Interview with Mr. Ruslan Demchak Owner of Ukrainian Business Group

UNITED WORLD for USA TODAY




UNITED WORLD: UBG was established in 1997 and it comprises of 14 businesses. In 2005 after discovering several new business units it entered the market as the Ukrainian Business Group Corporation. What have been the biggest milestones and the greatest achievements of the Group so far?

MR. RUSLAN DEMCHAK: One of our latest achievements has been registering our own bank in 2007. When others were losing clients, we gained more. In 2009 we were ranked 134th out of 174 banks and this year we are number 69. Our strategy is to be one of the 50 largest banks in 3 years.

UNITED WORLD: You have succeeded by getting through the economic crisis and when others were losing their clients, you actually gained clients. What main strategies and competencies did UBG use at that time?

MR. RUSLAN DEMCHAK: The US is our role model because the US is a magnet for the best people of the world. We try to act as America would in the Ukrainian market. We have a program to attract the best teams. They come from other banks and businesses to work for the Corporation – it is some kind of business migration. We think that the biggest resource is human capital potential. We offer them more opportunities; we guarantee and provide the performance of such promises.

Just like the US, the UBG Corporation – it’s an idea that was drawn on the paper. The US idea was drawn in its Constitution, and the UBG idea – in its Corporate Code. If the idea is correct, it gives the opportunity to be successful.

UNITED WORLD: You aim to become one of the top 10 Ukrainian corporations within the next 10 years. What are your future strategic and expansion plans that will allow you to achieve this vision?

MR. RUSLAN DEMCHAK: The UBG Corporation has its Managing Company. It is a center of brainstorm, which optimizes our businesses and establishes new start-ups. Our Managing Company includes a quality control department so improvements are implemented regularly. There is an operating task program that increases the efficiency of management in many times. For example, during the board of directors, that lasts 3 hours, we consider up to 300 issues! We have individually developed motivation for each employee. In terms of our strategy, we are entering new markets in Ukraine – the IT, television and agriculture markets. We think that these sectors will be the most profitable and we support this strategy.

UNITED WORLD: What are the key drivers of growth for the business?

MR. RUSLAN DEMCHAK: The medical sector is a key driver. We have 6 clinics in operation and additionally we are planning to open children’s clinic before June 1st and we are also planning to open a clinic for adults (emergencies) this year.

UNITED WORLD: You really value your employees and offer very good compensation packages. You also engage in corporate social responsibility (CSR) a lot. What are the main areas of CSR that you engage in?

MR. RUSLAN DEMCHAK: We have a set of social programs that include motivation programs for our staff. We have financial and non-financial programs of motivation and the program of adaptation of employees. We have our own internal training center.

UNITED WORLD: We always like to ask about the relations between the US and Ukraine given that our report is for USA Today. As we know the Ministers for Foreign Affairs and Energy have recently secured $50 million for a nuclear energy program, and you just mentioned that you view the US as a role model. Do you have any further plans to target this market further and expand your presence there?

MR. RUSLAN DEMCHAK: We do not have ambitions to enter the American market in 2 to 3 years. We are focusing on Europe and this year we are going to open our first foreign delegation office in London. We have a strong IT processing company and we think we can also serve American banks with our IT services as well. We plan to enter the American market through the IT sector.

UNITED WORLD: On a personal note, thank you very much for your time. What have been your biggest contributions to the company and the industries you have been operating in?

MR. RUSLAN DEMCHAK: I think each person should decide what he is good at. I think I am professional at building structures and administrating them. I am a good manager and I am proud that the structure I have created is self-regulated and self-improving. It is working well. I want to add that on January 1st this year I passed the management process over to my substitute who is now President of the Corporation. I am now the head of the Federation of Employers of Kiev City and I think the time has come to promote cooperation between private and state companies. I think I can share my experience of successful management with other Ukrainian businesses.

UNITED WORLD: Thank you very much.