A special investigation by Leasing Life into Ukraine’s leasing sector has revealed that a number of large foreign companies are planning to enter the market.

International captive lessors in the transport sector told Leasing Life that they are investigating whether to enter the country. Also, several Russian banks are looking either to build up their existing leasing businesses or establish brand new ones.

One major Polish lessor is also planning to launch a Ukrainian operation on the back of its parent’s possible entry into the East European country. The market in Ukraine is heavily dominated by international leasing companies while a Russian player, VTB Leasing Ukraine, holds the number one spot thanks to its domination of the country’s rail leasing sector.

Although still suffering the effects of the banking crisis, which saw lending markedly reduced and bad debt levels soar to almost unprecedented levels, Ukraine’s fledgling
leasing economy looks set to get back on track in 2011.

Leasing volumes, however, are unlikely to reach the high levels they did before the recession.

A full report on Ukraine’s leasing sector will appear in the July issue of Leasing Life

Brendan Malkin