Key challenges with regard to doing business in Ukraine in 2024

Ukrainian business continues to demonstrate its remarkable resilience despite extremely challenging circumstances. However there remain a few key areas that this survey clearly shows where support is still needed to keep the economy running, attract investments and help fund the war effort.

Alexander McWhorter

AmCham Ukraine Board of Directors Vice Chair Citi Ukraine Country Officer

Respondents of the survey are the member companies’ representatives of AmCham Ukraine https://chamber.ua/.

61% or the respondents have been working in Ukraine for more than 20 years.

98% of companies operate today: 85% of members are fully operational, and 15% operate partially. They represent different business areas: ICT, Construction, Agriculture, Industrial products and equipment, healthcare, automotive, energy, food and beverage production, etc.

77% of companies didn't relocate any of their facilities or operations due to the proximity to war zones or safety concerns, while 23% relocated administrative offices (48%), warehouses and storage (40%), research and development centers (32%), and manufacturing plants/factories (12%).

83% of companies have access to sufficient working capital financing. 61% of companies have sufficient access to longer-term growth/project financing. 29% of companies are engaged in financing discussions with an IFI (e.g. EBRD, IFC, DFC, EIB).

30% of the companies reported that their company’s physical assets (factory/warehouse/office etc.) have been damaged during the war, 4% have their assets under occupation.

For 54% of the companies the challenges related to infrastructure, utilities, or transportation due to the war include: Transportation and logistics issues, Disruptions in utility services (electricity, water, etc.) Increased costs for maintenance and repairs, Communication network disruptions.

77% of the companies have not considered relocating any of its facilities or operations due to the proximity to war zones or safety concerns.

Only 44% of respondents have sufficient access to war risk insurance, for 56% of the companies that do not, this makes an impact on their business operations.

76% of AmCham members see a significant problem in the functioning of the judicial system. Out of them, 65% think the judicial system is quite ineffective and requires significant improvements, and 35% believe the judicial system is generally effective but requires some changes. Only 24% of members think the judicial system is effective and does not require any changes.

The key challenges of doing business in 2024 are reservation of employees from military service (80%), safety and security of staff (75%), employees' health and mental well-being (50%), electricity outages (50%), Russia's missile attacks on vital infrastructure and business assets (45%).

Companies' forecast on the economic situation during the next 12 months: 45% believe it will remain the same, 43% think it will deteriorate, and 12% believe the situation will improve.

Visit the website to read the full report AmCham/Citi Survey. Ukraine Wartime Business Assessment - The American Chamber of Commerce in Ukraine