Over 80% of Ukrainian businesses keep operating despite all-out war – survey
Over 80% of Ukrainian businesses have remained in their regions despite significant changes in the economic geography of Ukraine. This is stated in the research of the Center for Economic Recovery (CER) «Impact of the war on the economy of Ukraine: sectoral, regional and social aspects».
16.4% of enterprises were relocated (2.2% of them abroad). Another 3.3% plan to move but have not yet decided where. At the same time, more than 80.4% of enterprises did not relocate. Only 790 enterprises were relocated, 623 of which have already resumed work at the new location, the new survey says.
Russia's war directly affected 64% of the profits of Ukrainian enterprises. Large and medium-sized businesses accounted for almost 56% of the pre-war income of enterprises in the frontline areas. Together with medium-sized enterprises, they suffered the largest direct losses due to Russian aggression – $9 billion, and indirect losses reached $33.1 billion.
The blockade of Ukrainian seaports has led to a 35% decrease in exports. This is money lost to the budget.
More than 6 million Ukrainians have become forced migrants because of the war. These are laborers and experienced and highly skilled employees who are essential for Ukraine's sustainable recovery and economic growth.
The mining and metals sector faces significant challenges in 2022 due to proximity to the front lines and damaged supply chains. The production of steel products fell by 70%, mainly due to the loss of key facilities, such as Ilyich Iron and Steel Works and Azovstal plants in Mariupol and the reduction of the production of ArcelorMittal Kryvyi Rih.
