Roman Sheremeta, a Doctor of Economics, Founding Rector of American University Kyiv, and Chairman of Ukrainian American House, shared with LDaily his experience of founding and developing the university during wartime. Also, he discussed how a charitable organization, where he is a chairman, operated throughout the full-scale invasion, the challenges they faced, and how they overcame them. Finally, he talked about the future of economic recovery of Ukraine.
LDaily: What has been your professional journey?
R. Sheremeta: I was born in Ivano-Frankivsk and spent my first 20 years in Ukraine. I studied at two universities: the Oil and Gas Technical University and the Stefanyk Precarpathian University, specializing in economics and law. Then, in the last year of my studies, I moved to a master’s program at Kyiv-Mohyla Academy. My education in Ukraine concluded with me moving to pursue doctoral studies in the United States. I moved at the age of 21 in 2004. In the US, I completed a doctoral program in 5 years, earning a PhD from Purdue University. After that, I got my first job from Nobel laureate Vernon Smith and his team. Thus, I moved to California and began working as a professor in 2009.
My wife was also born in Ukraine, but she has been living in the United States since she was six years old. She is fluent in Ukrainian and often travels to Ukraine with me. In 2013 we decided we wanted to be closer to our Ukrainian family in Cleveland, Ohio – it’s quite a long trip from California. So, when the opportunity came to work at Case Western University, one of the top research universities, my wife and I moved to Cleveland where I took a position as a professor.
I have received many international recognitions, various grants, and awards, including the Vernon Smith Prize. This is a quite significant award, one of the most prestigious in my field, for which I also received a financial reward of $50,000. Additionally, I was recognized as one of the best young economists in the world and one of the top two economists of Ukrainian descent globally, according to Forbes magazine.
Consequently, many opportunities came my way. I was invited to consult for the government. I started working as an advisor, and I was also offered ministerial positions several times, even asked if I would consider a position of the Minister of Economy, or Education. I declined because it was not my interest, at least at that time. Besides this, I began to engage in entrepreneurship because there were funds that I continuously invested with my father in Ukraine. But my main work is still in academia.
In 2017-2018, there was a shift in my career – I transitioned from purely academic work to administration, becoming the director of our business school in America. Later, in 2021, I was offered the position of Founding Rector of American University Kyiv. Thus, we essentially began working on launching a new university, and I moved back to Ukraine at the end of 2021. In 2022, when the war began, we continued our operations. We now have a successful case of opening one of the best universities in Ukraine during the time of war.
Additionally, I started engaging in charitable work, becoming the chairman of Ukrainian American House. This charitable organization has allocated about $10 million in aid to Ukraine over these two years of full-scale war. Today, I serve as the chairman of Ukrainian American House. I remain the honorary founding rector of American University Kyiv and am a professor at Case Western University in the United States.
LDaily: What do you consider the key moments or achievements in your career to be the most significant?
R. Sheremeta: I consider receiving the Smith Prize to be the most significant, as it was the most significant recognition in the fields of behavioral economics and experimental economics. Also, very importantly, was obtaining a job from Vernon Smith, and because we worked together, he became my mentor and friend, and I was able to bring him to Ukraine. We presented both in the Verkhovna Rada and the government – holding meetings with ministers. This gave me the opportunity to influence some processes in Ukraine. Vernon Smith not only founded my field and gave me my first job, but he was also the first Nobel laureate in economics to visit Ukraine since its independence.
I also consider marrying my Ukrainian wife as one of the most important moments of my life. It was important to me that my wife be Ukrainian, and I searched for her for a long time, finally marrying when I was 28 years old.
And, of course, the last period when I moved back to Ukraine just before the start of the full-scale war. Because I believe this is the most important thing I am doing in my life right now – helping Ukraine survive and win this war.
LDaily: As the rector of American University Kyiv, could you elaborate on this role?
R. Sheremeta: American University Kyiv is a private university initiated by numerous stakeholders. For instance, one of the founders is Kurt Volker, and besides him, there are others like Oleksii Shershnov. There are investors such as companies like EPAM, DTEK, and BGV. These are giants because from BGV we have a whole network of ATB stores, from DTEK our entire energy structure, and EPAM is one of the largest global IT service providers. So, we have investors, founders, and of course, a leadership team that continues the operational activities of the university today. They chose me as someone who comes from both worlds – Ukrainian and American. They needed a rector who would be American but also understood the Ukrainian system. I was the ideal candidate for them, able to hire deans, the first professors, create the initial programs, and attract the first students.
Currently, we have 350 students, and our campus is located at the River Port on Poshtova Square, a beautifully renovated building. You can see both the Ukrainian and American flag flying over the building. Today, in those degrees that we offer, such as data science and global management, we rank among the top four universities in Ukraine according to NMT results. Thus, we immediately set a high standard and have maintained it. Our students are fluent in English as all instruction is in English. We have a direct partnership with Arizona State University. This university has been ranked number one in innovation for the last eight years in the United States, ahead of Harvard, MIT, Stanford, etc. They have become our partner, and we have an exclusive 25-year license which gives us access to all their courses and programs. The program our students undergo here is the same as in America. It is closely built in close collaboration with the team from Arizona and with our advisory industrial partners. EPAM is also on our advisory board, advising us on how to build our programs from a practical standpoint.
Therefore, our programs fully meet American standards and are fully industry-oriented because we have industrial partners who help refine these programs. This also enables us to offer dual degrees because you study for three years in Kyiv – the same as you would have studied for three years in America. In the fourth year, you transfer to an American university, you receive a full-fledged diploma from Arizona State University, one of the best universities in America, and a fully accredited Ukrainian diploma from American University Kyiv. So, we have a quite unique system.
We already have our first 30 graduates and currently, 33 students are studying in America in their final year. We have fully accredited programs that have made their first graduation, and all this was achieved during the full-scale war with the russian federation. I consider this an extraordinary story – a story of success and a testament to how resilient Ukrainians are, enduring even such global challenges as war.
LDaily: Please tell us in detail about the Ukrainian American House. How did the idea for its creation come about? What is the organization’s purpose?
R. Sheremeta: Ukrainian American House is an American nonprofit organization, an NGO officially registered in the United States, which has been operating since 2018, well before the start of the full-scale war. The mission of Ukrainian American House is to create an effective platform for collaboration between Ukraine and America in humanitarian, economic, cultural, educational, social, and even political spheres. Its founder is Vlad Skots, also of Ukrainian descent and a well-known Ukrainian businessman in both Ukraine and America, who wanted to establish an organization that would directly assist Ukraine.
I joined it and began collaborating in 2020, but became actively involved with the onset of the full-scale war. Initially, I was on the board of directors, and now I am the chairman of the board of directors, elected for two years, and I am effectively leading this organization today.
Our main activities vary depending on the period – before or during the full-scale war. Starting from 2022, we provided humanitarian aid to Ukraine: bulletproof vests, tourniquets – in the thousands, and also hemostatic agents, totaling more than a million dollars in aid. When we delivered this shipment, we were personally greeted by the chairman of the Verkhovna Rada and the Minister of Health of Ukraine. It was a large batch, and we had involved many donors and provided direct humanitarian aid.
Besides, we advocate for Ukrainian interests in the United States and beyond. We organize conferences and meetings. For example, events on Ukraine Day, February 24th, when we commemorate the start of the full-scale war, which we consistently hold at the California Capitol where thousands of Ukrainians gather.
Recently, we held a conference in Washington, D.C., attended by about 200 American and Ukrainian investors, to discuss how to rebuild Ukraine and invest in it. Last year in Kyiv, we held a forum for 500 people in Parkovyi, attended by deputy prime ministers and ministers – of defense, infrastructure, and other Ukrainian stakeholders, including the country’s largest companies.
In essence, we are involved in a wide range of activities. Additionally, we assist children and hospitals. Currently, we do a lot of work with Ukrainian displaced persons in America. Also, we had a grant to assist Ukrainians in coming to the United States and starting a new life. We continue to support them, including working on mental health issues, as many Ukrainians and their children have experienced significant stress and we must help them in this respect as well. We coordinate with Ukrainian psychiatrists and psychologists who continuously work with our people. Besides that, we work with direct aid, for example, to children. One of our partners, Save Ukraine, retrieves and returns children from russia to Ukraine. We also support them, sponsor, and collaborate with them. Recently, we launched a project aimed at providing humanitarian aid to animals in areas that need it most. We send tons of food to verified shelters and collect donations to safeguard pets by providing urgent veterinary care, including medication and vaccines. In short, we strive to do everything within our power to help Ukraine during these challenging times.
LDaily: Through Ukrainian American House, donations come in to support Ukrainians and Ukraine. How have these changed? Have donations decreased? Is there a decline in interest? What is the trend?
R. Sheremeta: The situation has changed. If we talk about the beginning and middle of 2022, we received substantial donations; people were very generous. There was no need to convince people to donate; people willingly wanted to contribute to Ukraine. As the war continued, many narratives from russian propaganda spread, alleging that Ukraine is corrupt, and that donations do not go where needed. This naturally impacts the psychology of American donors. Until they trust you, they won’t donate. Therefore, we spend a lot of time working with donors to reassure them that the money they give goes directly to helping Ukraine, and it’s not about someone profiting from it.
So now, it’s harder with donors; we need to work more to engage them. We have even shifted our focus somewhat, for example, from direct donor funding to more institutional and grant-based support. There are grants and institutions that support Ukraine, and we need to constantly reach out to them. But the type of individual, personal donations we used to get – where someone would write a check for two to three thousand dollars – is no longer happening. We need to find such people, because people get tired. Ukrainians themselves are exhausted, not to mention people thousands of kilometers from Ukraine, plus the influence of russian propaganda. And we see that today, attracting donations is more challenging.
LDaily: What financial aid have partners provided to Ukraine through you?
R. Sheremeta: In terms of direct assistance, approximately $10 million over two years. For example, one of the largest donations came from the California National Guard, which provided 4,000 bulletproof vests and several thousand helmets. I personally delivered these vests to the 28th Brigade and other brigades before the counteroffensive on Kherson. This was an Odesa brigade located in Mykolaiv. We arranged it, I traveled to the front line, and we also delivered vests, helmets, and tourniquets to other brigades.
There was a significant donation for hemostatic agents. The situation was such that we could still obtain tourniquets to some extent, but there were no adequate hemostatics for traumatic wounds. We needed powders, special bandages that could stop bleeding in a traumatic wound. We managed to collect more than a million dollars in such aid, which we then brought to Ukraine through our organization.
Depending on the need, for example, the “Okhmatdyt” hospital in Kyiv – the largest children’s hospital – needed drug mixers. We purchased them in Germany and brought them to “Okhmatdyt” at a cost of $30,000. There have been many such instances where we provided both direct and indirect assistance to Ukraine.
LDaily: How does Ukrainian American House collaborate with Ukrainian government and local authorities?
R. Sheremeta: I have personally met with mayors and heads of regional administrations and received their requests for what is needed, what kind of help, and then we looked for specific items to send. Often, we even refused some of the aid offered by Americans because it was something Ukraine didn’t need. For example, after COVID-19 ended, they said, “Let’s give you some hand sanitizers.” We calculated: if we shipped these sanitizers to Ukraine – fairly heavy, relatively inexpensive – the shipping would cost twice as much as the product itself. And it wasn’t needed in Ukraine that much. So, there were times when we needed to know what a particular administration, a particular city needed. We always asked the administration to put us directly in contact with the end recipient to ensure transparency.
In this way, we became acquainted with many administrations. And what also connects us with them is that we hold these extensive, large forums to help Ukraine, where we bring together American and Ukrainian politicians, and American and Ukrainian businessmen. They meet at these forums. And, of course, there is quite a high demand for these forums because Ukrainian officials want to be there, as do Ukrainian businessmen, and Americans. So, at this level, we also collaborate with them. We always have delegations from the Verkhovna Rada, from the government, and from the American side, congressmen and businessmen.
LDaily: What challenges does your organization face today?
R. Sheremeta: One of the challenges is that the needs have increased. Ukraine is still in a state of war, people need help, and so do the guys on the front lines. The number of displaced persons in the States has increased; they also need help. Therefore, the needs have increased in number and volume, while donations have decreased. We can no longer help as we used to. We are now running various fundraising campaigns, trying to attract donors, constantly looking for someone to join – new people, new investors. And this is a challenge, a real challenge.
Another challenge, of course, is the amount of misinformation in the American space and the world in general. russian bots, trolls, as we also call them, constantly throw false narratives into social media. This changes public opinion. There are now delays with aid from America in Congress for Ukraine, and these narratives change public opinion and ultimately stop aid for Ukraine. Therefore, our role is very important and I also regularly counteract misinformation. On LinkedIn, Facebook, Twitter – these are the main platforms where I always defend Ukrainian interests in English and constantly stand up against these false narratives. And our Ukrainian American House is involved in this too. This is challenge number two or one of the most important challenges, how to fight this propaganda. So we write petitions, constantly trying to reach out to congressmen and their voters so that they vote in favor of Ukraine.
The third challenge we face today is the challenge of possible collaboration between different stakeholders. Right now, for example, there are tens of thousands of different organizations. You are speaking with me as the head of Ukrainian American House. And there are organizations like Razom and Nova Ukraine in America – major organizations. They also provided tens of millions of dollars in aid to Ukraine. But often we do our own thing and don’t work together in a more unified way. I would indeed wish for all of us, Ukrainian and pro-Ukrainian organizations, to have a closer connection with each other. For example, when we organize a large rally to support Ukraine in Washington or California, all organizations should be involved because we need to gather not just a thousand, not two, but five thousand Ukrainians or five thousand Americans who support Ukraine. Here, of course, I would like this cooperation to be more closely knit.
LDaily: How might support for Ukraine change after the elections in America? Is there a risk of losing financial and military aid from the United States?
R. Sheremeta: It’s a complex question because it’s speculative. Most likely, the presidential candidates will be Trump and Biden, one from the Republican and the other from the Democratic Party. It wouldn’t be correct to say that Biden has been a strong friend of Ukraine, because if he had been, we would have received much more weapons, and much more quickly. So, Biden has his interests, and Trump has his. Unfortunately, Trump’s narrative today is quite anti-Ukraine. However, having spoken with people who worked in his administration, I don’t want to be completely pessimistic that if Trump wins, everything is lost. Although I am not a supporter of his, I understand that the narrative that all is lost if Trump wins is also not quite correct. Trump is a self-loving person, and if told, “Look, you said you would stop the war, but it’s not stopping, we’re not providing help to Ukraine, and Putin is hitting Ukraine even harder! You said you’d do it, and you didn’t, you’re not succeeding!” Maybe something will click in Trump’s mind, and he’ll say: then give Ukraine everything they want. He promised that he would stop the war within 24 hours, but stopping the supply of weapons to Ukraine will not stop the war. It will just lead to more bloodshed and Ukrainian losses. But I don’t want to be completely pessimistic if Trump wins.
If Biden wins, I think it will continue much as it has been. It’s important how Congress is divided, i.e., whether it will be Republican or Democratic, which specific Republicans and Democrats come to power. Because support for Ukraine always comes from centrists, centrist Republicans and centrist Democrats. The far-left Democrats and the far-right, ultra-right Republicans are against Ukraine. But there aren’t many of them. So, if the centrist block wins, then, in principle, we will have a majority in both the Senate and the House, and they can even sometimes push actions bypassing the president. So, American politics has many, as we call them, checks and balances. Even if some kind of dictatorial president comes in, there is still Congress, the Senate, the Supreme Court, etc. So, in principle, there shouldn’t be colossal imbalances, no matter who wins, there won’t be a complete halt. But, of course, we would like this assistance to only increase. And here the composition of Congress will play a major role. This will happen over the next two years. There will be special elections, re-elections. And it will be important to follow this, to ensure that the right people, friends of Ukraine, come into Congress.
LDaily: How would you characterize the economy of Ukraine today? How is its structure changing during the war?
R. Sheremeta: Before the war began, in 2021, we had the highest GDP in the history of Ukraine since its independence, which was around $200 billion. When the full-scale war started in 2022, our GDP decreased by 30%. Now, we are slowly recovering – about a 5% growth per year. It’s difficult because a large part of the budget goes to military expenses, resulting in a shortage in other areas. Some of this is covered by the International Monetary Fund, the European Union, and other partners. But still, Ukraine’s national debt is increasing, even with all the aid. So, the situation is tough for the economy, but not as pessimistic as the World Bank predicted – for example, that the Ukrainian economy in 2022 would fall by 45 or even 50%. It fell only by 30%, so it fell, but not as much as was forecasted. That’s the first remark.
Regarding the structure of the economy, it is changing, of course, because some sectors in Ukraine have suffered more damage than others. For example, agriculture has suffered a lot because it’s difficult to export products abroad. The borders with Poland are closed. It’s also difficult to export by sea because the grain trade isn’t what it used to be. The energy sector has also suffered huge losses due to military strikes by the russian federation on Ukraine.
But let’s look at the IT sector, which is thriving. Even during the war in Ukraine, companies are growing, becoming quite capitalized in the global market and competitive. So in this respect, Ukraine is restructuring, becoming more and more IT-oriented. Additionally, the direction of the military-industrial complex. It is also growing quite rapidly. We are now able to mass-produce our own drones. Of course, there’s still a lot we lack, but at least we see a change, a restructuring of the economy itself.
Predictable changes are happening in Ukraine’s economy. Gradually, it is transitioning to a wartime economy. But, unfortunately, this is happening slowly. We would like to be able to mass-produce our own missiles, rocket fuel, and other necessary things. We are not yet able to produce these for both objective and sometimes not very objective reasons.
LDaily: What challenges and opportunities do you see for our economy?
R. Sheremeta: The primary challenge for the economy is the war, because investment and covering war-related expenses are disproportionate. This includes payments to military personnel, purchasing weapons, etc. This money could be invested in innovation and opening new companies. So, this is one challenge that is currently at the forefront.
The second challenge is the slow pace of government reforms. Many politicians, both in the government and the Verkhovna Rada, say that now is not the time for reforms because of the war. In reality, this is not the case, because war is one of the best times for reforms. Reforms need to be conducted quickly, effectively, and right now. Therefore, the delay in these reforms is another challenge facing Ukraine today.
The third challenge is global – securing international support for Ukraine in a military sense, and in financial terms, attracting international support for reconstruction and investments in Ukraine. Within this large challenge, there are many sub-challenges. For example, one is how to insure property or certain military risks for companies entering Ukraine. How to attract these companies, considering the imperfect legislation and protection of property rights in Ukraine. Thus, this general challenge of attracting Western partners is more global, but it is also one of the three major challenges we face today.
LDaily: What reforms are needed for us to be successful?
R. Sheremeta: The reforms related to the economy are essential. We have serious economic distortions. For example, the large share of the state in the economic sector and many state-owned enterprises are inefficient and unprofitable. Even when profitable, they should not be state-owned because they become centers of corruption. We can count on our fingers which enterprises should remain state-owned, while the rest should be transferred to private management. Privatization needs to happen. I met a few weeks ago with Vitaliy Koval, who is currently the head of the State Property Fund of Ukraine. They currently have projects worth more than 80 billion dollars for the privatization of Ukrainian assets. Land reform must also take place. I understand that we fear a russian oligarch might come and buy up the land. But we can always confiscate, as it is done today. Thus, such an excuse is not serious – the land market needs to be created! These are reforms related to economic issues.
Additionally, judicial and legal reform is always on the agenda because the rule of law is one of the reasons why Western partners are hesitant to enter Ukraine. Further, raid takeovers are still conducted – often under the patriotic banner of state nationalism, claiming we are fighting corruption, or that an asset was purchased for such an amount in the past… But in reality, this all works against Ukraine, it’s the wrong move by both the government and the legislative branch. Therefore, this must be stopped, a transparent law created, and even if there were some past issues, they should not be used as blackmail: that once you did this and that under those conditions, and today I will use it against you. Those were the conditions created by the state, created as such, but one cannot pull up the past like this; it’s unwise. And a certain amnesty must be granted. There are many such issues that we see on social media today, unfortunately, but they are not regulated at the legislative level. And this is what we need to do.
Educational reform is essential. As an educator, I can say that this is a very important issue. Currently, under the leadership of Oksen Lisovyi and his deputies, some initiatives have begun, such as consolidating universities into larger university units. I support this reform, although I understand that there are challenges. Overall, I believe it’s the right direction because, on average, Ukraine has 2.5 times more universities per capita than the United Kingdom. This means there are many small, low-quality universities, and half of them should be closed. I say this even as the founding rector of a private university. I believe that most private universities in Ukraine do not offer any real quality; they just churn out diplomas and should be closed, along with some state universities.
Of course, there’s much more to discuss, but these are the issues that concern me the most. I invite the readers of this interview to become part of American University Kyiv and Ukrainian American House. I would like you to follow what we are doing, what we are involved in, and perhaps become partners in some areas. There’s a lot of work to be done. We are doing a lot, but together we can achieve even more. There’s a great African proverb: “If you want to run fast, run alone; if you want to run far, run together.” I invite you to run for the long distance and to run together!
