‘In Ukraine, two-thirds of entrepreneurs have lost income due to the war’ – World Bank report

In Ukraine, 20% of entrepreneurs have faced destruction, while 70% have experienced income loss.

The information reported according to a report from the World Bank.

The data for the report were gathered through surveys of entrepreneurs and analysis of open sources.

The document states that 70% of those surveyed encountered a decline in income, with the average enterprise income halving compared to 2021.

The eastern regions suffered the most, experiencing a threefold drop in income. The southern regions of Ukraine were affected to a lesser extent, with an average decline of around 60%. Meanwhile, in western regions, this figure is approximately 40%.

Additionally, around 20% of enterprises have suffered damages due to the conflict. The eastern part of the country bore the brunt, with about 47% of enterprises affected. In the southern regions, this percentage is lower, standing at 29%.

The report also identifies the metallurgical industry as the sector most affected by the war, losing over 60% of its capitalization.

The World Bank highlights other challenges faced by Ukrainian businesses besides direct destruction. These include:

• Problems with energy supply following Russian shelling.
• Disruption of logistics due to hostilities and blockades.
• Decreased demand.
• Shortage of workers due to mobilization and emigration.
• Financial deficits.