«The question isn’t whether to invest in Ukraine, but how fast and in what areas.» – Allan Hirst, an independent member of the Supervisory Board of Citi Ukraine

In May this year, Allan Hirst, an independent member of the Supervisory Board of Citi Ukraine, visited Kyiv, reaffirming the bankʼs long-term commitment to the country. He shared with Forbes BrandVoice his perspective on Ukraineʼs economic future and post-war recovery.

You were the executive responsible for Citi’s decision to open a presence in Kyiv. What motivated that decision at the time, and what challenges did you encounter?

When the Berlin Wall came down in 1989, Citi had minimal exposure to this part of the world. We had a joint venture in Hungary, and from there we began to explore the region more seriously. I was part of a very small team tasked with figuring out Citi’s role in Eastern Europe and the former Soviet Union. We looked at countries like Poland and Ukraine. Ukraine stood out because of its size, educated population, and potential, despite the basic state of things at the time. It made strategic sense for Citi to establish a presence. We were guided by our global strategy and the belief that we could find and hire talented local people to build something sustainable. I asked a colleague, Vitek Jelinski, to come to Kyiv and manage the licensing process. That was around 27 years ago. The biggest challenges were structural – the banking system was underdeveloped, and everything had to be built from scratch.

While other Western banks primarily focused on serving global clients in Ukraine, Citi developed deep relationships with local corporations. What benefits did it bring to Citi?

If you’re going to be in a market long-term, you must serve local businesses, not just multinationals. The future of Ukraine lies with local companies and banks. Citi understood that and built relationships with major players in agriculture, steel, and other industries. These companies offered real opportunities for business, including in local currency. Because in any market, itʼs important to conduct a substantial portion of your business in the local currency. When choosing partners to work with, some may reject your proposal, but a key consideration is how much liquidity they will need and how much they can offer. It allowed Citi to diversify its client base and build stronger, more integrated operations in the country. It also helped Ukrainian businesses access international banking expertise and services, which was mutually beneficial.

You famously believed in the power of local management, stating: «Nothing is simple, but anything is possible with you.» Could you elaborate on this philosophy?

In every market, we prioritized building strong local teams. You can’t rely solely on expats – they eventually leave. Instead, we surrounded experienced international staff with talented locals, trained them, and gave them room to grow. In Poland, after 10–15 years of expat leadership, the bank has since been led by Polish nationals. While we haven’t yet had a Ukrainian bank president at Citi, we have several people who could take on that role. One challenge is retaining top talent, as they’re in high demand. But I always believed it made more sense to train and promote local people who had already built successful businesses, often under difficult conditions, than to continuously bring in outsiders.

How do international financial institutions currently view Ukraine as an investment destination amidst the ongoing full-scale invasion?

Many institutions still see what Citi saw: a market with scale, talent, and potential.

The question isn’t whether to invest in Ukraine, but how fast and in what areas.

Companies already present are discussing how to expand. Those not yet in Ukraine are figuring out how to enter. The conversation is about timing, capital, and risk, not about avoiding Ukraine altogether.

In your experience, what are the most critical reforms Ukraine needs to implement to attract more private capital after the war?

The most important reform is building consensus and sticking to it. If Ukraine truly wants to integrate with the EU and build a market economy, it must make hard, often unpopular decisions and carry them out year after year. Reforms take time – sometimes 10 or 20 years. You need a government willing to endure political risk to push these changes through. Things like privatization, creating domestic capital markets, and establishing pension funds are essential, but they require sustained political will.

When Citi first came to Ukraine, the banking system was severely under-capitalized, and the level of management professionalism was low. Some of that was due to a lack of experience and education. You couldn’t even get an MBA here. Reform was difficult because many in leadership roles resisted change. There must be strong regulatory enforcement and serious training programs. You need to build capacity, both in banks and in the regulatory institutions, and that will take years.

Looking ahead, what role should local Ukrainian banks play in the post-war economic reconstruction and development, particularly in fostering stability and facilitating investment?

Local banks will be essential. Theyʼre the ones who will have long-term relationships with businesses on the ground. As Ukraine rebuilds, billions of dollars will come from donors and multilateral institutions. But implementation will require local capacity – people who can evaluate projects, manage funds, and ensure compliance. Right now, there aren’t enough of those people. That’s a bottleneck. We need to start training them now. If we take some specific examples from my vast international experience in other post-conflict countries, Poland offers a useful one. They created private insurance companies, pension funds, and privatized many businesses. This created domestic investors, which made the stock exchange a real source of capital. It still took 10 years. Ukraine needs to do something similar – but faster, if possible. You can’t build capital markets overnight. It requires institutions, regulations, trained professionals, and investor confidence.

Despite the immense challenges, what gives you hope when you look at Ukraine’s economic future and its potential for recovery and prosperity?

The people. Ukraine has smart, well-educated, ambitious people who are oriented toward Europe and democracy. They’ve shown resilience under unimaginable pressure. That gives me hope. Add to that the strong support from international partners, and I believe Ukraine can recover and build something better. It won’t be easy or fast, but with determination and friends, it will happen. And as someone who’s seen countries rebuild from nothing, I think it’s one of the most rewarding things you can do.

Citi’s long-term presence in Ukraine reflects a deep commitment.

The people here are highly capable, resilient, and oriented toward Europe. During the war, that resilience has been tested daily, and it shows. Citi and other companies with deep roots here are focused on how to support and grow their operations, not on exiting. That commitment will be vital in the country’s recovery.