Ernst & Young Continues to Support Business in Ukraine

The consulting firm Ernst & Young, which is part of the renowned 'Big Four' accounting firms, continues its operations in Ukraine, concentrating on helping businesses navigate through challenging conditions. In an interview with NV, managing partner of EY in Ukraine, Bohdan Yarmolenko, underlined the significance of supporting enterprises during these difficult times.

"We help businesses make this world a better place. This is the slogan of our organization. What do we do? We are usually known as auditors. However, today, auditing constitutes only 30% of our business. The remaining 30% is tax and legal consulting, and 40% is consulting: management consulting, IT, and corporate finance. This includes valuation, M&A, and due diligence," Yarmolenko noted, highlighting the diversity of services provided by the company.

When asked about changes in pricing policy following the onset of the full-scale war, the managing partner of EY in Ukraine remarked, "Initially, the average cost per hour decreased. But now it is rising due to inflation. We are increasing salaries for our employees, and consequently, the price is going up." This indicates that the company is adapting to new economic realities, particularly the rising costs of maintaining personnel.

Yarmolenko also pointed out that the number of non-commercial projects aimed at supporting the public sector has increased since the war began. "These are projects from international organizations that help Ukraine to reform," he emphasized, indicating the importance of international assistance during wartime.

Discussing the structure of the company's income, Yarmolenko noted that the market has changed significantly: "I would say that the market structure has changed. Once, auditing accounted for 50% of our business — until the 2010s. This was also the case for our colleagues in the industry. However, as the market becomes more stable, the share of consulting projects increases. In the Ukrainian context, a considerable portion consists of projects aimed at supporting the state." This suggests that EY is actively involved in projects aimed at supporting government reforms.

It is important to note that EY does not receive government funds for its projects. "Projects are financed by international financial organizations, such as the European Bank for Reconstruction and Development, the World Bank, the European Union, or the USAID agency, which has almost ceased funding projects," Yarmolenko explained, emphasizing that international support is critically important for the country's development.

The managing partner also discussed the company's client base: "70% of our clients are international companies and organizations. Generally, any international company you know is likely our client, either for tax services or human resources management services." This indicates that EY has strong ties with international partners, allowing it to remain competitive in the market.

When asked about the number of employees in Ukraine, Yarmolenko stated, "We have approximately 630 employees in Ukraine. For comparison, Poland has five to six times more. However, their incomes will be 10-12 times higher than ours." This highlights the disparity in business scale between Ukraine and neighboring countries like Poland.

The managing partner explained why this situation exists: "Their economy is simply much larger. The key factor is the average cost per hour. In Poland and the Baltics, this figure is twice as high as in Ukraine." This indicates that there is potential for growth in Ukraine, but addressing a number of economic and social issues is necessary.

In conclusion, it is worth noting that Ernst & Young, as one of the leading consulting firms, continues to play an important role in supporting business in Ukraine, providing a wide range of services that help enterprises adapt to new conditions and maintain stability during these challenging times.