Kateryna Morozova Presents EBA’s Work on Supporting Businesses in Frontline Territories at “Front City” Event in Odesa

11/ 09/ 2026

On September 9, Odesa hosted the regional meeting “Front City: Special Conditions for Business Development in Frontline Territories,” focused on the situation and needs of businesses in the Odesa region. The event was held in a hybrid format at the premises of the Odesa Regional State (Military) Administration as part of the project “Special Economic Regime (SER) for Ukraine’s Frontline Territories as a Tool for Economic Resilience and SME Resilience During Wartime.” The project is implemented at the initiative of the National SME Business Coalition with the support of the Center for International Private Enterprise (CIPE), while administrative coordination is provided by the 4BUSINESS Business Association. Kateryna Morozova, Head of the Southern Ukrainian Office of the European Business Association, participated in the meeting and presented EBA’s current proposals regarding the framework for further state policy to support businesses in frontline territories. “Standard business support programmes are based on a certain average level of wartime risk, while companies that continue operating close to the frontline bear an additional cost simply for maintaining their presence in these territories. Therefore, EBA consistently advocates for moving from a logic of individual benefits towards a dedicated framework for the economic resilience of frontline territories. This is precisely the set of proposals we presented today to the business community and authorities of the Odesa region,” said Kateryna Morozova. Economic Resilience Framework for Eight Regions According to Kateryna Morozova, EBA proposes that the respective policy cover eight regions: Chernihiv, Sumy, Kharkiv, Dnipropetrovsk, Zaporizhzhia, Kherson, Mykolaiv, and Odesa. At the same time, being located in one of these regions should not automatically determine eligibility for support. The actual level of risk, logistics, frequency of attacks, and the ability to conduct economic activity should be taken into account within each region. EBA proposes that eligibility for special support mechanisms be determined not by a company’s legal registration, but by the criterion of actual economic activity, including verified indicators such as actual employment, location of assets, tax payments, and other relevant factors. War Risk Insurance and Access to Financing Insurance was one of the key issues addressed during the presentation. EBA proposes a multi-level architecture for war risk coverage, combining local insurers, international reinsurance, a state guarantee layer, and partial compensation of insurance premiums. For frontline businesses, it is important to distinguish between two different needs: recovery after damage has already occurred and support that enables a company to continue operating before such damage occurs. EBA proposes shifting the focus towards continuity of operations — ensuring that businesses can continue functioning despite attacks, disruptions, or emergency power outages. Regarding business financing, the Association proposes a dedicated frontline finance window with longer loan maturities, higher limits, and the possibility of financing CAPEX, including the restoration of damaged assets. EBA also proposes expanding the “Affordable Loans 5-7-9%” programme to medium-sized and large businesses operating in frontline territories. Tax Incentives and Job Retention Among the proposed tax instruments, EBA highlights a temporary reduction in the military levy and unified social contribution (USC) for employers that actually operate in frontline territories, as well as a zero rate of land and real estate tax for a defined period. Kateryna Morozova also highlighted EBA’s proposal to change the approach to evaluating grant programmes. For frontline regions, the key outcome should not only be the creation of new jobs, but first and foremost the ability of a business to remain operational, preserve its production capacity, and continue paying taxes— in other words, a shift from the logic of job creation to job retention. Human Capital, Mobilisation and Employee Reservation The human capital discussion included EBA’s position on maintaining the possibility of reserving up to 100% of conscript-eligible employees for critically important enterprises, subject to clear criteria. At the same time, EBA does not view workforce policy solely through the lens of employee reservation. It also calls for re-skilling programmes, greater engagement of veterans and internally displaced persons, employee housing as part of regional economic policy, expanded participation of women in industry, and instruments that help people return to economic activity. Demining as an Economic Instrument, Local Infrastructure and Energy EBA views frontline infrastructure as both an economic and security issue. This includes roads, bridges, utility networks, backup power supply, shelters, and mechanisms for rapid recovery following attacks. Frontline roads effectively serve defence, evacuation, critical supplies, and businesses simultaneously. Therefore, their restoration should be viewed as a shared economic and security function. In the energy sector, EBA proposes supporting distributed generation, backup power solutions for businesses, energy efficiency, and dedicated solutions for energy-intensive enterprises. The presentation also covered EBA’s approach to demining as a prerequisite for economic recovery, as well as the restoration of local infrastructure and energy systems in frontline communities. The discussion was joined by Dmytro Radulov, Deputy Head of the Odesa Regional State (Military) Administration; Stepan Cherniavskyi, Deputy Chairman of the Verkhovna Rada Committee on Agrarian and Land Policy; representatives of relevant Verkhovna Rada committees; Yuliia Didenko, Chair of the Subcommittee on Personal Income Taxation, Unified Social Contribution and Other Payroll Charges; as well as members of the Regional Council of Entrepreneurs of the Odesa region. The EBA Southern Ukrainian Office thanks the organisers for the opportunity to present the Association’s proposals to a broad range of stakeholders and to contribute to the development of concrete legislative solutions to support businesses operating in frontline territories.

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On September 9, Odesa hosted the regional meeting “Front City: Special Conditions for Business Development in Frontline Territories,” focused on the situation and needs of businesses in the Odesa region. The event was held in a hybrid format at the premises of the Odesa Regional State (Military) Administration as part of the project “Special Economic Regime (SER) for Ukraine’s Frontline Territories as a Tool for Economic Resilience and SME Resilience During Wartime.” The project is implemented at the initiative of the National SME Business Coalition with the support of the Center for International Private Enterprise (CIPE), while administrative coordination is provided by the 4BUSINESS Business Association.

Kateryna Morozova, Head of the Southern Ukrainian Office of the European Business Association, participated in the meeting and presented EBA’s current proposals regarding the framework for further state policy to support businesses in frontline territories.

“Standard business support programmes are based on a certain average level of wartime risk, while companies that continue operating close to the frontline bear an additional cost simply for maintaining their presence in these territories. Therefore, EBA consistently advocates for moving from a logic of individual benefits towards a dedicated framework for the economic resilience of frontline territories. This is precisely the set of proposals we presented today to the business community and authorities of the Odesa region,” said Kateryna Morozova.

Economic Resilience Framework for Eight Regions

According to Kateryna Morozova, EBA proposes that the respective policy cover eight regions: Chernihiv, Sumy, Kharkiv, Dnipropetrovsk, Zaporizhzhia, Kherson, Mykolaiv, and Odesa.

At the same time, being located in one of these regions should not automatically determine eligibility for support. The actual level of risk, logistics, frequency of attacks, and the ability to conduct economic activity should be taken into account within each region.

EBA proposes that eligibility for special support mechanisms be determined not by a company’s legal registration, but by the criterion of actual economic activity, including verified indicators such as actual employment, location of assets, tax payments, and other relevant factors.

War Risk Insurance and Access to Financing

Insurance was one of the key issues addressed during the presentation. EBA proposes a multi-level architecture for war risk coverage, combining local insurers, international reinsurance, a state guarantee layer, and partial compensation of insurance premiums.

For frontline businesses, it is important to distinguish between two different needs: recovery after damage has already occurred and support that enables a company to continue operating before such damage occurs. EBA proposes shifting the focus towards continuity of operations — ensuring that businesses can continue functioning despite attacks, disruptions, or emergency power outages.

Regarding business financing, the Association proposes a dedicated frontline finance window with longer loan maturities, higher limits, and the possibility of financing CAPEX, including the restoration of damaged assets. EBA also proposes expanding the “Affordable Loans 5-7-9%” programme to medium-sized and large businesses operating in frontline territories.

Tax Incentives and Job Retention

Among the proposed tax instruments, EBA highlights a temporary reduction in the military levy and unified social contribution (USC) for employers that actually operate in frontline territories, as well as a zero rate of land and real estate tax for a defined period.

Kateryna Morozova also highlighted EBA’s proposal to change the approach to evaluating grant programmes. For frontline regions, the key outcome should not only be the creation of new jobs, but first and foremost the ability of a business to remain operational, preserve its production capacity, and continue paying taxes— in other words, a shift from the logic of job creation to job retention.

Human Capital, Mobilisation and Employee Reservation

The human capital discussion included EBA’s position on maintaining the possibility of reserving up to 100% of conscript-eligible employees for critically important enterprises, subject to clear criteria.

At the same time, EBA does not view workforce policy solely through the lens of employee reservation. It also calls for re-skilling programmes, greater engagement of veterans and internally displaced persons, employee housing as part of regional economic policy, expanded participation of women in industry, and instruments that help people return to economic activity.

Demining as an Economic Instrument, Local Infrastructure and Energy

EBA views frontline infrastructure as both an economic and security issue. This includes roads, bridges, utility networks, backup power supply, shelters, and mechanisms for rapid recovery following attacks.

Frontline roads effectively serve defence, evacuation, critical supplies, and businesses simultaneously. Therefore, their restoration should be viewed as a shared economic and security function.

In the energy sector, EBA proposes supporting distributed generation, backup power solutions for businesses, energy efficiency, and dedicated solutions for energy-intensive enterprises. The presentation also covered EBA’s approach to demining as a prerequisite for economic recovery, as well as the restoration of local infrastructure and energy systems in frontline communities.

The discussion was joined by Dmytro Radulov, Deputy Head of the Odesa Regional State (Military) Administration; Stepan Cherniavskyi, Deputy Chairman of the Verkhovna Rada Committee on Agrarian and Land Policy; representatives of relevant Verkhovna Rada committees; Yuliia Didenko, Chair of the Subcommittee on Personal Income Taxation, Unified Social Contribution and Other Payroll Charges; as well as members of the Regional Council of Entrepreneurs of the Odesa region.

The EBA Southern Ukrainian Office thanks the organisers for the opportunity to present the Association’s proposals to a broad range of stakeholders and to contribute to the development of concrete legislative solutions to support businesses operating in frontline territories.