As Ukrainian soldiers fight daily on the frontlines, Ukrainian civilians are fighting on their own front lines to protect their homes, schools, and businesses across the country. Continuing to live and work is a victory in itself.
How has the war affected Ukrainians’ businesses and livelihoods? How has russia’s invasion affected the Ukrainian economy? How have Ukrainian business leaders adapted to keep supply chains running and their enterprises strong? How have Ukrainian private enterprises supported the fight for freedom?
One year after russia’s full-scale invasion, DATTALION has set out to answer these questions and compile an overarching analysis of Ukraine’s economy in 2022. Carried out in collaboration with advisory firm Capital Times, this project features exclusive economic analysis as well as in-depth interviews with Ukrainian business leaders.
A Look at the Impact on Ukrainian Business Sectors
The russian invasion of Ukraine has left no sector untouched. With each ruthless attack, russian forces have destabilized Ukrainian industries and caused billions in damage. Ukraine’s businesses and leaders are persevering and resisting russian aggression with each passing day, but the consequences of russia’s brutality must be paid by the aggressor alone.
To spread the truth of russia’s destruction, DATTALION and Capital Times investigated the effects of russia’s full-scale invasion on the Ukrainian metallurgy, dairy, construction, and aviation industries, as well as damages to railways and the Ukrainian wheat crop in 2022.
Each of these industries has grappled with massive financial losses, severe drops in output, and stunted growth due to russian attacks on infrastructure and occupation of Ukrainian territory.
As the breadbasket of the world, Ukraine’s agricultural losses have major implications for hunger crises around the world.
Ukraine’s agriculture production has dramatically decreased as critical land and machinery have been mined, shelled, and destroyed by russian aggression. Ukrainian agribusinesses have suffered 40.8 million USD in damages and Ukraine’s wheat harvest was 38% less in 2022 than in 2021.
Simultaneously, Ukrainian seaports and airports have been damaged and shut down in the midst of the russian invasion, complicating the export of Ukraine’s remaining agricultural output.
In this and many other ways, russia’s war in Ukraine has global consequences, as agricultural losses lead to increased food insecurity worldwide.
Since February 24th, 2022, Ukraine’s energy production has dropped by 33%-75%, with variation across power generation methods.
Overall, 43% of Ukraine’s energy infrastructure has been damaged by shelling as russian forces use attacks on critical energy infrastructure to target civilians.
The Ukrainian oil industry is also suffering, with 419 million USD lost and 27 destroyed petroleum storage sites.
Meanwhile, Ukrainian retail infrastructure is being wiped out, with storefronts destroyed and billions lost in profits.
Despite ongoing aggression, Ukrainian businesses are facing destruction and loss with steadfast determination to support their communities, stand together, and rebuild.
As the war continues into another year, Ukrainian businesses are looking toward the future and continuing to persevere.