Business losses after a month of war

30/ 03/ 2022

Thus, 34% of the EBA member companies lost more than $ 1 million in the first month of the war. Another 13% have losses within the range of 500 thousand to 1 million dollars, 28% – from 100 to 500 thousand dollars, and 14% – up to 100 thousand dollars. Only 1% of the surveyed companies did not suffer any losses for the month of the war. Other companies are still calculating the losses. To stay afloat, 68% of companies cut costs, 44% seek debt repayment from customers or partners, 35% relocate businesses, and 13% launch new business lines. Every fourth company, namely 25%, reorients their activities to humanitarian needs, and 13% – to the needs of the army. To continue their business, 23% are looking for clients in foreign markets, and 15% are looking for funding. Meanwhile, 9% of businesses are forced to reduce staff, and 8% report that they cannot keep their business afloat. According to the survey, businesses consider the following 7 problems as the gravest now in order of priority: Difficulties with logistics Problems with the supply of goods Frozen contracts with foreign and local clients The low purchasing power of the population Damaged facilities, assets, infrastructure Lack of financial resources and investments Lack of raw materials Only 1% of the companies offices in Ukraine, participating in the survey, are currently subordinated to the russian federation. Meanwhile, 7% report that their subordination to russia has already been abolished. The other 92% were either not subordinated to Russia or are representatives of local business. Also, 22% of the surveyed companies report that they have never had business with Russia. Earlier, the European Business Association called for companies to stop doing business in or with Russia. The EBA once again emphasizes the importance of such a move and hopes that more and more companies will sever their relations with russia. For reference: The survey was conducted from March 25 to 29, 2022. Altogether, 95 CEOs of the EBA member companies took part in the survey.

To stay afloat, 68% of companies cut costs, 44% seek debt repayment from customers or partners, 35% relocate businesses, and 13% launch new business lines. Every fourth company, namely 25%, reorients their activities to humanitarian needs, and 13% – to the needs of the army. To continue their business, 23% are looking for clients in foreign markets, and 15% are looking for funding. Meanwhile, 9% of businesses are forced to reduce staff, and 8% report that they cannot keep their business afloat.

According to the survey, businesses consider the following 7 problems as the gravest now in order of priority:

Difficulties with logistics
Problems with the supply of goods
Frozen contracts with foreign and local clients
The low purchasing power of the population
Damaged facilities, assets, infrastructure
Lack of financial resources and investments
Lack of raw materials

Only 1% of the companies’ offices in Ukraine, participating in the survey, are currently subordinated to the russian federation. Meanwhile, 7% report that their subordination to russia has already been abolished. The other 92% were either not subordinated to Russia or are representatives of local business. Also, 22% of the surveyed companies report that they have never had business with Russia.

Earlier, the European Business Association called for companies to stop doing business in or with Russia. The EBA once again emphasizes the importance of such a move and hopes that more and more companies will sever their relations with russia.

For reference:

The survey was conducted from March 25 to 29, 2022. Altogether, 95 CEOs of the EBA member companies took part in the survey.