Recent massive missile attacks have affected the work of half of EBA businesses

21/ 10/ 2022

Almost half of the EBA companies, namely 47%, reported that the recent missile attacks on Ukraine have affected their operations to some extent. Thus, some companies were forced to suspend operations due to disruptions in electricity and internet, as well as for security reasons, which led to a partial loss of orders, suspension of projects, and downtime. At the same time, businesses understand the seriousness of the challenges in winter, so they are getting prepared. Thus, 82% of companies are preparing in case of interruptions in the supply of water, gas, and electricity, 56% of companies are preparing for attacks on critical infrastructure, transport networks, and enterprises, 53% – for interruptions in communication and the Internet. What preparatory measures does the business take? Companies prepare reserve equipment and stocks of raw materials, fuel, materials, develop security programs and business continuity plans, make monitoring and analytical reports on the development of the security situation in Ukraine, maintain cybersecurity measures, etc. Such preparatory measures are critical for the normal functioning of companies. Among the EBA members, 44% are currently working in full, 53% are working with restrictions, and only 3% are not working. It should be recalled that in July, 49% were fully operational and the statistics did not have any non-operational companies at all. Among the businesses that work partially, half have limited the geography of their activities, one-third have closed some offices/outlets/branches, and a quarter has transferred their activities online. The vast majority of companies, namely 79% continue to pay salaries to employees in full, and 18% do it with advance or additional payments. This is more than in July when 61% of companies paid full salaries. Another 15% of EBA businesses have reduced salaries, 8% were forced to send employees on unpaid leave. Another 7% are reducing staff, compared to 10% in the previous wave of the survey. In 85% of companies, some employees currently have temporary protection status abroad. Thus, 61% of the companies we surveyed have up to 10% of their staff abroad, 20% of companies have 10-40%, and another 4% of CEOs report that they have more than 40% of their team abroad. At the same time, 73% of businesses claim that they have enough financial resources for functioning and development, 61% estimate that they can hold out financially for a year or more (in July – 46%), another 26% – six months, and only 6% – a few months. Businesses have significantly increased financial reserves since March, although the number of companies that do not have them has slightly increased – up to 5% in October compared to 2% in July. Almost half of the respondents, namely 47%, have lost property or assets directly as a result of hostilities. At the same time, 40% report losses of up to 1 million dollars, another 35% - losses in the range of 1-10 million dollars, 15% - losses of more than 10 million. Only 5% of businesses have not suffered any losses. The total documented losses to date amount to at least EUR 437.5 million – according to information from EBA member companies. Companies continue their support and even increase it for Ukrainian civilians and the army. Currently, 57% support employees who defend the country, 47% - help financially, 43% - help with products, 24% - with services, 17% - with medicines, 14% - with means of protection/defense. It is extremely gratifying that today 83% are ready to join the post-war reconstruction of Ukraine. It should be reminded that in April there were 67% of such companies among the EBA member companies. For reference: The survey was conducted from October 12 to 19, 2022, participated by 118 CEOs of EBA member companies.

At the same time, businesses understand the seriousness of the challenges in winter, so they are getting prepared. Thus, 82% of companies are preparing in case of interruptions in the supply of water, gas, and electricity, 56% of companies are preparing for attacks on critical infrastructure, transport networks, and enterprises, 53% – for interruptions in communication and the Internet.

What preparatory measures does the business take? Companies prepare reserve equipment and stocks of raw materials, fuel, materials, develop security programs and business continuity plans, make monitoring and analytical reports on the development of the security situation in Ukraine, maintain cybersecurity measures, etc.

Such preparatory measures are critical for the normal functioning of companies. Among the EBA members, 44% are currently working in full, 53% are working with restrictions, and only 3% are not working. It should be recalled that in July, 49% were fully operational and the statistics did not have any non-operational companies at all. Among the businesses that work partially, half have limited the geography of their activities, one-third have closed some offices/outlets/branches, and a quarter has transferred their activities online.

The vast majority of companies, namely 79% continue to pay salaries to employees in full, and 18% do it with advance or additional payments. This is more than in July when 61% of companies paid full salaries. Another 15% of EBA businesses have reduced salaries, 8% were forced to send employees on unpaid leave. Another 7% are reducing staff, compared to 10% in the previous wave of the survey.

In 85% of companies, some employees currently have temporary protection status abroad. Thus, 61% of the companies we surveyed have up to 10% of their staff abroad, 20% of companies have 10-40%, and another 4% of CEOs report that they have more than 40% of their team abroad.

At the same time, 73% of businesses claim that they have enough financial resources for functioning and development, 61% estimate that they can hold out financially for a year or more (in July – 46%), another 26% – six months, and only 6% – a few months. Businesses have significantly increased financial reserves since March, although the number of companies that do not have them has slightly increased – up to 5% in October compared to 2% in July.

Almost half of the respondents, namely 47%, have lost property or assets directly as a result of hostilities. At the same time, 40% report losses of up to 1 million dollars, another 35% – losses in the range of 1-10 million dollars, 15% – losses of more than 10 million. Only 5% of businesses have not suffered any losses.

The total documented losses to date amount to at least EUR 437.5 million – according to information from EBA member companies.

Companies continue their support and even increase it for Ukrainian civilians and the army. Currently, 57% support employees who defend the country, 47% – help financially, 43% – help with products, 24% – with services, 17% – with medicines, 14% – with means of protection/defense.

It is extremely gratifying that today 83% are ready to join the post-war reconstruction of Ukraine. It should be reminded that in April there were 67% of such companies among the EBA member companies.