Oleksiy KredisovBirth: 1972Nationality: UkraineJob: Managing partner of EY Ukraine and co-chair of emerging markets center EY GlobalHow to succeed in Ukraine: "Try not to make mistakes. In a very volatile high-risk environment making a mistake would be very painful and more noticeable than making a great gain. In our business it is crucial to have the best people because the firm's success depends on their professionalism and talent. There should be a combination of having a highly motivated team and being innovative... Doing business in Ukraine is a long-run game. If you are not prepared for a long-run it will be very difficult."
Editor’s Note: In 2015, the Kyiv Post will offer more coverage of the leaders who run Ukraine’s biggest and best companies in the CEO Watch feature.
To tackle the economic crisis, Ukraine has to confront the problem of offshore firms, which many in business prefer because of lower taxes, says Oleksiy Kredisov, head of EY Ukraine, an international audit company.
Kredisov says the government should not fight offshores, but instead do a better job enforcing transfer pricing legislation.
Also, the head of EY Ukraine says businesses should adopt International Financial Reporting Standards, a set of rules on presenting financial information. “The IFRS is the language that international business speaks. Anything else creates confusion,” he says.
Kredisov sees some progress in the banking sector, but not universally.
Although he respects the new government filled with a new generation of ambitious politicians, Kredisov is unhappy with the political leadership. Reforms should have been done faster and sharper, he adds. “In a situation like this – if you risked your career, reputation, everything – go and fix it!”
For now, investors are bothered by Russia’s war against Ukraine, the potential of default on debts and the future of cooperation with the International Monetary Fund. Even after those questiosn are resolved, large-scale investment will still take time, warns Kredisov.
As of now, EY employs 500 people in Ukraine – down from its peak in 2008 of close to 700 people. The only office is in Kyiv, with the Donetsk branch shut down because of the war. Employees were transferred abroad or relocated to Kyiv. “We assisted their move, their families, provided some support and employment,” he says.
Having obtained a master’s degree in business administration from America’s Virginia Polytechnic Institute in 1995, he joined EY in 2002. The company entered Ukraine in 1991, the year that the Soviet Union collapsed.
His advice to businesspeople in Ukraine?
“Go beyond the borders,” suggests Kredisov, pointing to such countries as Kazakhstan, Azerbaijan, Georgia, Belarus, Turkey and even Russia as destinations that EY Ukraine is involved in.
EY provides services in assurance, audit, tax, transaction and business advice. Globally, EY has 190,000 workers based in 150 countries.
The company’s Ukrainian branch has thousands of clients. Diversification of services is one of its key principles, explains Kredisov. For example, audit and statuary valuations performed well in 2014, whereas other services such as tax and transaction support didn’t do so well.
The bulk of revenue comes from multinationals, large private Ukrainian companies such as Interpipe Group Holding, state-owned Ukrainian Railways, major banks as well as the National Bank of Ukraine. The company’s total net revenue in Ukraine in 2012 was Hr 296 million compared to Hr 372 million in 2011. Revenue for 2013 and 2014 were not available.
A big fan of wine, Ukraine’s EY CEO also co-runs a 20-hectare winery in Georgia. He travels extensively. In addition to Ukraine, he has lived in Russia, U.K., and the U.S. He also is on EY’s global assignment project in addition to his Ukraine position. “I have good mileage on my cards,” he says. His wife and two daughters live in London.
Kyiv Post staff writer Ilya Timtchenko can be reached at [email protected].
