- Global authorities tried to control the situation by imposing sanctions on Russia, which led to serious problems in the supply chain.
- Ukraine had to deal with port closures and safety issues as innocent civilians were forced to flee their homes.
- Companies like Airbnb stepped up by providing shelter to 100,000 Ukrainians who needed shelter.
In a shocking turn of events, we started 2022 with a global conflict when Russia invaded Ukraine. The Russian invasion of Ukraine affected global markets in 2022, exacerbating an economic situation already fraught with high inflation and supply chain issues.
The Ukrainian people suffered, and many innocent civilians fled their homes in search of safety, seeking refuge in other countries. Ukrainian companies have been greatly affected, along with international companies running business projects in Ukraine. We’ve seen commodity prices rise while stocks fall, and investors are waiting patiently to see what happens next.
Many organizations have stepped up to provide support and relief to Ukraine. If you are looking to invest in Ukraine by supporting its economic endeavours, we have searched for the best Ukrainian stocks and investments exposed to Ukraine.
Why invest in Ukraine?
Before we look at how to invest in Ukraine, we need to take a step back to consider why we should invest in Ukraine now. The Russian invasion has led to commodity disruptions, supply chain issues, trade closures, and rising inflation, not just in Ukraine. Every part of the world felt the impact of this conflict.
Kyiv, Ukraine, has become a major hub for software developers in the past few years. There are about 200,000 software developers in the country, although the population is only 43 million. Due to lower salaries and high quality of developers, many international companies have hired employees in Ukraine. Many Ukrainian startups and tech companies are hiring as they seek growth. Innovation and growth in the Ukrainian technology industry presents a compelling argument for adding exposure to this sector of the global economy to your portfolio.
As the conflict progressed, these Ukrainian companies demonstrated resilience in how they responded to the war. Many continued their operations despite all the issues they had to deal with collectively. Several technology companies with offices in Ukraine continued to operate during the conflict after ensuring the safety of their employees. The resilience and determination of the Ukrainians under attack was really moving for the world to watch.
Finally, it is worth investing or donating money to Ukraine because innocent people need our support during this very difficult time. Ukrainians have already gone through an unfathomable number of challenges in 2022. Donations provide much-needed immediate relief, and economic investment will provide money for the Ukrainian economy to continue growing and rebuilding once this conflict is over.
ETFs with Ukrainian exposure
If you are looking to invest in an ETF with Ukrainian exposure, here are your best options based on the funds we were able to find with European investment interests.
FlexShares Morningstar Emerging Markets Sentiment Index (TLTE)
This fund consists of emerging market stocks for those looking for strong buy and hold potential. Given the growth potential of developing economies, many investors have added this asset to their investment portfolios.
Former Vanguard FTSE All-World Corporation of the United States of America Small Capital (VSS)
An ETF gives you this exposure to small businesses listed outside of the United States. This fund tracks the performance of approximately 3,300 stocks of companies in 46 countries with developed and emerging markets.
Vanguard FTSE Europe ETF (VGK)
This ETF offers exposure to the advanced economies of Europe, with its holdings spread across more than a dozen markets. Many analysts suggest that it is time to move beyond the gloom of the Ukrainian conflict and rising fuel costs.
Vanguard FTSE Developed Markets ETF (VEA)
This ETF includes stocks in several developed markets outside of North America. This fund aims to match the performance of a variety of joint stock companies (large, medium and small) located in the main markets of Europe.
Stocks with Ukrainian exposure
Many local companies are exposed to Ukraine based on the location of their business operations. Many other companies have business dealings affected by the escalating situation in Ukraine. However, we chose to focus on stocks with direct trading implications. Here are some stocks with Ukrainian exposure that are worth considering.
Carnival Corp. (CCL)
This is the world's largest cruise line operator, generating about 3.6% of its revenue from Russia and Ukraine. Shares of this stock have declined since the invasion began due to high fuel prices and lost revenue.
The company announced $3 million in relief for Ukraine in March 2022. It's worth keeping an eye on this company as it tries to navigate the difficult landscape with everything happening in Ukraine. One can only speculate when travel will return to this part of the world, so CCL is likely to be a buy-and-hold game.
Airbnb Inc. (ABNB)
The war in Ukraine has greatly affected the online market for vacation rentals and tourism activities. Airbnb has had to run limited business operations in Russia while also trying to figure out how to help Ukrainian refugees seeking shelter around the world.
Airbnb set a high bar in support of Ukraine as 100,000 people who fled Ukraine were able to find shelter in other countries thanks to the generosity of Airbnb and its hosts. Airbnb has also allowed guests from all over the world to book Airbnb units in Ukraine as a donation because they will not be staying there. It's worth watching Airbnb because pent-up demand for travel leads to a boom in people seeking accommodation and travel activities all over the world.
It's also important to note that spending money on Airbnb's Ukrainian unit injects money into the local economy. So if you haven't invested in Airbnb stock, you can consider supporting Airbnb hosts in Ukraine.
EPAM Systems Inc. (EPAM)
Engineering platforms and digital software are currently employing 14,000 workers in Ukraine. Stock prices have naturally fallen since the invasion began, but some analysts consider this a buy. The administration continues to work around the high exposure of Ukraine and Russia. The company even managed to announce a very strong start to 2022, with revenue growth of 50%.
Expedia Group Inc. (EXPE)
The travel company saw profits plummet when the invasion began in Ukraine due to the obvious travel concerns created by the conflict. In March, Expedia announced that it would halt sales of flights to and from Russia. It is difficult to predict how this conflict will unfold, but one can only assume that travel restrictions and high fuel prices will continue to affect Expedia. We hope that the situation will stabilize so that the company can resume its operations in Russia and Ukraine.
top ukrainian stocks
PFTS is the Ukrainian stock exchange. Here are some of the biggest Ukrainian companies you can invest in globally. When choosing your investments, be aware of the need to be reminded of the risks involved in trading in global markets due to local uncertainty and war-related volatility.
Kernel Holding SA (KER.WA)
Kernel Holding is the largest producer of sunflower oil in Ukraine, headquartered in Kyiv. The company trades on the Warsaw Stock Exchange. Kernel Holding has seven different business segments in the agricultural industry. The company suffered major setbacks regarding agriculture and exports due to the Russian invasion.
With Ukraine being a major shipper of corn, sunflower oil and wheat, it is important to see if shipping flows improve. And while the company boosted sales by rail across its western border, port closures caused major disruptions to shipping.
Astarta Holding NV (AST.WA)
The Ukrainian Agricultural and Industrial Holding Company is currently listed on the Warsaw Stock Exchange. With major ports closed due to the ongoing war, Astarta reported that more than 150,000 tons of grain were stuck at the border at one point. The company had agreed to deliver 25,000 metric tons of corn to European partners in April, but had run into clearance problems from rail officials.
Ukrtelekom is a Ukrainian telecom provider with a combination of five different business sectors: mobile services, enterprises, clients, corporate clients, operators and providers. Founded in 1991 in Kyiv, the company has been instrumental in delivering messages and communication since the start of the war in Ukraine.
What you need to know about investing in Ukraine
As you already know, the war in Ukraine caused global stock market volatility. Sometimes volatility can create new opportunities. Other times, volatility can lead to short-term errors due to panic.
There are many factors worth considering before investing in Ukrainian securities or any stock that could be affected by the ongoing conflict between Russia and Ukraine. We hope that many companies will resume operations in Ukraine as soon as they feel safe to do so.
When you are looking to invest in the Ukrainian market, you should also consider the sanctions against Russia. As a result of the Russian invasion, many countries around the world have limited commercial dealings with them. This also affects Ukraine since the port closures have led to delays and trade issues. All of these supply chain issues have contributed to rising inflation around the world.
You must protect your portfolio in times of high inflation and global uncertainty. You can review Q.ai's inflation suite and protect your investments in this way. You can also activate portfolio protection at any time to protect your gains and reduce your losses, no matter what industry you are investing in.
Investing in stocks with foreign exposure can be a risky proposition. You have to take into account the political climate and work delays due to safety concerns. If you are looking to support Ukraine directly for immediate relief, look no further than donating to trustworthy charities that continue humanitarian efforts.
Download Q.ai today To access investment strategies backed by artificial intelligence. When you deposit $100, we will add an additional $100 to your account.