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EBA has developed support measures for businesses in frontline regions

10/ 03/ 2025
  According to the Fourth Rapid Damage and Needs Assessment (RDNA4), the total economic, social, and other financial losses caused by the war in Ukraine from February 2022 to December 2024 amount to approximately $589 billion. However, the real cost, which includes reconstruction and compensation needs, exceeds trillions of dollars. The russian invasion has caused significant damage to residential buildings, production facilities, and industrial sites, with frontline areas suffering the most destruction. Additionally, these regions are experiencing the highest population outflow. The European Business Association has analyzed the key challenges faced by businesses operating in frontline regions and developed proposals to support enterprises in these areas. Businesses in these regions require greater attention and assistance to continue their operations. To address this, EBA experts have formulated a set of recommendations aimed at supporting companies, stabilizing the business environment, and creating conditions for recovery. These recommendations are intended for central and local authorities, donors, international organizations and governments, banks, and financial institutions. First, the EBA proposes creating mechanisms to compensate for military risks for domestic and foreign investors. Additionally, the Association calls for predictable mobilization measures and considers increasing the quota for reserving conscripted employees to 100% for critically important enterprises in frontline areas. Other proposed measures include: Tax policy changes – reducing the military tax to 1.5% and the unified social contribution to 10% for employers in frontline regions, introducing temporary exemptions from land and property taxes, and suspending the automatic blocking of tax invoices. Financial and credit support – expanding the Affordable Loans 5-7-9% program, offering preferential loans for restoring damaged assets in frontline areas, restructuring existing loans, and modifying the e-Work program. Logistical and infrastructure support – implementing mechanisms to compensate for certain transportation costs, providing tax incentives for transport companies operating in frontline regions, and introducing tariff discounts for transportation services. Special economic zones and workforce retention – creating special economic zones, encouraging the return of economically active populations, reforming the education sector, supporting exports, differentiating air raid alerts, assisting with demining efforts, and more. A full list of recommendations can be found in the document: EBA Proposals for Supporting Businesses in Frontline Areas The European Business Association has regional offices in Kharkiv, Odesa, Dnipro, and Lviv, actively addressing the challenges and needs of businesses across different regions of Ukraine.

According to the Fourth Rapid Damage and Needs Assessment (RDNA4), the total economic, social, and other financial losses caused by the war in Ukraine from February 2022 to December 2024 amount to approximately $589 billion. However, the real cost, which includes reconstruction and compensation needs, exceeds trillions of dollars.

The russian invasion has caused significant damage to residential buildings, production facilities, and industrial sites, with frontline areas suffering the most destruction. Additionally, these regions are experiencing the highest population outflow.

The European Business Association has analyzed the key challenges faced by businesses operating in frontline regions and developed proposals to support enterprises in these areas.

Businesses in these regions require greater attention and assistance to continue their operations. To address this, EBA experts have formulated a set of recommendations aimed at supporting companies, stabilizing the business environment, and creating conditions for recovery. These recommendations are intended for central and local authorities, donors, international organizations and governments, banks, and financial institutions.

First, the EBA proposes creating mechanisms to compensate for military risks for domestic and foreign investors. Additionally, the Association calls for predictable mobilization measures and considers increasing the quota for reserving conscripted employees to 100% for critically important enterprises in frontline areas. Other proposed measures include:

Tax policy changes – reducing the military tax to 1.5% and the unified social contribution to 10% for employers in frontline regions, introducing temporary exemptions from land and property taxes, and suspending the automatic blocking of tax invoices.

Financial and credit support – expanding the “Affordable Loans 5-7-9%” program, offering preferential loans for restoring damaged assets in frontline areas, restructuring existing loans, and modifying the “e-Work” program.

Logistical and infrastructure support – implementing mechanisms to compensate for certain transportation costs, providing tax incentives for transport companies operating in frontline regions, and introducing tariff discounts for transportation services.

Special economic zones and workforce retention – creating special economic zones, encouraging the return of economically active populations, reforming the education sector, supporting exports, differentiating air raid alerts, assisting with demining efforts, and more.

A full list of recommendations can be found in the document:

EBA Proposals for Supporting Businesses in Frontline Areas

The European Business Association has regional offices in Kharkiv, Odesa, Dnipro, and Lviv, actively addressing the challenges and needs of businesses across different regions of Ukraine.

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