Amid full-scale Russian military aggression, Ukrainian businesses have showcased remarkable resilience, buoyed by enduring optimism even as uncertainty clouds the horizon. This sentiment emerges from the monthly surveys conducted by the Institute of Economic Research and Political Consultations (IER), providing valuable insights into the ever-changing landscape of business activity in times of war.
Medium-sized private enterprises play an important role in the economy and social development. Medium-sized enterprises operating in domestic and foreign markets are a kind of “backbone” of the economy. Compared to small and large enterprises, medium-sized businesses have higher viability, better access to external financing, and “economies of scale” benefits.
The full-scale war that Russia waged against Ukraine has drastically impacted the situation in Ukraine. Many Ukrainians were forced to flee the country and seek safer regions or countries: according to estimates, about 8 million became refugees, while around 5 million are internally displaced people
In the aftermath of the outbreak of the full-scale invasion of Ukraine, the European Union (EU) has been facing the consequences of its misguided policy decisions from decades ago. Doing ‘business as usual’ with Russia, a country whose values are fundamentally different from those of the Western nations’, is always dangerous and may seem reckless.
“Keep your chin up” is the headline of the June issue of the New Monthly Enterprise Survey, a #NRES conducted by the Institute for Economic Research and Policy Consulting since May 2022. From June 15 to June 30, 2023, the heads of 530 enterprises located in 21 out of 27 regions of Ukraine answered questions about the current state of affairs at enterprises and their expectations for further business development.
The war caught Ukrainian customs in the process of reform. Before the war, the customs service in Ukraine was reformed in several stages. Some results have been achieved, although the main challenges, corruption, and inconsistent regulatory enforcement, still need to be overcome.
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.
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.
Ukraine is now a battlefield between good and evil. The new over the old. But everything will be fine. The Ukrainian people and our army can work miracles. In the meantime, the world cannot stay silent. A new day is coming. Let us stand together when it comes.
