Q&A with Andrea Raffaseder, President and CEO of Siemens Ukraine
Andrea Raffaseder is the President and CEO of Siemens Ukraine. She started her professional career in the Russian Federation as a deputy director of the Moscow office of VOEST-ALPINE (headquartered in Linz, Austria), which was at that time Austria’s largest industrial group incorporating iron and steel production, as well as various machine building and engineering divisions. The office was responsible for the whole former Soviet Union, with projects mainly in the Russian Federation and Ukraine.
Later on, Raffaseder worked in the engineering company TRAUB-HECKERT Vertriebs GmbH, where she served as vice president of Eastern Europe sales. With the SIGMA PLAN group of companies, she was a member of the Marketing Board, Sales and International Projects.
Before becoming CEO with Siemens Ukraine, Raffaseder served as the first vice president in the Austrian company EBG GmbH & Co. and was responsible for its Central Region (incorporating Upper Austria, Southern Germany, Russia, Hungary, Czech Republic, plus exports into various countries). In 2005, VA TECH ELIN became a part of Siemens AG.
Business relationships between Ukraine and Siemens trace back to the company’s earliest days. In 1855, only eight years after its founding, Siemens opened its first engineering offices in the Ukrainian cities of Kyiv and Odessa to service telegraph lines linking Finland, St. Petersburg and Moscow with Kyiv, Odessa and the Crimean peninsula. The company established its first official representative office in Ukraine in 1992. Siemens Ukraine was founded in 1997 and is represented in seven cities across the country.
In her interview with the Post, Raffaseder said that strong government control over business activity, which is still prevalent in Ukraine, hinders significant improvement in business conditions.
KP: Please describe the main focus of Siemens’ operations here in Ukraine.
AR: Siemens has been growing substantially since the country’s independence in 1991 and now holds leading positions in the three application fields: Energy and Environmental Care / Automation and Control, Industrial and Public Infrastructures / Healthcare. Siemens IT Solutions and Services operates in all three fields. Our company is the major international player in the market for industrial and public infrastructures, and is also one of the largest suppliers of medical equipment, automation. It drives technology and power transmission and distribution products in Ukraine. Siemens Ukraine has considerably strengthened its position as the leading supplier of metallurgy systems.
KP: Can you say that the business environment for your company has changed for the better or worse in recent years?
AR: Unfortunately, no special changes occurred in business conditions in Ukraine. The state’s total control over business, as before, is astonishing. That is especially reflected in the accounts department. The quantity of papers which I have to sign daily for accounting reporting does not surprise me now. However, I want to note that in spite of all the business-conducting complexities in the country, the economy continues to grow at high rates and that is also positively reflected in our results.
KP: Generally speaking, is the investment climate favorable for German businesses operating in Ukraine? What about your company’s experience?
AR: I can admit a number of positive achievements, however I realistically have to note that the problems that all investors (not only German!) still encounter today are long known issues: timely and complete VAT refunds; clear procedures for land acquisition; abuse of legitimately acquired property rights, the weak and dependant judiciary, improper business practices, etc. Above all, it is necessary to underline that the biggest barrier today is the lack of a stable and predictable legal and political environment. As we all perfectly know, the country requires resolute and sustainable legislative actions aimed at eliminating the identified and acknowledged barriers to investment in Ukraine. A proven track record of positive action will enhance the economic future of Ukraine, ensure existing investments and encourage new ones.
Ukraine’s WTO accession is of paramount importance, not only for recognition of Ukraine on the international economic arena, but also as one more step to drive full establishment of fair and even business practices for all market players, since adherence to WTO rules will ultimately lead to transparent and unprivileged competition.
KP: Please outline briefly some of the most important tendencies taking place in Ukraine today.
AR: I already said that Ukraine’s economy is growing and that’s positively reflected in our business.
Our company realized and it continues to realize large scale projects in metallurgy. First of all, the Alchevsk metallurgical industrial complex is almost completely reconstructed and without production cessation. The transportation division also is of great interest. We supply Ukrzaliznytsia (Ukraine’s railroad monopoly) with electrical equipment for 100 locomotives. Today, we conduct serious negotiations with Ukrzaliznytsia about similar projects for other types of locomotives. The state announced serious modernization plans for the energy, transport and medicine spheres of the economy. Private investment is also showing increased activity. Recently, we won the tender for modernizing one of the Kurahovska power stations. Great opportunities have been given us by a boom in logistics complex construction. For example, a logistics center technical equipment complex near Kyiv was recently signed.
KP: What are the major problems your company faces today in Ukraine? Are there any specific problems for German businesses operating in Ukraine?
AR: The demand for Siemens’ products and services is growing. I hope the financial possibilities also grow. I wish to note that the quantity of international investors in Ukraine, who order large deliveries, have been growing positively.
The decision for Ukraine to host the finals of the 2012 European Football Championship together with Poland could lead to a major breakthrough in investment activity – both foreign and local. Opportunities are enormous but need to be legitimately exploited. There is a critical need for an appropriate set-up to be put in place by the Ukrainian government. Then, this major event will have a huge positive effect on capital formation and investor trust in Ukraine.
KP: What are Siemens’ short and long-term plans in Ukraine?
AR: The company has very good possibilities. Siemens is one of the largest foreign employers in Ukraine. Siemens has created more than 700 jobs in the country. Today we deliver equipment from different Siemens factories worldwide. Considering the Ukrainian market is growing, in the foreseeable future it will let us manufacture here. Moreover, the “Science to Business” program works efficiently in Ukraine, with the purpose of training new engineers. They are involved in projects both in Ukraine and abroad.
KP: Can you give a short forecast as to what tendencies will determine the electronic equipment and appliances market in Ukraine in the near future?
AR: We have the most optimistic views for the development of electrical engineering and electronics market in Ukraine. The country is on the threshold of large modernization. Therefore, the electronic equipment market will develop at a high rate.
