After 50 days of the war: 41% of AmCham Ukraine member companies are fully operational, 50% continue to work partially. 29% of member companies have relocated within Ukraine, and 19% are relocated outside Ukraine. 15% of businesses had to close offices in some regions, 2% had to shut down totally.
The American Chamber of Commerce in Ukraine conducted the latest Survey “Doing Business during War in Ukraine. Week 8” to show the current state of business and what changes and challenges organizations are going through.
103 CEOs and top managers of AmCham member companies took part in the Survey, conducted on April 11 – April 18, 2022. 71% of the respondents are CEOs.
The AmCham members were asked to identify what their companies were doing differently during the war to continue operations. 52% indicated they had to reshape business models, 40% – implemented cost-cutting efforts, 20% – launched new business directions or services. 17% – took projects from the parent offices in other countries, 13% – search for new clients outside Ukraine, 9% – search for financing in different countries. Unfortunately, 2% of members were forced to sell assets. Only 17% indicated they had no changes at all.
72% of AmCham Ukraine member companies continue to pay full salaries during the war and provide extra support. 16% pay full salary, 6% – partially reduced salary, 6% of businesses pay 50% of salary.
20% stated that their company’s plants/factories/facilities/storehouses/offices have minor damages, 3% have unrepairable damage, 3% are still under occupation, other 3% don’t have information yet. 57% of member companies had so far no damage during the war.
AmCham Ukraine member companies continue to provide support to the humanitarian drive. The most common ways of support are financial support (76%), volunteering drive within the companies’ employees (75%), providing in-kind goods (44%), providing services (41%), providing medicines (24%), providing protection means (17%).
AmCham member companies continue to support Ukraine’s territorial defense units and defense forces: 71% of members indicated that some of their companies’ employees joined the territorial defense units, 35% of companies provide goods and medicines, another 34% – provide financial support, 22% – provide services or protection means.
The business representatives were asked to indicate the biggest challenges for their organizations after 50 days of the war. Safety and security of employees (79%), logistics and transport (50%), and absence of clients or orders (36%) were identified by business representatives as the top-3 major challenges. Among others are export-import operations (26%), relocation (14%), and damaged assets and property (10%).
The most difficult question of the Survey was about the safety and security of employees. 76% of respondents said that all of their companies’ employees are safe. Sadly, there were painful numbers also, with 14% of companies’ having instances of employees injured and 7% – having instances of employees killed.
87% of AmCham member companies are ready to actively participate in Ukraine’s post-war economic rebuilding.
85% of business representatives support that companies following business ethics and ESG policies mustn’t work in the murderous pariah regime in Russia that continues to commit genocide and war crimes across Ukraine.
“After more than 50 days of war, 41% of AmCham Ukraine members are fully operational, and 50% of AmCham Ukraine members continue to work partially in Ukraine. To continue operations in Ukraine means to continue keeping Ukraine’s economy running. 87% of AmCham members are ready to actively participate in Ukraine’s post-war economic rebuilding. We have a lot of work ahead to make Ukraine flourish, and we see how lionhearted Ukrainians lead Ukraine to victory,” commented Andy Hunder, President of the American Chamber of Commerce in Ukraine.
Full Results of the Survey are available here.
About the American Chamber of Commerce in Ukraine:
The American Chamber of Commerce is Ukraine’s most influential international business association that has been serving members in Ukraine since 1992, delivering the shared voice of US, international and Ukrainian companies, who invested over $50 bln in Ukraine and remain committed to the country till today, during the war. For more information, please visit our website https://chamber.ua/ and #StandWithUkraine page with daily updates on how you can help Ukraine and Ukrainians during this significant time of need https://chamber.ua/news/standwithukraine/
OTP Leasing LLC, the largest player in the market, has already purchased agricultural equipment worth UAH 100 million since the beginning of the war and intends to increase purchases to UAH 1 billion this spring, Andriy Pavlushin, CEO of the leasing company, said.
“The vast majority of customers paid their monthly payments even in these terrible 50 days of war,” he wrote on his Facebook page.
Pavlushin added that the company also helped the Ukrainian army for UAH 58 million in cars, trucks and money, and continues to do so.
On April 6, the CEO announced that after a 41-day break, OTP-Leasing again began financing existing proven agricultural clients of medium and small businesses, “those clients who paid invoices for March on time.”
Pavlushin then indicated that he had bought tractors and seeders for UAH 70 million during the week.
OOO “OTP Leasing” is a part of the European financial group OTP Group. The company was founded in June 2008 as a subsidiary of OTP Bank. Currently, according to the CEO, the company has 2,000 customers and 170 employees.
The company’s revenue for 9 months of 2021 decreased by 44.2% – to UAH 99.71 million, while net profit almost doubled – by 95.7%, to UAH 463.3 million, and assets increased by 31.5% – up to UAH 15.11 billion, including long-term receivables – by 29.2%, up to UAH 14 billion.
The global satellite system for Internet access Starlink plans to open a representative office in Ukraine, Deputy Prime Minister, Minister of Digital Transformation Mykhailo Fedorov said on Tuesday.
“Now, Ukraine is almost impossible to imagine without modern Starlink technology. And this technology will become even more accessible to Ukrainians. After all, today we received another positive news: Starlink has begun work on opening a representative office in Ukraine,” he wrote on his Telegram channel.
Fedorov also said that, for his part, he instructed the relevant authorities to complete the necessary procedures for certification, measurements and the provision of frequencies as soon as possible.
According to Fedorov, today, more than 10,000 Starlink stations help the Armed Forces of Ukraine to stay in touch and carry out special operations, support the operation of critical energy and telecommunications facilities, healthcare facilities and even the sowing season, and also return de-occupied territories to life.
The EXMO cryptocurrency exchange has sold part of its digital assets business in Russia, Belarus and Kazakhstan, the exchange said on Tuesday.
According to the exchange, EXMO announced the transfer of part of the business to Russian owners and the termination of work with the markets of Russia, Belarus and Kazakhstan, after Russia invaded the territory of Ukraine and started a full-scale war.
The company said that this was done in order to continue to fulfill obligations to customers and stakeholders, as well as to ensure a high level of protection and security.
“It’s been a tough decision for us, since we have spent over eight years building a strong community of crypto enthusiasts throughout the world, adhering to the highest compliance practices and delivering outstanding services to all our clients wherever they lived. However, following Russia’s invasion of Ukraine, EXMO.com as a global group wishes to avoid risking our global expansion plans by operating in such high risk markets,” CEO of the crypto exchange Serhiy Zhdanov said, commenting on the situation.
Kazakhstan clients were also included as a part of the deal, since a new team is based in Kazakhstan. The new owner of the Russian, Belarusian and Kazakh digital assets exchange business is the owner of a Russian based software development company, which was one of the vendors to provide engineering services to EXMO during the last three years.
EXMO.com user agreement was recently amended to state that Russian, Belarusian and Kazakh residents are no longer being onboarded. Russian Rubles pairs were disabled since April 15, 2022 on EXMO.com.
Earlier, the EXMO cryptocurrency exchange created the Save Ukraine Relief Fund to raise funds to help Ukrainian citizens affected by the war.
EXMO’s own contribution amounted to $1 million and has so far collected $594,000 through crypto contributions from exchange users.
EXMO is an international cryptocurrency exchange founded in 2014. The platform provides cryptocurrency trading and storage opportunities for more than 2 million traders from all over the world.
BUSINESS, CRYPTOCURRENCY EXCHANGE, DIGITAL ASSETS, EXMO, RUSSIA
During his visit to Lviv, Polish Prime Minister Mateusz Morawiecki opened a container town for 300-350 internally displaced persons (IDPs) in Ukraine and announced the construction of similar towns around Kyiv.
“We are doing everything to protect Ukrainian children and women. There will be more such towns, 300-350 people find shelter here. There will be 5,000 people in Lviv. Our envoys are going to cities around Kyiv and will construct the same towns,” the Office of the Polish Prime Minister said, citing Morawiecki on Twitter page on Tuesday.
In addition, the prime minister urged the European Commission to launch a solidarity fund for Ukraine. “I appeal to the European Commission to make the solidarity fund for Ukraine work and to have new money. There is nothing to wait. We cannot allow more crimes to be committed. Today, the sanctions should be as tough as possible,” Morawiecki said.
He said that wherever he met with the leaders, he points to the need for the most severe sanctions. “This is the lowest price we can pay to regain our freedom. I call on European leaders to abandon calculators and turn to their conscience,” the Polish prime minister said.
According to Morawiecki, already 10 million people in Ukraine have been forced to leave their homes, of which 2.5 million people live in Poland, but 6 million are inside Ukraine.
The French reinsurer SCOR tentatively estimates the volume of compensation as a result of Russia’s military attack on Ukraine at “a high double-digit figure in millions of euros”, while warning that the company could end the first quarter of 2022 with a loss.
As reported on the website of the reinsurer, SCOR became the first of the global reinsurers to publish information about how much the war in Ukraine could cost their business.
It is also noted that the total losses of the industry as a result of this war will be equivalent to a catastrophic event of a medium scale (from EUR15 billion to EUR30 billion). But given that hostilities affect insurance payouts, and given the considerable uncertainty as hostilities continue, it is now very difficult to give an accurate estimate, SCOR said.
By announcing early first quarter results, SCOR definitely wants to give shareholders and the market a picture of what to expect. SCOR’s strategy is to reserve funds “as large as possible as early as possible”.
The company is closely following the course of events in Ukraine, which makes it possible to adequately assess the potential impact of the aggressor’s military actions and international sanctions against Russia on global reinsurance.
SCOR emphasizes that its subsidiary in Russia has suspended the signing of new reinsurance contracts.
The company emphasizes that payments are expected under political risk, credit risk and aviation insurance reinsurance contracts.
The reinsurer noted that these payments will be attached to other payments in the first quarter of 2022, in particular for damage due to natural disasters (including floods in Australia, European snowstorms, drought in Brazil) and the continuation of the Covid-19 pandemic in the United States.
“Such situations will negatively affect the combined ratio for P&C insurance (property insurance), as well as the technical result of life and medical insurance. This is expected to lead to losses for the quarter,” the company notes.
SCOR also stated that the company is well capitalized and has a strong solvency ratio.
