Top Ukrainian stocks on world markets

Key points to remember

  • Global authorities tried to navigate the situation by introducing sanctions against Russia, which led to serious supply chain problems.
  • Ukraine has faced port closures and security issues as innocent civilians have had to flee their homes.
  • Companies like Airbnb stepped up, offering shelter to 100,000 Ukrainians who needed shelter.

In a shocking turn of events, we started 2022 with global conflict when Russia invaded Ukraine. The Russian invasion of Ukraine impacted global markets in 2022, only worsening the economic situation already marked by rising inflation and supply chain issues.

The people of Ukraine have suffered and many innocent civilians have fled their homes for safety, seeking refuge in other countries. Ukrainian companies have been heavily affected, as well as international companies that operate business ventures in Ukraine. We have seen commodity prices rise while stocks have fallen, and investors are patiently waiting to see what happens next.

Many organizations have mobilized to offer support and relief to Ukraine. If you are looking to invest in Ukraine supporting its economic efforts, we have researched the top Ukrainian stocks and investments with exposure to Ukraine.

Why invest in Ukraine?

Before we look at how to invest in Ukraine, we need to take a step back to ask ourselves why we should invest in Ukraine right now. The Russian invasion has led to commodity disruptions, supply chain issues, trade shutdowns and rising inflation, and not just in Ukraine. All regions of the world have felt the impact of this conflict.

Kyiv, Ukraine has become a major hub for software developers over the past few years. There are around 200,000 software developers in the country, despite a population of just 43 million. Due to lower salaries and high quality of developers, many international companies have hired staff in Ukraine. Many Ukrainian startups and tech companies are hiring as they seek to grow. The innovation and growth of Ukraine’s tech industry are compelling arguments for adding exposure to this sector of the global economy to your portfolio.

As the conflict progressed, these Ukrainian companies showed resilience in their response to the war. Many have continued their activities despite all the problems they have had to face collectively. Many tech companies with Ukrainian offices continued to operate during the conflict after ensuring the safety of their staff. The steadfastness and determination of the attacked Ukrainians was truly moving for the world.

Finally, it is worth investing or donating money to Ukraine, because innocent people need our support during this extremely difficult time. Ukrainians have already gone through an unfathomable amount of challenges in 2022. Donations are providing much-needed immediate relief, and economic investments will provide the funds needed for Ukraine’s economy to continue to grow and rebuild once this conflict is over.

ETF with Ukrainian exposure

If you’re looking to invest in an ETF with Ukrainian exposure, here are your best options based on the funds we could find with European investment interests.

FlexShares Morningstar Emerging Markets Factor Tilt Index (TLTE)

This ETF is comprised of emerging market stocks for those looking for strong buy-and-hold potential. Due to the growth potential of developing economies, many investors have added this asset to their portfolio.

Vanguard FTSE All-World ex-US Small-Cap ETF (VSS)

This ETF gives you exposure to small cap companies listed outside of the US. This fund tracks the performance of approximately 3,300 stocks of companies from 46 countries with both developed and emerging markets.

Vanguard FTSE Europe ETF (VGK)

This ETF offers exposure to the developed economies of Europe, with holdings spread across more than a dozen markets. Many analysts suggest it’s time to look beyond the gloomy Ukraine conflict and rising fuel prices.

Vanguard FTSE Developed Markets ETF (VEA)

This ETF includes stocks from various developed markets outside of North America. This fund aims to match the performance of a diversified group of stocks (large, mid and small caps) located in the main European markets.

Stocks exposed to Ukraine

Many domestic companies have exposure to Ukraine due to the location of their business activities. Many other companies have business relationships that have been affected by the escalating situation in Ukraine. However, we have chosen to focus on actions with direct business implications. Here are a few stocks with Ukrainian exposure that are worth considering.

Carnival Corp. (CCL)

It is the largest cruise operator in the world, and it generates around 3.6% of its revenue from Russia and Ukraine. Shares of this stock have fallen since the start of the invasion due to rising fuel prices and a loss of income.

The company announced $3 million in aid for Ukraine in March 2022. Attention should be paid to this company as it attempts to navigate the difficult landscape of all that is happening in Ukraine. One can only speculate whether travel will return to this part of the world, so CCL would likely be a buy-and-hold game.

Airbnb Inc. (ABNB)

The war in Ukraine has had a huge impact on the online market for vacation rentals and tourism activities. Airbnb has had to manage the limitation of business operations in Russia while trying to figure out how to help Ukrainian refugees seeking refuge around the world.

Airbnb has set the bar high in supporting Ukraine as 100,000 people fleeing Ukraine have been able to find refuge in other countries thanks to the generosity of Airbnb and its hosts. Airbnb also allowed customers around the world to book Airbnb units in Ukraine as a donation because they weren’t going to stay there. It’s worth keeping an eye on Airbnb as pent-up demand for travel is leading to a boom in the number of people looking for lodging and travel business around the world.

It is also important to note that spending money in a Ukrainian Airbnb unit injects money into the local economy. So, if you are not investing in Airbnb stocks, you can consider supporting Airbnb hosts in Ukraine.

EPAM Systems Inc. (EPAM)

Digital engineering and software platforms currently employ 14,000 workers in Ukraine. Stock prices have understandably fallen since the invasion began, but some analysts view this as a buy. Management continues to sidestep high exposure to Ukraine and Russia. The company was even able to announce a very good start to 2022, with revenues growing by 50%.

Expedia Group Inc. (EXPE)

The travel agency saw its revenue decline when the invasion began in Ukraine due to the obvious travel problems the conflict created. In March, Expedia announced it was halting flight sales to and from Russia. It’s hard to predict how this dispute will play out, but one can only assume that travel limitations and rising fuel prices will continue to impact Expedia. It is hoped that the situation will stabilize so that the company can resume its activities in Russia and Ukraine.

Top Ukrainian Stocks

The PFTS is the Ukrainian stock market. Here are some of the biggest Ukrainian companies you can invest in globally. When Selecting Your Investments, Keep in Mind We must remind you of the risk of trading in global markets due to local uncertainty and the volatility associated with war.

Kernel Holding SA (KER.WA)

Kernel Holding is the largest sunflower oil producer in Ukraine, with headquarters in Kyiv. The company is listed on the Warsaw Stock Exchange. Kernel Holding has seven different business segments in the agriculture industry. The company suffered major setbacks regarding plantations 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 shipment flows will improve. While the company has increased sales by rail through its western border, port closures are causing huge disruption 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 had reported that more than 150,000 tonnes of grain were stuck at the border at any given time. The company had agreed to deliver 25,000 metric tons of maize to European partners in April, but they faced clearance issues from rail authorities.

Ukrtelecom (UTLM)

Ukrtelekom is a Ukrainian telecommunications provider with a portfolio of five different business segments: mobile services, enterprises, customers, enterprise customers and carriers and suppliers. The company was founded in 1991 in Kyiv and has been instrumental in delivering messages and communications since the start of the war in Ukraine.

What you need to know to invest in Ukraine

As you already know, the war in Ukraine has caused volatility in global stock markets. 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 may be affected by the ongoing conflict between Russia and Ukraine. Hopefully many businesses can resume operations in Ukraine once they feel safe.

When looking to invest in the Ukrainian market, you should also consider the sanctions imposed on Russia. As a result of Russia’s invasion, many countries around the world have limited their trade relations with them. This also impacts Ukraine as port closures have caused delays and trade issues. All of these supply chain issues have contributed to rising inflation around the world.

You need to protect your portfolio in times of high inflation and global uncertainty. You can review Q.ai inflation kit and thus protect your investments. You can also activate Wallet Protection at all times to protect your gains and reduce your losses, regardless of the sector in which you invest.

Conclusion

Investing in stocks with foreign exposure can be a risky proposition. You need to consider the political climate and business delays due to security issues. If you are looking to directly support Ukraine for immediate relief, consider donating to reputable charities that continue their humanitarian efforts.

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