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Tax relief, insurance, infrastructure – how to support business in the Kharkiv region

07/ 11/ 2025
  Business conditions in the Kharkiv region received the lowest rating among all regional offices of the European Business Association, according to the latest survey. The overall assessment of the regional business climate in 2025stands at 1.92 points out of 5, compared to 1.45 points last year.This year, 79% of respondents described business conditions as difficult, including 29% who said they were very difficult. Meanwhile, 21% rated the business environment as satisfactory, whereas last year no companies expressed such an opinion. It is worth noting that only 21% of surveyed businesses are currently operating at full capacity, while 79% are functioning with certain restrictions. For comparison, in 2024, 91% of companies operated with limitations, and 9% did not operate at all. The main factors negatively affecting business activity in the region include labour shortages (particularly due to mobilisation and migration abroad), a decline in consumer purchasing power, and limited access to financing programmes and other business support mechanisms. Among the positive influences, companies mentioned exemptions from certain taxes and payments as well as the openness of regional authorities. According to entrepreneurs, business conditions in the region could be improved through infrastructure restoration and preservation, a reduction in the military levy, tax and tariff incentives, and the introduction of war risk insurance. Currently, 79% of surveyed companies employ staff serving in the Armed Forces of Ukraine. Specifically, in 22% of companies they make up to 10% of all conscripted employees, in 43% – 10–20%, and in 14% – 20–30%. Moreover, 43% of companies employ veterans. Only 14% of respondents have attracted additional funding for business development. Of these, half used bank loans, while the other half relied on the “Affordable Loans 5-7-9%” programme. The main purposes for raising funds were supporting business continuity and investing in business expansion. War-related losses continue to mount: since the start of the full-scale invasion, 57% of entrepreneurs in the Kharkiv office have suffered losses of up to USD 1 million, 21% between USD 1–10 million, and 14% exceeding USD 10 million. In assessing cooperation with local authorities, companies gave positive feedback on the work of the Kharkiv City Council and the regional tax service. At the same time, entrepreneurs noted the need to improve interaction with Territorial Recruitment and Social Support Centres and the judicial system. Looking ahead to 2026, companies plan to digitalise business processes, implement AI tools, expand operations, and launch new investments or projects. However, 23% of respondents are considering relocating their business. According to the business community, the post-war recovery of the Kharkiv region should focus on rebuilding infrastructure and logistics, encouraging the return of businesses and people, supporting entrepreneurship, and researching and implementing new technologies. Additionally, businesses propose promoting a special economic status for the region. For reference: The survey was conducted among the regional offices of the European Business Association, including member companies of the Kharkiv Office, between 12 and 26 September 2025. The full news release is available via the link.

Business conditions in the Kharkiv region received the lowest rating among all regional offices of the European Business Association, according to the latest survey. The overall assessment of the regional business climate in 2025stands at 1.92 points out of 5, compared to 1.45 points last year.This year, 79% of respondents described business conditions as difficult, including 29% who said they were very difficult. Meanwhile, 21% rated the business environment as satisfactory, whereas last year no companies expressed such an opinion.

It is worth noting that only 21% of surveyed businesses are currently operating at full capacity, while 79% are functioning with certain restrictions. For comparison, in 2024, 91% of companies operated with limitations, and 9% did not operate at all.

The main factors negatively affecting business activity in the region include labour shortages (particularly due to mobilisation and migration abroad), a decline in consumer purchasing power, and limited access to financing programmes and other business support mechanisms. Among the positive influences, companies mentioned exemptions from certain taxes and payments as well as the openness of regional authorities.

According to entrepreneurs, business conditions in the region could be improved through infrastructure restoration and preservation, a reduction in the military levy, tax and tariff incentives, and the introduction of war risk insurance.

Currently, 79% of surveyed companies employ staff serving in the Armed Forces of Ukraine. Specifically, in 22% of companies they make up to 10% of all conscripted employees, in 43% – 10–20%, and in 14% – 20–30%. Moreover, 43% of companies employ veterans.

Only 14% of respondents have attracted additional funding for business development. Of these, half used bank loans, while the other half relied on the “Affordable Loans 5-7-9%” programme. The main purposes for raising funds were supporting business continuity and investing in business expansion.

War-related losses continue to mount: since the start of the full-scale invasion, 57% of entrepreneurs in the Kharkiv office have suffered losses of up to USD 1 million, 21% between USD 1–10 million, and 14% exceeding USD 10 million.

In assessing cooperation with local authorities, companies gave positive feedback on the work of the Kharkiv City Council and the regional tax service. At the same time, entrepreneurs noted the need to improve interaction with Territorial Recruitment and Social Support Centres and the judicial system.

Looking ahead to 2026, companies plan to digitalise business processes, implement AI tools, expand operations, and launch new investments or projects. However, 23% of respondents are considering relocating their business.

According to the business community, the post-war recovery of the Kharkiv region should focus on rebuilding infrastructure and logistics, encouraging the return of businesses and people, supporting entrepreneurship, and researching and implementing new technologies. Additionally, businesses propose promoting a special economic status for the region.

For reference:

The survey was conducted among the regional offices of the European Business Association, including member companies of the Kharkiv Office, between 12 and 26 September 2025. The full news release is available via the link.

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