Key business priorities for 2024

26/ 01/ 2024

2023 was a challenging year for businesses and the countrys economy. Some economic indicators showed a slight recovery, in particular, Ukraines real GDP grew by 5-5.5%, according to various estimates. This is a recovery after a sharp decline of 28.8% in 2022. At the same time, the hryvnia has shown greater resilience, inflation has stabilized, etc. Although, of course, it is still far from pre-war levels. Businesses also continued to operate in the face of instability. According to the EBAs research, companies plans for 2024 include continuing to operate and support the Armed Forces and employees. Some companies are even planning investment projects (the average cost of which is up to $8 million). The European Business Association, for its part, will continue to support business in Ukraine in 2024 to be its voice, to be in dialogue with the authorities, and to jointly develop important changes for the country. In addition, through Global Business for Ukraine, the initiative will continue to work on economic diplomacy, serving as a bridge for Ukrainian businesses to enter foreign markets and for foreign businesses to enter Ukraine. At the same time, to support business in 2024, the community has identified 7 priorities, the lions share of which relate to Ukraines steady progress on the path to European integration. First, it is about harmonizing national legislation with EU legislation. The community has 26 open and industrial committees that bring together business, and each committee has a European integration direction as a priority. Secondly, the issue of mobilization and reservation of company employees should be resolved to ensure a balance between the countrys economic and military interests. After all, people are an important component of both the Armed Forces of Ukraine and the economic front. Therefore, it is important to balance the interests of these two areas. After all, a working business means a working economy, and it is a business that pays taxes, which, in particular, helps finance the military. Of course, business understands that the war is ongoing, but business also works and plans new projects. Therefore, dialogue is important, and the EBA has repeatedly submitted proposals in the context of mobilization and booking. So we hope that they will be taken into account, in particular, in the draft law on mobilization, which will soon be published and considered again (after revision). Third, the launch of an industrial platform for dialogue with the EU in the Association. Thus, in the context of the start of negotiations on Ukraines accession to the EU, the EBA seeks to be a voice for business at this level. In addition, the community has the relevant expertise, analysis, etc., as it has been actively discussing European integration issues for almost the entire period of the communitys existence (which turns 25 in 2024). Therefore, this platform will help to bring the voice of business to the negotiations. Fourth, facilitating EU-Ukraine international trade so that businesses can continue to operate not only in Ukraine but also expand to European markets, integrate into European supply chains, strengthen logistics capacities, and have a dialogue with the authorities of other countries to resolve issues such as the recent situation on the Ukraine-Poland, Ukraine-Romania borders, etc. Fifth, promoting further currency liberalization as a tool to encourage current and potential investors. In particular, this means repatriation of dividends, repayment of interest on old loans from non-residents, resumption of SWIFT transfers for, among other things, investing abroad, increasing the limit on transfers from foreign currency cards of Ukrainian banks to foreign bank cards (third stage), etc. Again, in this aspect, it is important to maintain a balance between, on the one hand, currency regulation to preserve the macroeconomic stability of the country and, on the other hand, support for investors who want to enter and work in the country and receive honestly earned income (because despite the importance of the social component, an important business goal is to make a profit and be able to dispose of it). Therefore, we sincerely hope the next stages of currency liberalization will be completed this year. Sixth, energy sustainability, and efficiency, in particular in the context of further integration of Ukraine and the EU. Here, we are talking about a further adaptation of legislation and development of an investor-friendly regulatory framework, the introduction of market mechanisms for regulating energy (renewable energy, gas, electricity, etc.), decentralization and diversification of the sector, etc. Seventh, promoting the expansion of business financing and risk insurance instruments. Thus, in this aspect, in particular, but not exclusively, we are talking about expanding insurance instruments against military risks and increasing the use of existing insurance programs (MIGA, insurance programs of Germany, Poland, etc.), but also promoting the expansion of lending opportunities from the banking sector, obtaining funding through donor projects and grants, etc. Anna Derevyanko. Executive Director of the European Business Association. We sincerely hope 2024 will be a productive and successful year for both business and Ukraine. I would also like to emphasize the importance of positive changes in the country′s fundamental reforms - the fight against corruption and the establishment of the rule of law in the country. After all, they are the necessary components that affect not only the country′s business climate but also the inflow of new investments into the country, reputation, and trust, which are now an extremely important currency for Ukraine and must not be lost in any way.

2023 was a challenging year for businesses and the country’s economy. Some economic indicators showed a slight recovery, in particular, Ukraine’s real GDP grew by 5-5.5%, according to various estimates. This is a recovery after a sharp decline of 28.8% in 2022. At the same time, the hryvnia has shown greater resilience, inflation has stabilized, etc. Although, of course, it is still far from pre-war levels.

Businesses also continued to operate in the face of instability. According to the EBA’s research, companies’ plans for 2024 include continuing to operate and support the Armed Forces and employees. Some companies are even planning investment projects (the average cost of which is up to $8 million).

The European Business Association, for its part, will continue to support business in Ukraine in 2024 to be its voice, to be in dialogue with the authorities, and to jointly develop important changes for the country. In addition, through Global Business for Ukraine, the initiative will continue to work on economic diplomacy, serving as a bridge for Ukrainian businesses to enter foreign markets and for foreign businesses to enter Ukraine.

At the same time, to support business in 2024, the community has identified 7 priorities, the lion’s share of which relate to Ukraine’s steady progress on the path to European integration.

First, it is about harmonizing national legislation with EU legislation. The community has 26 open and industrial committees that bring together business, and each committee has a European integration direction as a priority.

Secondly, the issue of mobilization and reservation of company employees should be resolved to ensure a balance between the country’s economic and military interests. After all, people are an important component of both the Armed Forces of Ukraine and the economic front. Therefore, it is important to balance the interests of these two areas. After all, a working business means a working economy, and it is a business that pays taxes, which, in particular, helps finance the military. Of course, business understands that the war is ongoing, but business also works and plans new projects. Therefore, dialogue is important, and the EBA has repeatedly submitted proposals in the context of mobilization and booking. So we hope that they will be taken into account, in particular, in the draft law on mobilization, which will soon be published and considered again (after revision).

Third, the launch of an industrial platform for dialogue with the EU in the Association. Thus, in the context of the start of negotiations on Ukraine’s accession to the EU, the EBA seeks to be a voice for business at this level. In addition, the community has the relevant expertise, analysis, etc., as it has been actively discussing European integration issues for almost the entire period of the community’s existence (which turns 25 in 2024). Therefore, this platform will help to bring the voice of business to the negotiations.

Fourth, facilitating EU-Ukraine international trade so that businesses can continue to operate not only in Ukraine but also expand to European markets, integrate into European supply chains, strengthen logistics capacities, and have a dialogue with the authorities of other countries to resolve issues such as the recent situation on the Ukraine-Poland, Ukraine-Romania borders, etc.

Fifth, promoting further currency liberalization as a tool to encourage current and potential investors. In particular, this means repatriation of dividends, repayment of interest on “old” loans from non-residents, resumption of SWIFT transfers for, among other things, investing abroad, increasing the limit on transfers from foreign currency cards of Ukrainian banks to foreign bank cards (third stage), etc. Again, in this aspect, it is important to maintain a balance between, on the one hand, currency regulation to preserve the macroeconomic stability of the country and, on the other hand, support for investors who want to enter and work in the country and receive honestly earned income (because despite the importance of the social component, an important business goal is to make a profit and be able to dispose of it). Therefore, we sincerely hope the next stages of currency liberalization will be completed this year.

Sixth, energy sustainability, and efficiency, in particular in the context of further integration of Ukraine and the EU. Here, we are talking about a further adaptation of legislation and development of an investor-friendly regulatory framework, the introduction of market mechanisms for regulating energy (renewable energy, gas, electricity, etc.), decentralization and diversification of the sector, etc.

Seventh, promoting the expansion of business financing and risk insurance instruments. Thus, in this aspect, in particular, but not exclusively, we are talking about expanding insurance instruments against military risks and increasing the use of existing insurance programs (MIGA, insurance programs of Germany, Poland, etc.), but also promoting the expansion of lending opportunities from the banking sector, obtaining funding through donor projects and grants, etc.

Anna Derevyanko Executive Director of the European Business Association

We sincerely hope 2024 will be a productive and successful year for both business and Ukraine. I would also like to emphasize the importance of positive changes in the country′s fundamental reforms - the fight against corruption and the establishment of the rule of law in the country. After all, they are the necessary components that affect not only the country′s business climate but also the inflow of new investments into the country, reputation, and trust, which are now an extremely important currency for Ukraine and must not be lost in any way.