The ongoing Russian invasion has severely affected the society and economy of Ukraine. Despite that, Ukrainian companies demonstrate remarkable levels of strength and adaptability. The entrepreneurial spirit in Ukraine remains strong, with over 200,000 new individual businesses registered amidst the full-scale war. These and other Ukrainian enterprises have been successfully finding growth opportunities both within the country and abroad.

The IT sector has emerged as a crucial contributor to the Ukrainian economy. According to the IT Ukraine Association, the tech industry exported products and services worth EUR 5.5 billion in the first ten months of 2022, marking a 10% annual growth. 71% of Ukrainian IT companies were forced to relocate after the start of the war. The largest share (40%) of those who decided to move abroad chose Poland.

A considerable number of people and businesses stayed in Ukraine but relocated to safer areas. The population of Lviv, a picturesque city located in Western Ukraine, increased from 800 thousand to two million people. More than 200 different enterprises from other parts of Ukraine relocated to the Lviv area. The average price per sqm in the region increased by 82.7% over the year, up to EUR 1,145.

It is important to note that Ukraine has not been left alone to deal with the impact of the war. Several organizations, countries, companies, and individuals have offered various forms of support. For example, the European Bank for Reconstruction and Development (EBRD) committed up to EUR 3 billion to keep Ukraine’s businesses and economy functioning, with additional promise to help with reconstruction efforts in the future. The European Innovation Council (EIC) decided to provide Ukrainian tech start-ups with EUR 20 million. At least 200 companies can count on receiving grants of up to EUR 60 thousand each.

Despite the challenges, Ukrainian businesses stay determined and resilient. The market in Ukraine holds significant potential for growth, with many international companies already participating in tenders, investing in companies and projects in Ukraine, and collaborating with Ukrainian talent all over the world.

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Written by Ms. Julia Morta, Spondeo