Ukraine: 56 Greek Companies Threatened

The volatile situation in Ukraine has caused grave concern for the 56 Greek companies operating in the country, as it is believed that the first victims of the crisis will be export companies.

In 2013, Greek investments in Ukraine amounted to 446 million dollars. However, most companies’ turnover is now decreasing, and after the Russian threats concerning the closing of gas valves in the country, companies are worried about their production, which has already been reduced.

According to Greek news, the first victims of the crisis and the threat of war in Ukraine were export businesses, which had shown an upward trend in 2013. However, the current uncertainty in combination with a 20% fall in the Ukrainian currency since November, has reversed the situation. European products have become less competitive, as they are unaffordable.

Which sectors are facing problems?

The businesses that seem to be most affected cover 80% of Greek exports to the country, such as fossil fuel, fruit, vegetable preparation and tobacco companies.

As far as the banking sector is concerned, the exposure of Eurobank, Alpha Bank and Piraeus Bank in Ukraine is limited to networks of subsidiaries with 20 branches per bank. In 2007 Eurobank acquired Ukrainian Universal Bank and Piraeus Bank acquired the majority of Ukrainian International Commerce Bank; and in 2008 Alpha Bank acquired 90% of Astra Bank.

Furthermore, Greek entrepreneurs operating in Ukraine are perplexed and anxious about their future in the country. The crisis has caused a 25% reduction in turnover.

The most important of the 56 Greek companies operating in Ukraine are:

Coca-Coca Hellenic
Yioula
Chipita
ETEM
Profilco
Grecotel
Alumil
Systems Sunlight
Balkan’Cyclon Hellas
Piraeus Bank
Eurobank