Ukrainian companies are increasingly stepping beyond the domestic market, but the success of international expansion is determined by more than ambition alone. Financial preparation, a well-designed management structure, and understanding regulatory requirements become the key factors that turn expansion abroad into a growth story rather than a series of costly mistakes.
Ukrainian business is no longer purely local. After years of turbulence, entrepreneurs have grown accustomed to working under uncertainty but have preserved what matters most — the willingness to act. Today, more and more companies are looking beyond the country in search of new markets, partners, and sources of capital.
However, international expansion is not just about ambition. It is a complex strategic process in which financial planning determines whether entering foreign markets becomes a success story or a collection of errors.
Companies in the umgi portfolio have opened offices in nine countries over the past five years — from Poland and Spain to Turkey, Serbia, and India. This experience has shown that financial preparation is one of the strategic factors behind successful expansion.
Financial Architecture — The Foundation of International Development
A common mistake among Ukrainian companies is treating the financial function as secondary. Registering a company or signing a contract does not mean the start of actual business operations. Without an established financial infrastructure — payment tools, reporting processes, controls, risk management — expansion remains theoretical.
The first strategic decision when entering new markets is choosing the model for the financial function: an in-house team or outsourcing. In Ukraine, businesses traditionally prefer full control — doing everything independently “under one roof.” But internationally this is often inefficient: high labor costs, difficulty verifying competencies, and differences in tax and accounting standards make this approach slow and expensive.
Most European companies outsource financial processes. This approach can be optimal when processes are organized properly. Its advantages include faster launch, access to local expertise, and flexible scaling. At the same time, it requires systematic oversight. Outsourcing operations does not mean outsourcing responsibility. Control, regular data reconciliation, and a clear understanding of local requirements must remain within the business.
Banking Infrastructure and the Payment Function
Opening bank accounts may seem like a technical step, but it often determines the moment when a business can actually begin operating. Without a bank account, a company exists only legally.
Opening bank accounts in EU countries may take from several weeks to several months. KYC requirements, verification of capital origin, and increased transaction monitoring significantly complicate the process. Therefore, it is advisable to begin cooperating with international banks while still in Ukraine. If a bank has subsidiaries in target countries, an existing relationship in the home market makes opening accounts abroad much easier and faster.
At the same time, companies should plan for backup scenarios. A bank’s policy change, risk model update, or even technical issues may result in temporary account blocking. To avoid operational downtime, it is wise to have at least two accounts — in different banks or payment systems.
Payment systems can serve as an effective first step into new markets. They enable quick account opening with local details (IBAN, SWIFT, SEPA), support international payments, and integrate with accounting platforms.
In several countries — including Italy, Turkey, and India — legislation requires companies to have a local bank account for tax or currency control purposes. This requirement should be considered during financial modeling to avoid unexpected delays and additional costs.
Regulatory Differences: Attention to Detail
The European Union is often perceived as a unified economic area, yet tax and legal requirements differ across countries. Variations in VAT rules and company registration procedures can significantly impact the financing needs for launching operations in a given country.
In our practice, deep knowledge of local legislation enabled us to free up more than one million euros in working capital by utilizing a simplified customs regime. Examples like this demonstrate that investments in local legal expertise are not expenses but elements of risk management. Alongside taxes, it is crucial to account for requirements related to data protection (GDPR), anti-money laundering (AML), and reporting in each jurisdiction.
Funding Sources: The European Context
Financing international growth for Ukrainian companies opens opportunities for a broader approach than traditional secured bank loans. Europe offers well-established programs supporting small and medium-sized businesses with grants, concessional loans, or unsecured lending.
The European Fund for Strategic Investments (EFSI) and InnovFin provide financial support to companies that create jobs or implement innovative projects. In some countries, the government may reimburse up to 80% of investment costs if a project has significant environmental or social impact.
Other available instruments include factoring, corporate bonds, and unsecured loans. These tools become realistic only when a company has a transparent ownership structure, high-quality reporting, and a clear business model.
European financial culture is built on trust and predictability. For investors and banks, not only profitability matters but also the quality of management, internal controls, and ethical reputation.
The Human and Cultural Factor
Cross-cultural differences can be as significant as financial indicators. Differences in communication styles, perceptions of time, responsibility, and priorities directly affect the effectiveness of collaboration.
Ukrainian teams working in Europe often assume that formal meetings are sufficient. In many countries, informal interaction is part of business culture, and without it, building trust is difficult. In one of our cases, a lack of informal communication between the local and Ukrainian teams resulted in misalignment and delays in key processes.
An effective CFO in an international environment must be not only an analyst but also a communicator, able to switch between cultures as confidently as between currencies.
Ukrainian companies have already proven they can be competitive. The next step is to act systematically: plan financially, manage risks, and maintain transparency standards. It is financial maturity that will determine who succeeds in staying on new markets for the long term.
The source: delo.ua