How Ukrainian business migrates during the great war
Almost 19 thousand companies have relocated since the beginning of 2022, according to the Unified State Register. Kyiv and Zakarpattia regions were the most popular destinations for business. Among all companies, wholesalers relocate most often.
Of the total number of companies that have changed their location since the start of the full-scale war, just over 1,000 have moved from the city to the region. Half of them – more than 600 companies – moved from Kyiv, and another 60, or 5.1%, from Odesa region.
Kyiv region is the most popular choice for relocation – 546 relocations. This is almost every second business relocation since the start of the full-scale war. The most popular route was from Kyiv to Kyiv region: 359 relocations. In fact, 30% of all cases when businesses relocate to the region are on this route.
Other routes were less popular. For example, the routes from Lviv to Kyiv region and from Kyiv to Zakarpattia are in second and third place, with 2.7% and 2.6% respectively (30-32 companies).
The leaders in relocations were companies engaged in wholesale trade – 344 relocations (29.3%) and the transportation industry – 92 relocations (7.8%)
Ukroliya LLC with a turnover of over UAH 4 billion became the largest company to change its location. The company moved from Kyiv to Poltava region. Kyiv-Atlantic Ukraine LLC, with a turnover of over UAH 2 billion, also left Kyiv region, but to Cherkasy region.
Kercher LLC with a turnover of more than UAH 1 billion closes the list of top business migrants, as the company changed its place of registration to Kyiv region.
“We started preparing for the move 7 years ago – we bought land and started construction in the Kyiv region in 2020, which was interrupted by the Russian attack and partial occupation of the region. Within 4 months after the liberation of Kyiv region, the company resumed construction, so at the end of 2023, our team moved into a new space. In general, the location of the company outside the city, in the regions, is part of the philosophy of the Kercher brand throughout Europe,” comments Nadiya Kreposna, marketing manager at Kercher.
German Chancellor Olaf Scholz spoke in favor of strengthening control over illegal migration and promised possible additional measures, the German edition of Welt reported on Saturday, September 23.
Many people are coming to Europe and Germany and their numbers have “increased dramatically,” Scholz said at a Social Democratic Party rally in Nuremberg, Welt reported.
In connection with the situation at the borders, Scholz called for clarification of possible irregularities in the issuance of visas in neighboring Poland. “I don’t want Poland to just wave us off and then discuss our asylum policy,” the FRG chancellor emphasized.
According to him, whoever comes to Poland should register there and go through the asylum procedure, “not get visas that were somehow handed out for money.” He suggested discussing the issue with the Polish government.
At the same time, Scholz added, depending on the current situation, “additional measures may have to be taken at the borders.”
Poland has become the main destination country for labour migrants from Ukraine, according to the publication “Migration in Ukraine: Figures and Facts” prepared by the International Organization for Migration, the United Nations Agency for Migration in Ukraine (IOM).
“Emigration to the Czech Republic, Slovakia, and Hungary has increased in a certain way. As before, Poland is the main destination for Ukrainians,” Doctor of Public Administration, expert on migration issues Olena Malynovska said at the presentation of the publication in Kyiv on Friday.
In particular, in 2020, some 1.329 million applications of Polish employers about their intention to employ a citizen of Ukraine were registered. It is estimated that the labor participation of Ukrainians in the Polish economy has provided 13% of its growth in recent years.
“There has been a noticeable increase in the number of applications by Ukrainians to acquire a long-term or permanent permit to stay abroad, in particular in Poland. The pandemic, which limited the possibility for circular migration, that is, periodic trips abroad, has led to an intensification of the tendency for a part of temporary labor migration to become permanent or for a long migration,” Malynovska said.
According to the publication, in 2020, private remittances to Ukraine amounted to $11.888 billion, while foreign direct investment amounted to $868 billion less.
In addition, in 2020, Ukraine issued 12,000 immigration permits and 293,600 permanent residence permits.
“The number of foreign students has been growing, and this is a positive phenomenon, but I want to draw your attention to the fact that last year there was a third less invitations for applicants, that is, the replenishment of the contingent of foreign students last year took place at a lower level. In the coming years, we will have a reduction in the number of foreign students,” Malynovska said.
According to the data indicated in the publication, the number of immigrants on the territory of Ukraine is decreasing, while the number of emigrants is growing. In particular, 4.997 million people of immigrants lived in Ukraine in 2020 (some 6.893 million people in 1990), while 6.139 million people of emigrants from Ukraine lived abroad (some 5.546 million people in 1990).
According to the Ministry of Social Policy of Ukraine, as of July 2021, the total number of internally displaced persons (IDPs) in Ukraine reached 1.474 million people.
The publication informs that in 2020 the population of Ukraine was 41.6 million, while in 2018 the population was 42.4 million. It is noted that in 2020, some 616,800 people died in Ukraine, and 293,400 people were born.
It is indicated that Ukraine’s GDP is still below the 2013 level. In particular, in 2020, Ukraine’s GDP was $142.3 billion, while in 2013 it was $183.3 billion. At the end of 2020, the unemployment rate in Ukraine was 10.1%, which was the highest since 2014. It is noted that the poverty level in Ukraine is 23.3%, below the poverty line are 8.8 million citizens. Previously the Experts Club made an analytical program dedicated to the Ukrainian demography in 1990-2021 period. For more details on the analysis of the demographic situation in Ukraine, see the video posted on the Experts Club channel: https://www.youtube.com/watch?v=Gc04wUpexnE
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