Business will continue to operate in Ukraine even in case of invasion

28/ 01/ 2022

As reported by 45% of the companies surveyed by the European Business Association, they plan to stay in Ukraine and continue their operation even in the event of a military invasion. At the same time, 17% of the companies consider the relocation to Western Ukraine. Other 10% think of leaving the country in the worst-case scenario, while 7% fear that external aggression may lead to the closure of their business. A quarter of the EBA member companies see the situation at eastern borders as a psychological attack through disinformation in the media. Meanwhile, the majority, namely 67%, believe that Ukraine and the international community should stay alert. Forewarned is forearmed: 40% of EBA member companies have their contingency plans, 40% think of preparing them, and 15% are currently without any plans. At the same time, companies complain about the difficulties of plan preparation as there are too many potential scenarios to be considered. Most of the companies with plan B formed it with the consideration of three priorities. The first is providing safety for people (employees and their families, customers). Possible actions to be considered in this context include relocation, evacuation, emergency communication, and support. The second priority concerns the security of assets, documents, and data, financial stability. And the third is ensuring the viability of the company and business continuity. Common plans for the preservation of assets include the physical protection of property and equipment or its relocation to other regions, strengthened information security, withdrawal of funds, insurance. However, many companies noted that they consider people as their main asset, so the priority will be to ensure the safety and health of their team. The vast majority, namely 58% of companies plan to retain their team, while for 14% this is not even a question – they continue to hire and develop people. Only 14% say they will resort to laying off some employees or sending them on unpaid leave, and 4% think of reducing the salaries. We also asked companies what factors will be most important for their business in the case of an emergency. For most respondents (91%), it is a stable operation of the infrastructure which includes telecommunications, financial, ground-based logistics. Meanwhile, 62% consider it important to have constant communication and enough information from country leaders. For 60%, the most essential is to have a smooth and coordinated work of state agencies & services. Therefore, we urge the authorities to pay attention to these aspects that can heavily impact business operations at a critical moment; also communicate more with companies because this is what helps to reduce misinformation and tension. Now, more than ever, it is worth keeping calm and continuing to do our job – investing, developing projects and people, holding meetings, producing goods. In fact, we at the EBA see that this is exactly what the business is doing now. However, we cannot rule out hypothetical threats posed by activities at the borders. So, lets be prepared with Plan B, C or D – and hope that we will never need them, said Anna Derevyanko, EBA Executive Director. For reference: The survey was conducted from January 24 to 27. Altogether, 136 CEOs and EBA member companies’ representatives took part in the survey.

As reported by 45% of the companies surveyed by the European Business Association, they plan to stay in Ukraine and continue their operation even in the event of a military invasion. At the same time, 17% of the companies consider the relocation to Western Ukraine. Other 10% think of leaving the country in the worst-case scenario, while 7% fear that external aggression may lead to the closure of their business.

A quarter of the EBA member companies see the situation at eastern borders as a psychological attack through disinformation in the media. Meanwhile, the majority, namely 67%, believe that Ukraine and the international community should stay alert.

Forewarned is forearmed: 40% of EBA member companies have their contingency plans, 40% think of preparing them, and 15% are currently without any plans. At the same time, companies complain about the difficulties of plan preparation as there are too many potential scenarios to be considered.

Most of the companies with “plan B” formed it with the consideration of three priorities. The first is providing safety for people (employees and their families, customers). Possible actions to be considered in this context include relocation, evacuation, emergency communication, and support. The second priority concerns the security of assets, documents, and data, financial stability. And the third is ensuring the viability of the company and business continuity.

Common plans for the preservation of assets include the physical protection of property and equipment or its relocation to other regions, strengthened information security, withdrawal of funds, insurance. However, many companies noted that they consider people as their main asset, so the priority will be to ensure the safety and health of their team.

The vast majority, namely 58% of companies plan to retain their team, while for 14% this is not even a question – they continue to hire and develop people. Only 14% say they will resort to laying off some employees or sending them on unpaid leave, and 4% think of reducing the salaries.

We also asked companies what factors will be most important for their business in the case of an emergency. For most respondents (91%), it is a stable operation of the infrastructure which includes telecommunications, financial, ground-based logistics. Meanwhile, 62% consider it important to have constant communication and enough information from country leaders. For 60%, the most essential is to have a smooth and coordinated work of state agencies & services. Therefore, we urge the authorities to pay attention to these aspects that can heavily impact business operations at a critical moment; also communicate more with companies because this is what helps to reduce misinformation and tension.

“Now, more than ever, it is worth keeping calm and continuing to do our job – investing, developing projects and people, holding meetings, producing goods. In fact, we at the EBA see that this is exactly what the business is doing now. However, we cannot rule out hypothetical threats posed by activities at the borders. So, let’s be prepared with “Plan B, C or D” – and hope that we will never need them, “said Anna Derevyanko, EBA Executive Director.

For reference:

The survey was conducted from January 24 to 27. Altogether, 136 CEOs and EBA member companies’ representatives took part in the survey.