by the EESC Employers' Group

On year after Russia's unjustifiable invasion in Ukraine, the Employers' Group met with the leaders of Ukrainian business organisations to discuss the current business situation in Ukraine and get first-hand information on what is needed for Ukrainian companies to survive now as well as with a view to reconstruction.

In the last year, Ukraine's GDP plunged by 30-35%. The total cost of direct losses is valued at almost USD130 billion.  According to various estimates, between 2.5 and 5 million people lost their jobs and inflation sits at 26.6 %.

"With many employees, clients and partners moving abroad, losing their companies in shelling and bombings, going to the frontline to fight, it is hard to maintain high levels of income, particularly for SMEs" said Kateryna Glazkova, executive director of the Union of Ukrainian Entrepreneurs. 

Companies face a number of challenges:  the inability to regain clients they lost due to disruption of supply chains, delocalisation or other issues; the lack of financial resources; the general feeling of insecurity and the inability to export their goods and services are a matter of concern for most CEOs.

Nearly half of the member companies of the European Business Association are positive about their business development in 2023. These are the conclusions of the study Business Forecast 2023 which was conducted by the EBA and Raiffeisen Bank with analytical support from Gradus Research. This year’s results demonstrate an expected deterioration in the sentiments and forecasts of top managers. For comparison, last year 83% of CEOs made positive forecasts.

To improve the situation, the President of the Ukrainian Chamber of Commerce Gennadiy Chyzhykov, stressed the need for businesses to start exporting again. "It's a question of survival," he said.

"Stimulating export activities is crucial in restoring the disrupted supply chains, gaining European partners, learning from European experience. For that to happen, green corridors need to be continued and enhanced", agreed Anna Derevyanko, executive director of the European Business Association (EBA).

"The association to the Single Market programme has paved the way for Ukrainian businesses to access the EU market and created potential new opportunities, but B2B matching must be improved so that they get the necessary assistance, consultation and contacts to become operational", Anna Derevyanko continued.  "It's not a sprint it's a marathon," she added.

The Employers’ Group has been fully supportive of EU action to assist Ukraine in its time of need and to start work on rebuilding Ukraine, even before the war is over. We have engaged with our employer counterparts in Ukraine and have pushed our EU policymakers to do whatever it takes to help Ukraine first survive and then defeat Russia's aggression. As President Stefano Mallia stated: " Supporting Ukraine's businesses, for example by facilitating market access, is in the fundamental interest of Europe. The last months have proven that Ukraine and the EU are logical partners. Let's build on this basis."