A full-scale war became an existential challenge for the Ukrainian industry. Manufacturing enterprises have been forced to actively cut expenditures for innovation, shifting the focus from development to survival. At the same time, businesses see opportunities to restore innovative activity with the help of industry support programs, fiscal incentives, and other measures at the state level.
Millions of people and thousands of businesses in Ukraine remain without electricity every day due to damage to infrastructure damage caused by Russian shelling. For two months in a row, the Russian Federation has been launching rocket attacks on the civilian infrastructure of Ukraine every week. The target of this damage was the network of substations and transformers that provide electricity transmission from generating plants.
In August 2022, the production recovery in Ukraine continued, but the dynamics of the indicators of the economic conditions indicate a possible slowing down of the recovery trend in 6 months perspective. This is indicated by several important factors.
A month ago, Ukraine and the EU signed a road agreement that simplified road freight requirements between the parties. The arrangement proved to be mutually beneficial – trade volumes increased, and the cost of transportation from Ukraine decreased.
Ukraine’s manufacturing sector suffers war losses, but most industries keep optimism about the future. However, manufacturers that secure the basic human needs (food, clothing, and shoes) demonstrate the best production and recovery results.
Of course, everyone would be delighted if the supermarkets were full of quality Slovak fruit, vegetables, meat, and other products. However, this ideal cannot be achieved by a policy of self-sufficiency, but by a policy of cooperation.
In this episode, we talk about business in light of the war in Ukraine, the World Economic Forum in Davos, Conference on the Future of Europe, and lobbying.
The need for comprehensive information on the economic situation is important for economic policy during the full-scale Russian invasion of Ukraine, which led to the seizure of Ukrainian territories, terror against civilians, and destruction of industrial facilities and infrastructure in Ukraine.
The directive imposing a pan-EU 15 percent minimum effective corporate income tax on large companies, would, according to the European Commission, address tax challenges caused by digitalization and ensure that companies pay “their fair share of tax.”
Cooperating with Russia is no more a legal threat due to sanctions nor a mere corporate responsibility issue. It has become a much more fundamental issue of morality.
