Ukraine Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in ukraine, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Distribution and Sales Channels
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Distribution 

Most Ukraine’s domestic and international cargoes are transported via rail or truck. However, seaports are also important as Ukraine exports half of all exports and 90% of agricultural products via sea and river corridors. 
There are two types of customs bonded warehousing in Ukraine: 1) customs bonded warehouses, and 2) temporary storage customs bonded warehouses. An importer can use the latter to temporarily store goods that are subject to certification, awaiting sanitary, environmental, or other entry approvals, or awaiting customs clearance in Ukraine. 

Like all countries, Ukraine monitors import-export flows that pass through its borders. The current Ukrainian customs regulation mandates to execute customs declarations for export or import operations. Refer to a list of licensed Ukrainian customs brokers.

Sales Channels

According to the Ukrainian State Statistics Service, Ukraine’s retail trade turnover in 2020 was UAH 1,202 billion ($45 billion), 10% growth compared to 2019. Less than half of the overall retail market is controlled by chains, reflecting the considerable development opportunities in Ukrainian retail. 

Fast Moving Consumer Goods (FMCG) – Retail superstore chains are available in the main Ukrainian cities and primarily specialize in FMCG, consumer electronics, Do-it-Yourself (DIY), automotive parts and accessories, cosmetics and toiletries, pharmaceuticals, and health care goods. 

The major international investors in the Ukrainian retail FMCG market are METRO GROUP (Germany), Auchan (France), Consul Trade House UAB (Lithuania) and Spar (Netherlands). In 2020, REWE Group completed the sale of its Billa supermarket chain in Ukraine to UAB Consul Trade House, the owner of Novus Ukraine – one of the leading Ukrainian food retailers. Billa was the first international food retailer to open in Kyiv in February 2000 and had since grown into a network of 35 supermarkets in the broader Kyiv region and Zhytomyr. The top four national FMCG retailers in the market are the Fozzy Group, ATB Market, Retail Group, and Furshet. 

Regionally, the top retailers include: Tavria V and Kopeika in southern Ukraine; LotOK in northern Ukraine. 
The most popular FMCG outlet formats that opened in Ukraine in recent years include discounters, convenience (corner) stores, and supermarkets. Despite the ongoing war, the Ukrainian retail market has remained active, with new international brands continuing to enter the market and expand their presence. In 2024–2025, several international brands opened their first stores in Ukraine, for example:

  • Karl Lagerfeld Jeans (France/Germany) opened its first store in Ukraine at Ocean Plaza in Kyiv in January 2025
  • UGG (USA) opened its first flagship store in Kyiv in 2024
  • Captain Candy (Czech Republic) launched a franchise confectionery store in Kyiv
  • Mavi (Türkiye) entered the Ukrainian market with new retail locations
  • HalfPrice (Poland, CCC Group) expanded its presence with additional stores in Kyiv shopping malls.


At the same time, several major global retailers resumed or expanded operations in Ukraine. In particular, Swedish brand H&M resumed operations in 2023, while the Spanish Inditex group (including Zara and other brands) began reopening stores in Ukraine in 2024, signaling gradual recovery and renewed investor confidence in the Ukrainian retail sector.

  • Consumer Electronics and Household Appliance Chains: currently, the largest household appliances and electronics market players are Foxtrot, Eldorado, and Comfy. These chain operators sell most of the consumer electronics and household appliances through their retail outlets located throughout Ukraine. 
  • “Do-It-Yourself” Chains: The national chain Epicenter continues to dominate Ukraine’s DIY retail market, maintaining a leading position with an estimated market share exceeding 50%. Among international operators, Leroy Merlin (part of Groupe Adeo) has a limited presence, with operations concentrated in Kyiv and no significant expansion observed in recent years, reflecting broader economic and security constraints in the market.
  • Branded Apparel and Footwear: Multiple national premium fashion outlet chains sell branded clothing and footwear including Argo, Helen Marlen Group, and Melon Fashion Group, Intertop is a Ukrainian chain for branded footwear. Automotive Parts and Accessories Chains - Three nationwide chains, Auto Trade Line (ATL), ZipAvto, and AIS, along with numerous independent retail outlets sell car parts and accessories. There are also regional wholesale chains like Planetauto, Stop-Transit, Pitstop, and Avtosvit.
  • Beauty and Toiletries Chains: The top four nationwide beauty chains in Ukraine include Eva (560 stores), DC-Watsons (440 stores), Prostor (280 stores), and Kosmo (106 stores). 
  • Drug (Pharmacy) Chains: Pharmaceuticals are sold through more than 21,000 private and municipal pharmacies and pharmacy retail points. Private pharmacies dominate 87.5 % of the market, while the remaining 13 % of pharmacies are owned by municipalities. Many regions and municipalities have been looking to expand or launch so-called ‘social pharmacies,’ which stock essential medicines and charge little or no mark-up. Consolidation levels in retail pharmaceutical sales in Ukraine are still low, with no chains that have a presence in all regions of Ukraine. The three largest pharmacy chains (Pharmacy-Magnolia, brand “Apteka Nyzkyh Tsin”), Med-Service Group and Titan (“Zdorovye” brand), account for only 8% of total pharmacy sales. Given the low level of concentration in retail pharmaceutical sales, there is significant opportunity for international chains to enter the Ukrainian market.

Using an Agent to Sell U.S. Products and Services

Identifying a reputable, reliable agent or distributor is vital to mitigating risk and achieving success in the Ukrainian market. To identify such a business partner, it is essential to conduct due diligence. Depending on your business plan, you may want to look for distributors that have nationwide capabilities, including those located in the major cities and regions of Kyiv, Kharkiv, Dnipro, Lviv, and Odessa. 

Depending upon your long-term interests, using an agent or distributor is an excellent way to learn about the Ukrainian market, gauge market potential, establish connections, develop a customer base, establish a foundation for future expansion into new product lines, introduce new-to-market technologies, and develop product recognition in the market. To find a qualified potential partner, the Commercial Service recommends using one of our services to conduct initial screening and meet with potential partners, agents, or representatives. Attending or participating in Ukrainian trade exhibitions is another way to identify and gauge the qualifications of prospective partners. For more details on the trade exhibitions taking place in Ukraine, please refer to the U.S. Commercial Service in Ukraine.  

The Commercial Service strongly advises against covering the Ukrainian market solely from regional offices in Europe. Ukrainians prefer to deal directly with local agents or representatives and subsequently an on-the-ground presence is crucial to successful business development in Ukraine. In addition, your Ukrainian partner can help you explore markets beyond Ukraine. Finally, given the ongoing war between Ukraine and Russia, several companies have reported that commercial relationships managed by regional offices located in Russia have become very politicized and that information to U.S. headquarters companies regarding the Ukrainian market may be distorted as a result.

Establishing an Office

A foreign company interested in starting a business in Ukraine has the option of forming a joint stock company, a limited liability company, a wholly owned subsidiary, or a representative office. It is also possible to work in Ukraine through joint venture/cooperation agreements and investment funds/mutual funds. For regulatory and taxation purposes, representative offices are considered to be independent legal entities, with some exceptions. A representative office can carry out marketing, promotional, and other auxiliary functions, but it cannot sell goods or services. The Commercial Service recommends establishing a wholly owned company in Ukraine if you intend to carry out manufacturing or other significant local commercial activities. A foreign legal entity may have both a representative office and a wholly owned subsidiary. A limited liability company is the most popular form of a legal entity in Ukraine as it can conduct a broad range of business activities.

The process of registering local branches of foreign companies is managed by the Department of Trade and Economic Cooperation at the Ministry of Economy. This registration can be completed within 60 days after all necessary documents are submitted and a one-time fee of $2,500 is paid. For further details, reach out to the Section of Foreign Representative Offices at the Department of Trade and Economic Cooperation within the Ministry (me.gov.ua). Contact information: email represent@me.gov.ua or call +38 (044) 596-68-43.

To register a representative office of a foreign business entity, you must submit the following documentation:

  • An application for registration of a representative office in free form
  • A notarized extract from the trade (banking) register of the country, where the foreign business entity is officially registered (Certificate of Incorporation)
  • A notarized reference from the banking institution where your account is officially kept, with the signature of the bank’s primary officer
  • A power of attorney to carry out representative functions issued under the laws of the country where the Head office of the foreign business entity is officially registered
  • The protocol of the establishment of representative office in Ukraine and the appointment of the Representative Director
  • Passport information and ID number of the head of representation
  • The lease agreement of representation’s legal address

 

All documents should have an official corporate stamp and be translated into Ukrainian. The translation must also be notarized. The documents should be issued no earlier than six months before submission to the Ministry. All documents should be notarized by a notary at the place of issue and legalized in a consular institution of Ukraine in the United States. We recommend that U.S. companies work with local law firms, consultants, or business advisory services to ensure a smooth registration process. The Commercial Service can provide you with a list of local law firms.

U.S. companies can find professional personnel for their Ukrainian operations through many experienced local and international recruitment agencies operating in Ukraine. For additional information, access U.S. Department of State Investment Climate Statement website.

Joint Ventures/Licensing

Because Ukrainian businesses currently have limited access to financial resources, more Ukrainian companies are seeking to establish joint ventures (JVs) with foreign investors as a means of accessing financing. However, concerns remain over whether Ukraine has succeeded in establishing a sufficient legal framework to protect foreign investors. U.S. companies pursuing this option should employ local legal counsel and seek to structure their entity as an offshore business organization where international laws apply.

According to a Law No. 222-19, “On Licensing of Types of Economic Activities,” adopted on March 2, 2015, and amended on December 15, 2021, the business activities set below are subject to licensing (a full list of business activities subject to licensing is available via the Verkhovna Rada of Ukraine).

•    Granting guarantees and suretyships
•    Financial leasing
•    Factoring
•    Trust management of financial assets
•    Specific types of insurance as defined by the legislation
•    Lending funds with their further return
•    Granting loans including financial credits
•    Administration of private pension funds
•    Administration of financial assets for purchase of goods for groups of purchasers
•    Property management for financing constructions or real estate transactions
•    Professional activity in securities market 
•    Transportation of passengers, dangerous goods and hazardous waste by river, sea, road, rail and air transport, international carriage of passengers and goods by road vehicles;
•    Security guard activities
•    Tour operator activity
•    Brokering in employment abroad
 

Import and export licenses are required for certain goods in Ukraine. The list of goods subject to licensing, as well as the applicable licensing conditions and quotas, is updated annually by the Cabinet of Ministers of Ukraine. The current list of such goods is established by Resolution No. 1795 of the Cabinet of Ministers of Ukraine, dated December 31, 2025, “On Approval of the Lists of Goods Whose Export and Import Are Subject to Licensing and Quotas for 2026.” 

As of 2021, the list includes: pharmaceuticals; paints and lacquers; dyes; hygiene products; cosmetic products; pedicure and manicure products; shaving aerosols and deodorants; lubricants; waxes; shoe polishes; insecticides; solvents; silicone; fire extinguishers and the chemicals that fill extinguishers; refrigerators and freezers; air-conditioners; humidifiers; and other selected industrial chemical products; fungicides, insecticides, herbicides; and plant growth adjusters. 

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