Kyiv, Tuesday, September 19, 2023
The American Chamber of Commerce in Ukraine, jointly with AmCham member company Citi Ukraine, conducted the survey "Doing Business in Wartime Ukraine". The survey aims to assess the state of business in Ukraine after 1.5 years of Russia's brutal full-scale invasion, identify key concerns and expectations of the business community over the next six months, and get an overall outlook on doing business and investing in Ukraine in 2024.
84% of members are fully operational after 1.5 years of Russia's full-scale war in Ukraine. 16% continues to operate partially.
Respondents identified their companies' top 5 key challenges with regard to doing business over the next six months. The #1 challenge is the safety and security of staff (91%). Other challenges are Russia's missile attacks on vital infrastructure and business assets (66%), employees' health and mental well-being (65%), economic and consumer recession (45%), and access to electricity, water, mobile network, or heat supply (44%).
AmCham member companies continue to support their employees during the war. Remote work and/or flexible schedule (93%), additional financial support (67%), and mental health and well-being programs (57%) are the most common ways of support.
72% of business representatives give an upbeat forecast on their companies' financial health at the end of 2023: 45% will achieve planned financial results; 27% will achieve more than was planned. 22% will fail to achieve planned financial results.
78% of respondents are quite confident about Ukraine's economic recovery in 2024: 59% of them are somewhat confident, and 19% are confident. 22% expressed doubts about next year's economic recovery.
AmCham members were asked to describe their overall outlook on doing business and potentially investing in Ukraine in 2024. 38% are optimistic, 46% indicated a neutral outlook, while 16% expressed pessimism.
According to the survey results, the biggest opportunity to attract Foreign Direct Investment to Ukraine in 2023 and beyond will be Ukraine's victory, country-wide rebuilding and recovery, EU accession, public-private partnerships to attract funds and state programs to stimulate investments, and security guarantees/insurance for investments. Companies see opportunities in the following spheres: security and defense, infrastructure and construction, agriculture, IT and technologies, energy and renewables, and high-tech production.
Structural reforms (incl. real and effective judicial reform), rule of law, level playing field, and fight against corruption are what AmCham member companies identified as the government's support needed to unblock investment for companies post-war.
The most helpful services/goods for companies to attract more investment in their industries post-war are demining, IT and digital solutions, infrastructure and logistics, financial services, manufacturing and construction.
AmCham members were also asked about their key takeaways from doing business on the ground during Russia's full-scale invasion of Ukraine. The key pillars named were resilience and unity, people first concept, adaptability and flexibility, crisis management and planning, and continuity amid hardship.
127 CEOs and top managers of AmCham member companies took part in the survey, conducted on September 6 – September 15, 2023. 70% of the respondents are CEOs.
Andy Hunder, President of the American Chamber of Commerce in Ukraine, said: "84% of companies are fully operational after 1.5 years of Russia's full-scale war in Ukraine, and our team puts every single effort into supporting these business heroes. Ukraine is open for business, and we are getting this message across globally, as Ukraine creates opportunities that no ambitious investors should miss."
Alexander McWhorter, Vice-Chair of AmCham Ukraine Board of Directors, Country Officer and Corporate Banking Head of Citi Ukraine, stressed: “The Ukrainian private sector continues to demonstrate its incredible resilience in the face of immense challenges. As the security situation continues to improve, there will be more and more investment opportunities for global companies to partner with players in this strong, resilient, and dynamic market, and we are keen to help facilitate existing and new investments.”
Full results of the Survey are available here.
About AmCham Ukraine:
The American Chamber of Commerce is Ukraine's most influential international business association that has been serving 600+ members in Ukraine since 1992, delivering the shared voice of US, international, and Ukrainian companies, who invested over $50 billion in Ukraine and remain committed to the country. For more information, please visit our website and Rebuild Ukraine page.
About Citi Ukraine:
Citi Ukraine (JSC Citibank) has had a presence in the country for more than 20 years, serving multinationals, large Ukrainian corporations, some public sector in the country, and mid-sized clientele. In 2020, JSC Citibank obtained the Expert Rating Credit Agency's highest credit rating of AAA on the national scale and was recognized Best Corporate/Institutional Digital Bank in Ukraine by Global Finance World's Best Digital Bank Awards 2020 as well as Market Leader in Ukraine by Euromoney Cash Management Survey 2020 for corporates.