After the onset of full-scale aggression, Ukrainian business has gone through an extremely difficult period, as the main task for all domestic companies in the first months of the war was to withstand. Those companies that managed to adapt to the new realities are now making a significant contribution to the approach of victory, helping Ukrainians and supporting the Armed Forces of Ukraine. The company “Cratia”, which has been working in the Ukrainian pharmaceutical market since 2006, despite all the difficulties, continues to facilitate the arrival of quality medical products in Ukraine and attracts foreign partners to help. Managing partner of the company Maxim Bagreev shared his own experience of overcoming challenges caused by the war, and told LDaily about how the cohesion of a team united by a common goal gives effective results.
LDaily: Our country is going through a difficult period of becoming an independent European state, which forces us to reconsider views and life. What lessons have you learned from these difficult times?
M. Bagreev: This is not a discovery of wartime, but the war has once again confirmed that the team is the most important value. Whether it’s about sports, business or military challenges, the team is that well-tuned mechanism in which, thanks to understanding and implementing their functions, everyone brings success closer. The best example of a team is the Armed Forces of Ukraine, which motivate each of us today.
I am very lucky to have professionals endowed with the best human qualities in my environment. Thanks to a wonderful team, we have overcome the most difficult periods, and a common goal – to establish productive work to approach victory – has united us all even more. Moreover, it turned out that even narrowly specialized companies have significant potential in practical help to their country, not only by paying taxes and preserving jobs.
LDaily: What has been the biggest challenge for business during the war and how did you overcome this stage?
M. Bagreev: Of course, the first months were the most difficult. By the end of February, part of the team found themselves in the occupied territories, some had to spend weeks in a bomb shelter or in occupation, and part of the female staff was forced to leave the country with children without money, things and any plans for the future. Many needed support.
As for me, since the beginning of the war and until now, I have not left Kyiv with my family. Despite the difficulties and emotions, I realized that I had to work and keep the team. So the first stage was to find words and actions that would motivate people, whose attention was solely focused on the war, to return to their usual work. The next step was to adapt to new conditions and renew cooperation with partners – this was a period of fulfilling obligations, which we also successfully passed. Some business processes had to be adjusted almost from scratch, which was not easy. Now I can confidently say that in less than a month we got back on track and adapted to the new realities. In this we owe in part to the significant support of our foreign partners, whom we would like to thank for understanding.
LDaily: What do you think helped you and other companies stay afloat?
M. Bagreev: We are all part of a team where each of us takes on a certain responsibility. Belief in this team is the only formula for success, because what we are capable of individually and what we can do as a team is incomparable. So, I believe that what helped us to stay afloat is the realization that our contribution to work and social benefits will bring about a common victory. Therefore, we work during the day, and in the evening and on weekends we become volunteers and involve others in volunteering.
I am lucky to have a socially responsible team – among us, there are blood donors, those who delivered hot meals for territorial defense, donated their own equipment, collected money for military needs. Ukraine is held together by such people, and I am proud of them. Ukrainians are an unbreakable nation that has united since the beginning of the war and for over a year now has tirelessly focused its efforts on victory. That’s why we are helped by the entire civilized world and the support of partners is literally life-saving.
LDaily: How has the war changed your company’s activities? What new challenges have arisen?
M. Bagreev: With the onset of the war, I began to look for ways in which the business I manage could help. At first, it seemed that the only direction was to donate to the Armed Forces of Ukraine. So, at the end of February 2022, we transferred almost all the company’s funds for the needs of the Armed Forces and the Red Cross.
But when there was a rapid increase in the shortage of medical supplies and medical products in the first weeks, we turned to the Ministry of Health of Ukraine to clarify the situation and create appropriate requests to foreign partners to provide humanitarian aid. Surprisingly, our requests received many responses. So, the logical step and new challenge was to attract even more help, for which we regularly inform the global pharmaceutical and medical community about the war and the needs it causes.
Among the new challenges, I can’t help but mention the transition to remote work and the stabilization power outages, during which we tried to maintain work efficiency. The pandemic caused by the coronavirus to some extent prepared us for remote work, but now our team works from many countries, including EU countries and Japan. So, during blackouts, working hours were adjusted to the schedules of disconnections for each employee. This experience opened a completely new perspective on determining the place and schedule of work, as well as the flexibility of the business.
One of the global challenges for the entire pharmaceutical community was the shortage of drugs in the first months of the war. To overcome it, all participants in this market had to quickly take the necessary steps.
LDaily: But how could you influence the improvement of the drug situation?
M. Bagreev: “Cratia” is part of the pharmaceutical market, which faced serious crisis phenomena at the beginning of the war. Part of the production and wholesale warehouses was destroyed, part ended up in occupied territories and in areas of military operations.
Not only did the logistics within the country suffer, but also the import routes, causing many international carriers to cease operations. In these uncertain conditions, foreign manufacturers halted deliveries, and the lack of air connections made it impossible to deliver ingredients for the national manufacturer. This led to a deficit that was further exacerbated by the panic in the population.
To regulate the situation, the Ministry of Health of Ukraine urgently implemented temporary measures to simplify access to medicines and medical devices in the Ukrainian market. Among these were the possibility of importing unregistered products, emergency registration, simplification of quality control and a transition to electronic document circulation, permission for transportation by public transport, non-prescription sales, and others. These steps were aimed at unblocking the supply of medical products to Ukraine while maintaining necessary quality and safety controls. To accelerate supplies, we highlighted such important news in Ukrainian and English, also translated legislative acts and provided consultations to manufacturers.
As I said, we also asked for humanitarian aid, and almost no one we appealed to stayed aside. Over the year, our partners – foreign donors – sent tens of tons of medicines and thousands of units of medical devices to the Ministry of Health, hospitals, volunteers, and domestic funds.
LDaily: The “Cratia” company assists in the registration of medical and cosmetic products not only in Ukraine. How has your activity changed in the international market?
M. Bagreev: We have been working in the markets of neighboring countries for many years, having our own team in almost every one: in Azerbaijan, Armenia, Georgia, Kyrgyzstan, Moldova, Tajikistan, and Turkmenistan. In 2020, we opened offices in Kazakhstan and Uzbekistan. Even before the war began, we were actively developing in these markets, and due to our knowledge of international legislation and European approaches, we were chosen by global manufacturers. By the way, after the war started, colleagues from all countries showed empathy, some employees donated their own salaries and bonuses to the Armed Forces of Ukraine.
From the middle of the year, national manufacturers, who lost many opportunities for export, began to apply more frequently regarding the legalization of their products on the European market. We were preparing to enter the EU market, but the war accelerated these plans.
LDaily: So, Ukrainian manufacturers will now enter European markets faster? And what is the attitude towards “Made in Ukraine” products in general?
M. Bagreev: There are currently no prejudices in the world against products of Ukrainian production; our goods represent uniqueness, civility, identity. Ukrainian products today are in high demand, and an additional demand for cosmetics of national production was created by Ukrainian women who temporarily moved to the EU.
Right now, we are helping national manufacturers of medical products and cosmetics to enter the European market. Although Europe has some of the strictest regulatory requirements for permit documents to introduce medical and cosmetic products to the market, this market has great prospects for national manufacturers: more than 446 million potential consumers with high purchasing power, interest, and openness to Ukrainian brands. After meeting the requirements, the principle of the single market comes into effect, which opens simultaneous access to all 27 EU countries, as well as access to the markets of those countries that have industry agreements on “industrial visa-free regime”. Among them are Turkey, Switzerland, and others. So, the path to the European market is complicated, but it is entirely realistic and purposeful.
LDaily: How difficult is it to attract new customers during the war?
M. Bagreev: Very difficult. The war took everyone by surprise and, unfortunately, has already caused the closure and downsizing of many enterprises, and hundreds of thousands of people have lost their jobs. There are still logistical problems and economic uncertainty. We are grateful to those partners who continue to fill the medical and pharmaceutical market with quality products despite the war and risks.
At the same time, new production facilities are opening in Ukraine, including turnstiles, bandaging materials, technical means of rehabilitation, hemostatic means, and many others. We, in turn, facilitate their opening and development, and often do this for free for those companies that help the Armed Forces of Ukraine or make another significant social contribution.
To accelerate entry into European markets, we actively cooperate with national and foreign manufacturers, which opens up great prospects and sets ambitious plans for future integration with the EU.
LDaily: Most health authorities have gone digital during the war. Has this facilitated and simplified the process of registering medical products in Ukraine?
M. Bagreev: Indeed, since February 25, 2022, the Ministry of Health of Ukraine, the State Service of Ukraine for Medicinal Products and Drug Control, the State Expert Center, and other state bodies have taken steps to transition to electronic document management. This decision, together with the resilience and professionalism of their teams, made it possible not to stop work even in the extremely difficult first months.
Digitization is already one of the significant advantages of Ukraine. For example, the State Expert Center created a convenient Applicant’s Electronic Office back in 2020. But since the war has accelerated the process of digital transformation, changes to the current legislation in this area of relations with the state are being made constantly. Thus, since the end of March 2022, the State Service for Medicinal Products and Drug Control has been accepting applications, documents, and additional materials in electronic form, and since April 2023, the Ministry of Health has decided to extend the e-prescription to all medicines that are in the State Register of Medicinal Products and are subject to prescription.
We help to implement digitalization because it opens up better management mechanisms, increases transparency and the range of state services, and promotes the development of the healthcare system as a whole. Our company actively participates in discussions and pilot projects.
LDaily: You have also proposed your own solution for the transition from paper to electronic instructions for using medical products. What are its advantages?
M. Bagreev: Electronic instructions began to be used more than 20 years ago, and since the transition to digital has many advantages, the trend is spreading worldwide. For the manufacturer – this is an opportunity to save time and costs, as well as quickly update safety information. For the patient, doctor or other user – this is the opportunity to have constant access to the necessary instructions, to conduct a search by text. Of course, there is also a social benefit – reducing deforestation and, accordingly, a positive environmental impact.
Let’s take modern diagnostic laboratories, where all processes are automated. Is it advisable to put a paper instruction in each test kit if human participation is minimal? At the same time, the user does not always have access to the Internet, or for other reasons wants to receive a paper instruction. For this, appropriate online and offline tools are needed.
Having consulted and received approval in competent bodies, we have created the necessary infrastructure and opened the website https://e-ifu.com.ua/. For companies that have provided medical devices as humanitarian aid, we offer this service free of charge for one year. Now, if the manufacturer provides instructions in electronic form, the user gets access to it via a QR code, a quick link, or by searching on the site. There is also a convenient option to send an electronic instruction by email or a paper instruction to the specified address at the user’s choice.
LDaily: What do you think awaits Ukraine after the end of the war?
M. Bagreev: I firmly believe in our victory. After it, Ukraine awaits restoration and prosperity, for this there are all the prerequisites, including – wonderful people, Ukrainians, who demonstrate to the world unparalleled resilience and desire for freedom, civilization and wit. Ukrainians have made a choice – to move forward, and this choice has attracted unprecedented support from the international community, forcing the world to consolidate and change forever. Thanks to this, Ukraine strengthens its positions in the world already today and after the end of the war, we will be strong as never before.
On June 23, 2022, Ukraine finally became a candidate for EU membership. Even despite the fighting, 55% of the members of the European Business Association want to invest in Ukraine, so it is not difficult to imagine what wide opportunities will open up for our country after the victory and what reforms will precede this.
On this path, we are waiting for a change of key institutions, adaptation of domestic legislation, its harmonization with the experience of European countries. Therefore, in addition to successes on the battlefield, we must keep the economic front, developing a strategy for the future in which Ukraine will be attractive to the world as a place to do business.
