The World Bank GroupFinance, Competitiveness and Innovation Global PracticeEurope and Central AsiaUkraine: Firms through the WarNovember 28, 2023Public Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure AuthorizedPublic Disclosure Authorized1Ukraine: Firms through the WarbyThis version of the report is from November 28, 2023.2The impact of the 2022 Russian invasion on businesses in Ukraine has resulted in signif-icant damage to the country’s private sector. This report aims to address the lack of in-formation regarding the different effects and their channels. Eighteen percent of firmshave reported experiencing damage. Additionally, limited access to finance and keyexport markets, along with insufficient demand and increased uncertainty, have hin-dered the growth of Ukrainian enterprises. Despite these challenges, Ukrainian firmsthat have continued to operate after the Russian invasion have shown resilience andadaptability by proactively adjusting their business strategies. This includes efforts suchas seeking new customers, utilizing digital tools, and optimizing their supply chains.Based on the findings of the report, firms report needs for public support, especiallyfor financial assistance, regulatory improvements, and better market access.11This report is intended for a broad audience and can be read in a modular way: The executive readercan find the key findings in the initial note on Main Messages, policymakers will find a complete overviewof the report in the Executive Summary, and researchers will find a comprehensive coverage of the an-alytical work in the main body of the report.3Authors:Alexandra Avdeenko, Lucio Castro, Alberto Criscuolo, Marc Gillaizeau, Leonardo Iacovone,Mauricio Alejandro Pinzon Latorre, Franklin Okechukwu Maduko, Iryna Piontkivska, and Sunita Varada.AcknowledgementsThe team was led by Sunita Varada (Senior Private Sector Specialist, TaskTeam Leader), and Alberto Criscuolo (Senior Economist, Co-Task Team Leader).The report benefited from the generous feedback by Stefka Slavova (Lead Economist) and Karlis Smits(Lead CountryEconomist), andfromthepeer-reviewbyMarianaIoottyDePaivaDias(SeniorEconomist),Siddharth Sharma (Lead Economist), Trang Thu Tran (Senior Economist), and Daniel Saslavsky (SeniorEconomist).The team is grateful for the support and guidance provided by Arup Banerji (Regional Country Directorfor Eastern Europe), Lalita Moorty (Regional Director EAP EFI), Asad Alam (Regional Director ECA EFI),and Mario Guadamillas (Practice Manager).The World Bank team would like to thank the following partners for their support in the data collectionefforts.• Competitiveness for Jobs and Economic Transformation• European Business Association• Kyiv School of Economics Agrocenter• SpaceKnow• Vkursi big data platform• Umbrella Facility for TradeThe team would like to express gratitude to the following participants of the in-depth interviews andfocus grou...
