Business news from Ukraine

Business news from Ukraine

Ukrainian defense sector to grow 6-fold in 2024

Ukraine’s defense sector grew three times last year, and the industry is expected to grow 6-fold in 2024, Deputy Minister for Strategic Industries Hanna Hvozdyar said at the European Business Association (EBA) conference Global Outlook: A Winning Vision on Wednesday.

“The enemy is, of course, superior to us in terms of numbers and funds they attract. And the needs of the army are so great that it is very difficult for us, even together with our partners, to meet them in full. However, last year alone, we tripled our defense spending. This year we expect a 6-fold increase,” Hvozdyar said.

According to her, the ministry is creating opportunities for civilian companies to engage in military-tech work.

“We are talking about ammunition, ammunition cases. They can be produced by civilian companies that have the appropriate equipment, and we are also moving in this direction,” Hvozdyar said.

The Deputy Minister noted that another niche is in the market of components. According to her, many drone and UAV manufacturers still buy components abroad, while one of their priorities is to equip them with domestically produced parts.

“Our drones should depend on and consist of Ukrainian components as much as possible,” Hvozdyar said.

“The money is all in the defense sector. So, sooner or later, we will still come to the conclusion that it is more profitable for the economy as a whole. It is very important for us to keep our budget within the country,” she explained.

Hvozdyar also noted that the Ministry of Strategic Industries of Ukraine (MinStrategProm) is working on creating a communication platform that could serve as a library of proven components of national production.

Israel opens its market for Ukrainian feed flour and feed fats

Israel has opened its market for Ukrainian feed flour and feed fats, the press service of the State Service of Ukraine for Food Safety and Consumer Protection reported.

According to the report, the Ukrainian and Israeli competent authorities have agreed on a veterinary certificate for poultry/feather/fish meal and a veterinary certificate for oils and fats for animal feeding.

“The Ministry of Foreign Affairs together with the State Service of Ukraine on Food Safety and Consumer Protection continue to open doors for Ukrainian products in the world. Only last week and this week we opened new markets in three countries: China, Qatar and Israel. This is part of the Ministry of Foreign Affairs’ systemic strategy to help Ukrainian businesses in times of war. Within the framework of our Nazovni platform, from January 2023 to February 2024, we processed 84 applications from exporters to enter the Israeli market, so it is interesting for business,” said Dmytro Kuleba, Minister of Foreign Affairs of Ukraine.

According to the head of the State Service of Ukraine for Food Safety and Consumer Protection, Serhiy Tkachuk, the agency is currently studying 220 areas for opening markets in other countries for such commodities as meat, dairy products, fish products, bee products, and others.

The harmonized forms of veterinary certificates for feed flour and feed fats are published on the website of the State Service of Ukraine on Food Safety and Consumer Protection in the section “International Cooperation”, heading “Certificates for Export from Ukraine”.

The agency reminded that the first step for exporting Ukrainian products of animal origin is a request from the market operator to the territorial body of the State Service of Ukraine on Food Safety and Consumer Protection at the place of location.

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Ukrainians married less and divorced more often in 2023

Where do people get married and divorced the most in Ukraine?

More than 186 thousand marriages were registered in Ukraine in 2023, according to the Ministry of Justice of Ukraine. The number of divorces and prenuptial agreements has increased, but it is still less than before the start of the Great War.

186,051 marriages were registered through the registry office in Ukraine in 2023.


In the first year of the full-scale invasion, Ukrainians were actively marrying – 4% more than in 2021, when 214,013 couples got married. However, in 2023, the number of marriages dropped sharply – by as much as 16% over the year.

Overall, the number of new families has decreased by 1.6 times over the past 10 years.

The leader in the number of new marriages in 2023 was Kyiv – 21,802. This is 14% less than in 2021. Dnipropetrovs’k region is in second place with 18,816 marriages. Odesa region rounds out the top three with 13,740 new families.

The only region where the number of new families increased in the second year of the full-scale war was Kharkiv region: 10,977 marriages or +11%.

Compared to the period before the start of the great war, the number of new families increased in the central regions last year: Kirovohrad (+28%), Zhytomyr (+23%), and Cherkasy (+22%).

At the same time, in the west of the country, on average, 20% fewer couples got married: Ternopil (-24%), Zakarpattia (-23%), and Lviv (-20%). An anti-record was set in Chernivtsi region, where the number of new families decreased by as much as a third.


After a decline in the first year of the full-scale war, the number of divorces through registry offices increased again by 35%. 24,108 divorces were recorded last year. However, this is still 18.5% less than in 2021.

Kyiv is the leader not only in the number of marriages but also in divorces – 3,793 last year. The capital accounts for almost 16% of the total number of divorces through registry offices.


The number of divorces in 2023 increased significantly compared to 2021 in Ivano-Frankivsk region – +20%. In Odesa region, on the contrary, a quarter fewer married couples broke up last year than in 2021.


However, it should be understood that these statistics are not exhaustive. Only couples who do not have minor children or property claims against each other can dissolve their marriage at the registry office. In other cases, divorce takes place in court and can last for years.

The number of marriage agreements last year increased 1.6 times compared to the first year of the Great War. 2,586 agreements were concluded last year, a third less than in 2021.


Currently, there is 1 marriage contract for 72 marriages.

https://opendatabot.ua/analytics/marriages-divorces-2023

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Business Activity Recovery Index in Ukraine declined to 43% in January

After two months of stable performance, the index of business activity recovery (IER) in January decreased by 7 p.p. to 43%, according to the 21st NRES (New Monthly Enterprises Survey) conducted by the Institute for Economic Research and Policy Consulting (IER).

“In addition to the growing uncertainty related to export prospects, the surveyed enterprises report a direct reduction in exports. Thus, in January, 34% of respondents had to reduce exports (in December, the number was 20%). The share of enterprises reporting export growth decreased from 31% in December to 19% in January,” the IER reports.

According to the published information, the share of enterprises that reduced production volumes increased from 16.8% in December to 23.2% in January, and the share of enterprises that increased production volumes decreased from 34.4% to 23.2%.

It is noted that employment rates have also slightly decreased: 2.7% of respondents plan to increase it (5.1% in December), 11.5% intend to reduce the number of employees (6.7% in December), and 85.8% do not expect changes in employment (88.3% a month earlier).

The business itself is experiencing problems with finding qualified employees – 32.4% of companies have difficulty finding such employees (29.1% in December). Although, according to Oksana Kuziakiv, Executive Director of the IER, the decline in employment may be a seasonal trend.

Among the obstacles to growth, the first place in the list of obstacles is shared by “working dangerously” and rising prices for raw materials: 46% of respondents indicated them.

Lack of labor moved from second to third place in the list of barriers with a decrease from 46% to 41%, and power outages moved from fifth to seventh place (from 30% to 26%).

Corruption and pressure from law enforcement agencies are still not significant problems: in January, they were reported as obstacles by 7% of respondents.

In addition, more than a fifth of the surveyed Ukrainian enterprises named the lifting of the blockade of the western borders as an expected change needed to improve the business climate in the country.

As for the results of 2023, 56% of the surveyed enterprises said that the previous year met their expectations, and for 8% it even exceeded their expectations. At the same time, the IER clarifies that there is a connection between the compliance of 2023 with expectations and the size of the enterprise. Thus, 77% of large enterprises called 2023 expected or exceeding their expectations. At the same time, only 54% of microbusinesses said the same.

“The result we got is quite optimistic. I did not expect to see such figures given the turbulence and events that Ukrainian business experienced in 2023. This means that most companies are realistic about planning,” Kuziakiv commented on the results.

The survey, which was conducted from January 16 to January 31, 2024, involved 552 enterprises from 21 regions of Ukraine operating in the industrial, retail and agribusiness sectors.

US Senate approves $60 bln aid package for Ukraine for 2024

The U.S. Senate has approved a $60 billion aid package for Ukraine for 2024, Prime Minister Denys Shmyny said.

“The bulk of the amount ($50 billion) is defense support. There will be even more weapons, equipment and ammunition for our defenders. The rest of the aid will be directed to direct budget support and other programs that will help Ukraine remain economically sustainable,” Shmyhal wrote on his Telegram channel.

The Prime Minister thanked the Senate for this important decision and expressed hope that the House of Representatives would support this aid.

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Estimated number of population in regions of Ukraine based on number of active mobile sim cards (mln)

Estimated number of population in regions of Ukraine based on number of active mobile sim cards (mln)

Source: Open4Business.com.ua and experts.news