Bohdan Myronenko, Expert on Eastern Europe and Balkans, ADASTRA Think Tank
On 17 and 18 October 2022, EU4Business Initiative annual report was presented at the Eastern Partnership (EaP) Business Forum hosted by the Czech Government. The EU4business initiative provides support in three priority areas: Access to Finance (A2F), access to Business Development Services (BDS) and Business Enabling Environment (BEE), with a total budget of nearly €900 million. The 2022 report shows a 9% increase in the number of SMEs supported by the EU compared to the previous year, with over 78,000 companies receiving assistance. SMEs receiving support have generated an estimated extra income of €2 billion in total and created an estimated 66,000 new jobs. Among them, a third were women-owned companies.
We have interviewed key experts from the EaP countries to find out the latest updates on their business environment and the EU’s assistance in speeding up the economic boost in their countries. Here are the answers from Ukraine.
What progress do you observe in your country’s business environment compared to the previous year?
Despite the fact that a terrible war is currently ongoing in my country, Ukrainian business circles are demonstrating a high level of patriotism and courage and continue to pursue their activities – thereby paying taxes, creating jobs and demonstrating a high level of optimism. From a purely economic perspective, there has undoubtedly been a decline since February 24, but the situation shows signs of improvement – after all, the population has not completely lost the means of existence while a need to employ more people and to relocate production from the temporarily occupied areas has arisen. The agricultural sector has suffered due to the occupation of some parts of Ukraine’s territory with arable grounds but the industry and the sector of services have managed to restore yet they still struggle due to the unstable situation with the national energy grid.
What areas of business support from the EU demonstrated the most tangible results?
As far as I am concerned, all spheres of Ukraine’s economy have received support from the EU funds and have demonstrated significant output. Of course, those which are more “mobile” (that is, not so confined to land and/or facilities but rather to self-standing workers – like the IT and the creative sectors) made it much quicker, in particular by relocating employees to the safer territories – however, industrial and agricultural enterprises as well as artisans have also received help from the EU. Therefore, I would say that, as well as artisans, from the EU’s policies – but the effect shows itself in a various manner as depends on the specific traits of a particular sphere of activities.
What other joint projects with the EU could be most useful for your country’s economic boost?
I would say that the first and foremost, most preferable way to assist the business is providing aid to the Armed Forces as only victory can guarantee a secure tomorrow for any Ukrainian employer and employee. However, it is also very important for the Ukrainian business eager and able to offer its products on the EU market that the respective regulations and the Single Market standards be – at least temporarily – slightly amended to provide business with the opportunity to satisfy the demands of the European clients in a more efficient and speedy way. Also, the conditions of the Single Market for Services can be amended in order for the Ukrainian labor force to obtain easier and more “friendly”, unbureaucratic conditions of work in the EU countries in order to work without burdens and help Ukraine’s economy with, inter alia, their donations.
