Factories, Funds Flow to Ukraine

KIEV, Ukraine -- Japanese companies, particularly automakers, are increasingly looking at Ukraine as both a manufacturing base and a market.


The growing attention is attributable largely to the improving investment environment led by the inauguration of a pro-Western government.

The size of its economy, the second-largest among the former Soviet republics after Russia, is also attractive to Japanese companies.

The Japan Association for Trade with Russia & Central-Eastern Europe, which consists of financial institutions, trading houses and manufacturers, sent its first mission to Ukraine in October.

The delegation was made up of about 30 participants, including Tasuku Takagaki, adviser to the Bank of Tokyo-Mitsubishi.

They were greeted by Prime Minister Yuriy Yehanurov, who said he hoped that Japanese businesses would increase their presence in his country.

Separately, President Viktor Yushchenko agreed with Prime Minister Junichiro Koizumi to strengthen bilateral ties when he visited Japan in July.

Isuzu Motors Ltd., which already operates a bus production plant in Ukraine, plans to start truck assembly there.

The truck maker expects to use the country as a base for exports to former Soviet republics.

Nissan Motor Co., which set up a sales company in Ukraine in March, plans to begin selling its Infinity line of luxury passenger cars at the end of 2007.

Company officials said the country's economy is expected to expand.

Ukraine is becoming a key investment destination because the country is expected to join the World Trade Organization soon.

The country could also offer a springboard for neighboring markets, such as Poland, which has joined European Union.

Source: The Asahi Shimbun