Industrial chemicals are now manufactured in Ukraine by a joint venture between a German chemical company and a Ukrainian co-operative, according to reports.
The German company, Industrial Co-operative B, bought the firm Ukropash, based in the western city of Odessa, and has since invested a further €3.4 million ($3.9 million).
The Ukrainian coop, Industrial Chemical Co-op Svyazna, has been established as a subsidiary of the Ukrainian Co-operatives and Entrepreneurship Development Board (BCESB).
The co-ops aim to promote sustainable business practices in the fields of chemicals and manufacturing by developing industrial co-operativities.
A spokesperson for the company said the decision was made “because of the increased demand for industrial chemicals from Ukraine”.
“Industrial Co-ops and their partners aim to improve the quality of the supply chain, increase co-operation and increase production efficiency in the manufacturing sector.
We are looking forward to this important step,” the spokesperson said.
The move follows the Ukrainian government’s decision to close the Odessa plant, which it says is responsible for producing a third of the countrys industrial chemicals, citing a shortage of qualified workers.
Ukraine’s energy and chemical industries have been hit hard by the sanctions imposed by the West in retaliation for the country’s annexation of Crimea last year.
A poll by the independent Levada Centre for Public Opinion (VVD) in June found that only 14% of Ukrainians support sanctions against Russia, compared with a majority of Ukrainians who want sanctions lifted.