Most companies will stay in Ukraine regardless of the duration of the war – EBA

The survey showed a high level of business adaptability and financial stability

According to the European Business Association (EBA), 77% of its member companies plan to continue operating in Ukraine regardless of the duration of the war. Another 19% are undecided, and only 4% may reconsider their presence in the event of a protracted conflict.

Only 32% of business leaders believe that the hostilities will end in 2025, while 25% are convinced of the opposite, and 43% cannot predict the situation. Despite the war, three quarters of companies (75%) are operating in full, 24% are operating with restrictions, and 1% are not operating.

The main difficulties remain a shortage of staff due to mobilization (75%), restrictions on the geography of operations (55%), and forced downtime due to air raids (41%). At the same time, business is showing resilience: the share of managers who are positive about the situation in their companies has increased from 27% to 40% over the past six months.

Business expectations have also become more optimistic. Only 29% predict a deterioration in 2025 (compared to 56% in the previous survey), and 32% expect an improvement, which is twice as much as before. Financial reserves of companies have also increased: 72% have a reserve for a year or more.

Business losses due to the war remain significant: 25% of companies have suffered losses of less than $1 million, 24% have lost $1-10 million, and 16% have lost more than $10 million. Only 11% have not suffered any losses, and 24% cannot estimate them.

Support for the Armed Forces remains stable: 72% of companies help their mobilized employees, 56% provide financial support, and 35% provide products. 85% of companies have mobilized employees, and the trend is upward.

Only 9% of companies have relocated due to the war, including 7% within Ukraine and 2% abroad. Main business needs:

• improving the booking of employees;
• easing currency restrictions;
• a moratorium on inspections and war risk insurance.

“In an increasingly turbulent world, businesses with experience operating in Ukraine already have a certain competitive advantage. For three years, our companies have demonstrated impressive adaptability and strong results despite numerous challenges. While making predictions remains difficult, most companies in our survey reaffirm their commitment to the Ukrainian market. The road ahead does not appear to be getting any easier, so this resilience and determination from businesses are truly inspiring,” said Anna Derevyanko, Executive Director of the European Business Association.

According to the EBA survey, if the military tax is increased to 5%, about 55% of Ukrainian companies will not be able to compensate their employees for this difference. As a result, this will lead to a decrease in real incomes of employees.