are usually established by intuitively searching for potentially profitable market niches and creating products suitable for their founders, but in a very short time, they may grow to the level of a national manufacturer, or even higher. They start planning strategic export activities, creating new jobs and conquering international podiums. Therefore, it is a pleasure to be part of the CUTIS project and the SHEforSHE mentorship program aiming to help grow such businesses and support their efforts to enter the global arena, ‘Olga Shtepa summarized.

How to export furniture to Canada: market trends and consumer preferences

The Canada-Ukraine Trade and Investment Support Project (CUTIS), the Canada-Ukraine Chamber of Commerce (CUCC), as a part of the partnership with the Ukrainian Furniture Association participated in the Smart Export 3.0 conference.

The event brought together about 70 furniture industry representatives who are interested in export development.

Ihor Sanzharovskyi, Director of the CUTIS project in Ukraine, briefly explained how the project supports Ukrainian small and medium-sized businesses (SMEs) in developing export to the Canadian market and focused on the information materials prepared by the project. He also presented a new guide “How to export furniture to Canada”.

You can download the furniture export guide here (in Ukrainian).

Maxim Boroda, CUTIS Senior Trade and Investment Analysis Expert, told about specifics, trends, and consumer preferences in the Canadian furniture market. It’s an interesting fact that the total volume of furniture sales in the Canadian market in 2018 amounted to CAD 38.3 billion, in particular, home furniture (CAD 31.3 billion), home textiles (CAD 1.4 billion) and outdoor furniture (CAD 1.1 billion). It is expected that by 2023 the total volume of furniture sales will reach CAD 46.6 billion. Download the presentation (in Ukrainian).

Oleksandra Brovko, CUTIS Senior Expert on Investment and Trade Policy, clarified regulatory requirements and voluntary certification for Ukrainian furniture in Canada. Download the presentation (in Ukrainian).

Please note that under the Canada-Ukraine Free Trade Agreement (CUFTA), Ukrainian products are not subject to import duties. For example, for Chinese furniture, the duty rates are 8-10%.

Vira Porovska, CUTIS Gender Equality Expert, illustrated why gender-sensitive marketing is an essential requirement of Canadian consumers. Download the presentation (in Ukrainian).

Olga Shtepa, CUTIS Project Coordinator, drew the attention of the event participants to the specifics of the Canadian business culture. In particular, Olga Shtepa named 5 essential components for successful exports to Canada:

  • Website in English (native English)
  • Detailed costs and prices information
  • Farewell to stereotypes
  • Getting rid of misconceptions about your product or service
  • Professional presentation of own products

Download the presentation (in Ukrainian).

Thanks to the support of the CUTIS project 10 Ukrainian furniture companies participated at Canadian Furniture Show 2018: Cube44 (living room and office furniture), ADK (living room and bedroom furniture), Aqua Rodos (bathroom furniture), Merx (kitchen, living room and bedroom furniture), Instyle (kitchen furniture), Stalkon (outdoor furniture), Blest (living room and bedroom furniture), Snite (children’s furniture), Kulik System (office furniture) and Renaissance (children’s furniture) companies was exhibited.

You can read the Blest company success story in the Canadian market here.

The success story of Cube44 furniture company can be found here.