Canadian businesses with employees in Ukraine scramble to account for workers amid escalating conflict
One offered to help bring her eight Ukrainian staff to Canada, but none of them wanted to leave. “They felt they could be more helpful there.”
Zenon Poticzny’s office is in Etobicoke, but the real work happens halfway across the world — just outside a small Ukrainian city now overrun by the Russian military.
Poticzny, the president of Zhoda Petroleum and a Ukrainian national who grew up in Poland before immigrating to Canada, is invested in several oil projects in his country of origin, including an extraction venture in an oil field near Pryluky in north-central Ukraine that produces nearly 200 barrels a day.
Before the collapse of the Soviet Union, that oil patch was one of the largest production sites belonging to the U.S.S.R., estimated to contain about one billion barrels of light, high-quality petroleum across its vast terrain.
On Friday, as Poticzny’s workers informed him that Russian tanks were rolling across the field in sovereign Ukrainian territory, he was reminded of that earlier era.
“What we’re seeing is a total disaster. But we’ve seen it before,” Poticzny said.
Poticzny is also the president of the Canada-Ukraine Chamber of Commerce, which represents about 230 companies that do business in both countries.
In the past week, many of those employers have scrambled to account for their workers and protect their offices in a country suddenly thrust into battle.
Inna Kogan, who grew up in Kyiv and immigrated to Canada in 1994, operates a law office in Toronto that helps Ukrainians and Russians immigrate to Canada. She has a satellite office in Kyiv staffed by translators, tutors and interpreters that help applicants fill out paperwork.
In the buildup to the conflict, Kogan said she offered to help bring her eight Ukrainian staff to Canada, but none of them wanted to leave.
“They felt they could be more helpful there. They could bring supplies to the injured and help the elderly. They just wanted to stay for patriotic reasons,” Kogan said.
Kogan’s staff members have abandoned their office in Kyiv and are now hiding in bomb shelters as convoys of Russian soldiers amass around the outskirts of the city, she said.
Most nights, they’re awoken to the sound of bombing and gunfire. Some of them work to distract themselves, so Kogan said she’ll receive emails from them at 4 or 5 a.m. local time when they can’t sleep.
Although Kogan tries to keep in daily contact with her employees, she said she recently lost contact with one of them. That employee is based in Kharkiv, where Russian forces have launched a brutal assault, and Kogan said she hasn’t heard from her since Sunday.
“That’s been extremely worrying. When we last spoke a few days ago, she mentioned plans of possibly relocating elsewhere with her family. So I’m hopeful she’s just on route and that’s why she can’t get in touch,” said Kogan.
In recent weeks, the Canada-Ukraine Chamber of Commerce has sought to help businesses and their employees get out of the country and into neighbouring Poland, Slovakia, Hungary and Romania. Sviatoslav Kavetskyi, the chamber’s executive director, said he worked extensively to relocate businesses with Canadian connections in advance of the Russian invasion.
Most Canadian businesses with Ukrainian offices are helmed by Ukrainians themselves, Kavetskyi said.
For many of them, the sight of their home country getting razed by Russian forces has been nothing short of horrifying.
“It’s absolutely devastating. I’ve been crying non-stop for the past four days, taking breaks to do something useful and trying to distract myself with work,” said Kogan.
Poticzny, trying to stay optimistic, hopes his extraction project near Pryluky helped slow Russian tanks.
“When it’s wet and snowy, the oil field becomes very difficult to cross. We’ve actually been meaning to do repairs on it for ages, but never got the chance,” he said.
“I like to think that maybe my field stopped a few tanks.”
Ukrainian-Canadian business leaders voice distress over Russian invasion – The Globe and Mail
Business leaders in the Canadian-Ukrainian community say they are extremely concerned for the safety of friends and employees in Ukraine after Russia invaded the country Thursday.
Zenon Potichny, president of the Canada-Ukraine Chamber of Commerce, which represents more than 200 companies that do business in the two countries, said the situation on the ground is very serious.
He said he hopes all of Canada stands with the people of Ukraine, especially as more than a million Canadians are of Ukrainian descent.
Mr. Potichny is the president of Zhoda Petroleum, a company invested in two oil projects in Ukraine. The company lost control of one of those projects, an offshore drilling operation in the Black Sea, after Russia annexed the Crimea Peninsula in 2014. He said his company is still pursuing ownership of the project through international courts.
Production at the other, an oil field in Lelyaki in central Ukraine, was shut down Thursday because of the dangers of rocket attacks or tanks rolling through the area, he said.
The company also has a dozen employees in Kyiv, who are bunkering down at their homes.
“We did ask if, perhaps, we can assist them,” Mr. Potichny said. “Perhaps we can help them, move them at least to Western Ukraine or that area, but at this point they actually decided to stay with their families in Kyiv.”
He said Western countries should cast a wide net on sanctions to punish hundreds of Russian businessmen close to President Vladimir Putin and isolate Russia from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system.
Borys Wrzesnewskyj, a former Liberal MP and the owner of Future Bakery, a chain of bakeries in Toronto, said he is anxious about the humanitarian disaster unfolding. He said the large size and well-organized nature of Canada’s Ukrainian community means that this country can safely take in a large number of refugees, if necessary.
“Our ability to absorb and to bring Ukrainian refugees into our communities, into our homes, we have a capacity to do this on a very large scale,” he said.
As well, he said he is concerned about the living conditions and food supply in other countries that rely on Ukraine’s agricultural experts. He pointed to Lebanon, which is going through its own humanitarian disaster and relies on Ukrainian food for nearly half of its population’s caloric intake. Yemen and Libya are two other countries that rely heavily on Ukrainian grain exports, and a shortage of those products could cause dangerous spikes in food prices.
As a prominent member of Toronto’s Ukrainian community, Mr. Wrzesnewskyj has experienced his own share of aggression. One location of the bakery, which was founded by his grandparents, was vandalized with pro-Russian graffiti earlier this month.
“It was more than an attempt at vandalism,” Mr. Wrzesnewskyj said. “It was an attempt at intimidation. … The messaging that was spray-painted was hateful and clear in what it was saying.”
However, he said he did not believe the attack to be reflective of the Russian-Canadian community as a whole, only of some individuals who had been influenced by the propaganda of Mr. Putin’s government.
Mr. Wrzesnewskyj also said he was hopeful that Western countries would place a full economic embargo on Russia and make sure that Mr. Putin could not channel funds through other, third-party countries. He also urged the Canadian government to cancel the domestic broadcasting licence of RT, a Russian state-controlled television network.
As Ukrainian-Canadian organizations begin to organize fundraisers, some members of the community are rushing to send money directly to their loved ones.
Taras Pidzamecky, chief executive officer of the Ukrainian Credit Union Ltd., a Canadian credit union that serves members of the Ukrainian community, said he has seen a sudden surge in members wanting to wire money to family abroad.
He said the credit union is trying to quickly check on the status of the banking system in Ukraine, but that it is still not clear what is functioning.
“We just want to be careful, for example, that somebody doesn’t try to send some money and then it gets stuck somewhere because there’s nowhere to land or there’s been a disruption at the other end,” he said.
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CUCC is working with Canadian Chambers of Commerce, Business Associations and businesses to provide assistance and aid for Ukrainian businesses operating during this time to support Ukrainians and the Ukrainian Army.
Statement of Canada-Ukraine Chamber of Commerce President, Zenon Potichny
Dear Members of Canada-Ukraine Chamber of Commerce,
In this challenging time, Ukrainians demonstrate unity in their views, actions and ability to withstand constant threats. And we at Canada-Ukraine Chamber of Commerce stand united with all Ukrainians. We are closely watching the developments in Ukraine and the reaction of Western allies to the aggravation of the situation in eastern Ukraine due to Russia’s violation of fundamental norms of international law and the territorial integrity of Ukraine. Our team does everything possible to continue cooperation between Canada and Ukraine and help our members with our advice and support. We understand the difficulties you face conducting and developing business in Ukraine under current circumstances. It’s no surprise that because of Russian aggression, the economic situation in Ukraine is being shaken. Given the rapid and unpredictable developments, our team is ready to support companies forced to relocate their offices from eastern parts of the country to other cities of Ukraine. Please keep in mind that members and partners of CUCC have the opportunity to use the services and facilities at our Kyiv office. For more information and other inquiries, please contact:
- aturos@cucc.ca or call +38063-390-2131 – in Ukraine
- info@cucc.ca or call +1416-253-6700 – in Canada
Slava Ukraini! Glory to Ukraine!
Zenon Potichny
President of Canada-Ukraine Chamber of Commerce
#UAразом #StandWithUkraine #МиРазом #ДеньЄдності #лютий_в_Україні #russian_aggressian #occupiedDonbas #supportUkraine #Ukraine #StopPutin #CUCC
Statement on Security situation in Ukraine by ICBAC
In this crucial time for Ukraine, realizing the complexity of the situation around the country, on behalf of the International Council of Business Associations and Chambers (ICBAC), that encompasses nine foreign trade associations which represent the largest trade partners of Ukraine and UCCI, in total more than 9 thousand companies, we would like to express our strong support for Ukraine, its business partners and for all Ukrainian people
In the conditions of the ongoing pressure on Ukraine, members of the International Council of business associations and chambers, while implementing and adhering to their main mission – representation and protection of business interests of foreign and local investors in Ukraine, are aware of the possible unfavourable consequences for Ukrainian economy that may be caused by the escalation external situation and declare their solidarity in expressing support to Ukraine and in a further common desire to expand and enhance the international trade cooperation with Ukrainian partners, which to date has reached a total of almost $ 50 billion.
We continue working in Ukraine and together with our Ukrainian partners, we will work to strengthen Ukraine’s economic potential and sustainability.Our common goal is to confidently, consistently build and strengthen economic bonds between Ukrainian businesses and partners from other countries, promote a favourable investment climate, and intensify dialogue with the authorities and the government.
The statement was signed by the leaders:
American-Ukrainian Business Council,
British-Ukrainian Chamber of Commerce,
Canadian-Ukrainian Chamber of Commerce,
Chinese Trade Association,
International Turkish-Ukrainian Business Association,
German-Ukrainian Chamber of Commerce and Industry,
French-Ukrainian Chamber of Commerce and Industry,
Ukrainian-Austrian Association,
Swedish Business Association,
Chamber of Commerce and Industry of Ukraine
CUFTA Modernization discussion in the Parliament of Canada
On February 16, 2022 the President of the Canada Ukraine Chamber of Commerce Zenon Potoczny delivered remarks and CUCC position on the modernization of the Canada Ukraine Free Trade Agreement. This was done during the seating of the House of Commons Standing Committee on International Trade.
For almost five years, Canadian and Ukrainian businesses and investors have benefited from the provisions of the FTA. Since it came into force on August 1, 2017, CUFTA has laid new foundations for trade, growth, and investment in both countries. According to the State Statistics Service of Ukraine, in 2021, the volume of bilateral trade in goods between Ukraine and Canada increased by 49.3% to almost $373 million, exports of Ukrainian goods doubled to $144 million, imports of Canadian goods increased by 27.4% and amounted to $228.5 million. And despite having positive dynamics of increasing overall bilateral trade volumes, there is still a lot of potential and possibilities to diversify trade.
Canada-Ukraine Chamber of Commerce conducted consultations with our partners, members and additional stakeholders that benefit from or may benefit from certain new implementations in Canada-Ukraine Free Trade Agreement. As a result of our findings, we proposed that Cross-border Trade in Services, Investment, Immigration matters, and elimination of non-trade barriers are areas that would benefit Canadian companies doing business in Ukraine.
Additionally, we emphasized that CUFTA still needs more promotion among Canadian businesses, and CUCC is constantly working towards more awareness.
The full translation is available under the link https://parlvu.parl.gc.ca/Harmony/en/PowerBrowser/PowerBrowserV2?fk=11515238
Meeting with the Business Ombudsman of Ukraine – Amb. Roman Waschuk
#STANDWITHUKRAINE
Canada-Ukraine Chamber joined the #StandWithUkraine campaign by Ukrainian Canadian Congress.
The Campaign is called to show support for the Ukrainian peoples’ right to live free and in peace in their own land.
“The Ukrainian people need our help defending their freedom and their country. Russia’s imperialism is a threat not only to Ukraine, but to European peace and global stability,” stated Alexandra Chyczij, National President of the UCC. “Canada and our allies need to stand with Ukraine and stand against Russia’s aggression.”
For eight years, the Ukrainian people have bravely defended their country against brutal Russian aggression, as Russia once again seeks to colonize Ukraine. Over 13,000 people have been killed, over 1.5 million displaced. Today, Russia is massing troops and weapons near Ukraine’s borders and on occupied Ukrainian territory and threatening to invade further into Ukraine.
Ukrainian diversified projects will be presented at the international investment exhibition in Cannes
On March 15-18, 2022, global real estate players in Cannes will gather at MIPIM (Fr. Le Marché International des Professionnels de l’immobilier – an international fair of real estate professionals).
MIPIM is the #1 Investment event that gathers the most influential players from all sectors related to intelligent urban development, investments in PropTech, infrastructure, and classical and alternative real estate. The event gathers over 26 000 participants, including 6 000 investors, 560 political leaders from 100 countries.
The exhibition has been taking place since 1990. Ukraine has been represented at MIPIM for over 15 years by cities, companies, and various projects. For the last three years, the Ukrainian market has been represented by Kyiv City, headed by Mayor Vitalii Klitschko and supported by the local business community.
For five years now, Ukrainian real estate players have been gathering around the Ukraine initiative at MIPIM (under the name Ukraine at MIPIM), which has become an integral part of participation at investment exhibitions.
“This is an example of uniting real estate players to adequately present the Ukrainian market and the Ukrainian brand in general on the international arena. Our task as organizers is to follow global trends, the focus of international companies, and maintain communication with foreign players to adapt the Ukrainian program to MIPIM,” Principal of the Invest in Projects agency, co-organizer of Ukraine at MIPIM Anna Nestulia says.
Anna adds that critical trends observed in global markets are:
- The transformation and digitalization of offices and the urban environment.
- The development of logistics real estate.
- The growth and diversification of the housing market.
In addition, the topics of ESG (ecology, social responsibility, and governance) and sustainable development remain a separate powerful focus for foreign companies, particularly investors.
“In 2022, the exhibition’s main theme will be Driving Urban Change,” says Dmytro Dopiro, MIPIM representative in Ukraine. – The fight for clean air, solving transport problems, comfortable living, working and labor conditions for citizens – the global community will discuss all this at numerous conferences at the exhibition. MIPIM 2022 will take place from March 15 to March 18, and we invite everyone to join the collective stand of Ukrainian companies at MIPIM.”
“The speed of serious transformations in numerous segments of the economy, as well as the importance of eco-systems, is growing at an increasing rate, and such positive changes can be observed in Ukraine as well, – says Yuriy Kryvosheya, President & Managing Partner at Toronto-Kyiv; Head of Supervisory Board of Ukraine at MIPIM. – Taking into consideration the amazing potential of our market, we can and should make proper steps forward to not only participate in such transformations but even to lead such certain positive changes and innovations. Today, Ukraine gives birth to innovative products & technologies, and, often, the property & RE market serves as the infrastructure and platform for their subsequent application & usage. Thus, it is time to move forward onto the next level of overall development in a synergetic manner. MIPIM, in addition to being one of the top global stages for investor relations, provides instruments to the aforementioned improvements and provides exposure to additional ideas, all of which have the potential to launch a positive virtuous cycle. We just need to act, and to do so together!”
Ukraine at MIPIM – who will participate
The composition of the Ukrainian delegation at MIPIM 2022 includes leading companies in the market. They implement innovative ideas and consistently transform the urban environment.
Among the Ukrainian delegates for MIPIM 2022 Promprylad.Renovation, Toronto-Kyiv, TK Property Management, Q Partners, UDP, Altis Holding, LvivTech.City, Dragon Capital, Intergal Bud, Midland Development, Delta, STRIX, M4U Estate, Masnavi Capital, Mandarin Plaza Group, Creator City, STOIC Group, Ol.Factory, One Love Espresso Bar, CBM Forum, Arricano, LUN, KC Hospitality Solutions.
Holiday Inn Kyiv is a special hospitality partner for Ukraine at MIPIM official presentations, conferences, and press events in Kyiv before and after MIPIM.
Diplomatic institutions, business organizations, and associations support Ukraine at MIPIM. The Embassy of Ukraine in France, EBA, Canada Ukraine Chamber of Commerce, and Ukrainian Real Estate Club is among them. Kyiv City is an official partner for the Kyiv representation.
ЛУН (Lun.ua) has become an exceptional partner and co-host of the events dedicated to investments promotion of residential real estate in Ukraine. This year the company will present its residential real estate outlook on Ukraine for the international business community.
More about Ukrainian projects to be present at MIPIM
Promprylad.Renovation (Ivano-Frankivsk)
Promprylad.Renovation is an innovation center on the premises of an old plant. It focuses on four areas of region development — new economy, urban design, contemporary art, and education. The project follows the impact investing model, where investors contribute to social changes in the region and get a return on investment in the form of dividend payouts.
As of January 2021, the amount of investments in the project is over $ 10 million. The number of investors surpasses 1 000 people.
Residents of Promprylad. Renovation is a harmonious ecosystem built on the interaction between all functions.
The pilot floor is a model of what the innovation center will look like in the future. There are both commercial and development functions. This neighborhood already illustrates the importance and effectiveness of interaction in the triangle “community – business-government.”
СЕО Promprylad.Renovation Yuriy Fylyuk says that they see a global trend – ecosystem approach to the projects in the project.
“In conditions of the pandemic, of course, everyone should strengthen both various safety protocols and requirements to have more adaptive and flexible spaces. Thus, during the design of the next stages of the projects, we focus more on these criteria to change and adapt spaces to various needs easy,” says Yuriy
For Promprylad.Renovation teal MIPIM is an opportunity to inspire, learn, and establish new contacts for possible future collaborations.
“As a country in general, we must be present at platforms such as MIPIM to form our position on the world map and to become an active player, in particular, in the development as one of the most critical sectors of the economy of any country.
Promprylad.Renovation is a successful case of attracting many international investors in projects and the city in general. According to the CEO, the team follows strict and clear principles in working with international partners. It is transparency, consistency, and long-term prospects.
Renovation of the Arsenal plant (Kyiv)
It is a renovation and redevelopment of the historical buildings of the former military Arsenal Plant. Today it is the new landmark of the capital city of Ukraine. The dull old area has turned into a friendly public space. Historical buildings got new up-to-date functions meeting the requirements and needs of the residents.
Located in the very center of the capital city of Ukraine, the former industrial area and military giant have become the most attractive place for people today. It offers Kyiv Food Market, coworking Creative States, education center Osvitoria hub, and most importantly, a lot of inclusive, open public space.
“We believe that projects like Arsenal will be successful as they meet the key requirement of the society – social. In terms of investments, it means stable and predicted demand,” says Andriy Semenov, Managing Partner & CBDO of Q Partners.
In 2021 during privatization auction, UDP, in consortium with A Development, acquired Bilshovyk Plant (35 ha of the first Kyiv Machine-Building Plant). In Soviet times, the plant produced stationary machines and equipment for the chemical, coal, oil industries, and subway construction. The production was unique and exclusively custom-made. Now, out of 36 workshops, only two are operating. Part of the property is leased; the rest is simply destroyed.
New owners learn several concepts offered by Ukrainian and Polish architects. Also, the company will involve world-known architects.
Andriy Semenov shared plans for the future of the Bilshovyk Plant.
“We are working now on the key concept of the project, which will include creative, social, and economic components; in particular, we evaluate all risks. A project like this requires a complex approach.”
The realization of such large-scale projects takes about 10 – 15 years.
Metropol Plaza і Metropol Residences (Kyiv)
Metropole is a mixed-use project in Kyiv developed by Altis Holding. The project combines three towers connected by the central green rooftop plaza with Al Fresco-styled terraces and outside gardens making it an authentic vertical village. The project includes residential, offices, retail, and leisure functions. The architect of the project is the French award-winning bureau VASCONI. The architect’s key focus is integrating nature into the heart of the city based on live work play principles. The plaza is dominated by the first in Ukraine world-known UNESCO Artist Hedva Ser “Tree of Peace” standing within the water mirror.
According to the principal architect of the project, the city of tomorrow will use past patterns, i.e., enhancing close walkable distance between workplace and residence in a district offering a living space mixing retail, workspace, living, and space for relaxation – while engaging a close interconnection between the metropolitan cities worldwide.
Kyiv is a metropolitan city with a stunning historical heart that is challenging the traditional European city by integrating into its very heart green spaces, vast public spaces, and a stunning historical heritage while integrating a new high-rise skyline within its historical compounds.
LvivTech.City (Lviv)
LvivTech.City is a community that brings together leading technology and innovation companies, R&D centers, incubators and accelerators, entrepreneurs, and young startups developing and integrating to create an innovations cluster, a shared ecosystem for urban development. And most importantly, it is an environment of like-minded people, comfortable space, and special services allowing resident companies to focus entirely on work and the capitalization’s growth. We strive to build a system that will facilitate continuous interaction and communication between the residents to achieve a synergy effect in all areas.
LvivTech.City offers its residents offices, apartments, IT school, and additional services and amenities.
The project’s investor is UFuture, the developer of the projects is UDP, project’s architect is the Polish architectural bureau APA ARA Wojciechowski.
Vitalii Melnyk, Vice President of UDP, head of Innovation Parks Development, is an active participant and supporter of Kyiv and Ukraine at MIPIM.
“We are happy that after several years of a break to present Europe and the world Ukrainian best projects.
We will showcase the first innovative park in western Ukraine, LvivTech.City. Particular focus on how developers ecosystem projects can impact global things such as slowdown of IT labor migration from countries and transformation of the economy from local into innovative, which is the primary goal of the innovation parks we develop.
Our goal at MIPIM 2022 is to present Ukraine as a center of innovations in Europe and demonstrate development projects worth the attention and trust of foreign investors.
You can join the Ukrainian stand at MIPIM. The team of organizers is working on the program and promotion of the Ukrainian delegation at the main investments exhibition which will take place in Cannes from 15 to 18 March.
Заявки на участь у виставці MIPIM тривають. Команда організаторів працює над програмою та посиленням присутності української делегації на головній інвестиційній виставці, що пройде в Каннах з 15 по 18 березня.
Please email us for more information
- Dmytro Dopiro, representative of MIPIM in Ukraine, d.dopiro@gmail.com
- Anna Nestulia, organizer of Ukraine at MIPIM, anna@investinrpojects.pro
Partner’s information
Our official partner, Holiday Inn Kyiv, provides not only accommodation for their guests but also creates the necessary conditions for conferences, lectures, presentations, banquets, and other events. In October 2021, the hotel held a grand opening of the new conference hall «Malevich», with an area of 105 m2. The hall seats up to 90 people and it is equipped with new technologies: projector and large screen, built-in audio system, climate control system, flipchart with markers, and more. Holiday Inn Kyiv appreciates Ukrainian historical monuments and their authors, and that’s why the conference hall is named in honor of the outstanding artist, Kazimir Malevich. Also, the view from the window on the church of St. Nicholas creates an impression. By the way, at Holiday Inn Kyiv is available another conference hall «Gorodetsky», with an area of 69 m2, that is named in honor of the architect of the majestic Church of St. Nicholas.
For more information regarding the organization of the events at the Hotel, please contact:
⁃ iryna.orlova@ihg.com ⁃ +38 044 363 30 00