Business news from Ukraine

Business news from Ukraine

Queues of cars and buses have formed at Ukraine’s borders with Poland, Hungary, and Slovakia, according to State Border Service

Passenger traffic across the Ukrainian border in the third week of December, from December 13 to 19, jumped by 26.3% to 562,000 as Christmas approached, and this weekend the increase reached 50%, causing queues at the border with Poland, Hungary, and Slovakia, according to data from the State Border Service.

According to them, the number of border crossings for departure increased to 279,000 from 226,000 a week earlier, while the increase for entry was even more significant – to 283,000 from 219,000.
This Saturday, December 20, the number of border crossings for exit and entry was also similar – 62,000 and 63,000, compared to 41,000 and 39,000, respectively, on the previous Saturday.

The number of vehicles that passed through checkpoints this week also jumped to 140,000 from 123,000 a week earlier, while the flow of vehicles carrying humanitarian cargo remained at around 520.
According to the State Border Service, as of 12:00 on Sunday, there were no queues at the border with Romania and Poland, while at the borders with three other countries, there were queues at all checkpoints.

At the border with Poland, most passenger cars and buses were waiting to cross at the Krakovets checkpoint – 150 and 20, respectively. The queue at the Ustyluh checkpoint consisted of 125 cars and 15 buses, at the Rava-Ruska checkpoint – 110 cars, Smilnytsia checkpoint – 85 cars and 6 buses, Shehyni checkpoint – 80 cars and 19 buses, Hrushev checkpoint – 80 cars and 9 buses, Nizhankovychi checkpoint – 80 cars and 1 bus, Ugrinov checkpoint – 75 cars and 9 buses, Yagodin checkpoint – 30 buses (passage of passenger cars is temporarily suspended).

Forty passenger cars and two buses were waiting to cross the border with Slovakia at the Uzhgorod checkpoint, and 30 cars were waiting at the Maly Berezny checkpoint.
At the border with Hungary, the longest queues were at the Luzhanka and Dzvinovo checkpoints, with 50 and 45 cars, respectively. There were 30 cars at the Kosino and Vilok checkpoints and 5 at the Tisa checkpoint.

The total number of border crossings this week is slightly lower than last year. At that time, 294,000 people left Ukraine and 290,000 entered the country over the same 7 days, although the flow of cars was lower – 134,000.
Last year, a 28.1% jump in passenger traffic was recorded this week, and the following week it increased by another 12.5%.

As reported, from May 10, 2022, the outflow of refugees from Ukraine, which began with the start of the war, was replaced by an influx that continued until September 23, 2022, and amounted to 409,000 people. However, since the end of September, possibly influenced by news of mobilization in Russia and “pseudo-referendums” in the occupied territories, followed by massive shelling of energy infrastructure, the number of people leaving has exceeded the number of people entering. In total, from the end of September 2022 to the first anniversary of the full-scale war, it reached 223,000 people.

During the second year of full-scale war, the number of border crossings to leave Ukraine, according to the State Border Service, exceeded the number of crossings to enter by 25,000, during the third year by 187,000, and since the beginning of the fourth year by 203,000.

As Sergei Sobolev, then Deputy Minister of Economy, noted in early March 2023, the return of every 100,000 Ukrainians home results in a 0.5% increase in GDP.
In its July inflation report, the National Bank worsened its migration forecast: while in April it expected a net inflow of 0.2 million people to Ukraine in 2026, it now forecasts a net outflow of 0.2 million, which corresponds to the estimate of the net outflow this year. “Net return will only begin in 2027 (about 0.1 million people, compared to 0.5 million in the previous forecast),” the NBU added and confirmed this forecast at the end of October. In absolute terms, the National Bank estimates the number of migrants currently remaining abroad at about 5.8 million.

According to updated UNHCR data, the number of Ukrainian refugees in Europe as of December 11, 2025, was estimated at 5.311 million (5.331 million as of November 14), and 5.860 million (5.850 million) worldwide.
In Ukraine itself, according to the latest UN data for July this year, there are 3.340 million internally displaced persons (IDPs), compared to 3.757 million in April.

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US initiates trilateral meeting with Ukraine and Russia at level of security advisors

The US has proposed a meeting between the national security advisors (NSA) of Ukraine, the US, and Russia, Ukrainian President Volodymyr Zelenskyy said, expressing cautious optimism about the prospects for such a meeting.

“As for Umerov (Secretary of the National Security and Defense Council Rustem Umerov, who is in the US, where he held talks with American and European partners on ending the war), he called me and said that America is now proposing a trilateral meeting of the NSA – America, Ukraine, Russia,” Zelensky said in comments to reporters on Saturday.

The president noted that he is not sure that this meeting will bring anything new, but pointed out that a similar meeting in Turkey resulted in the return of captured military personnel and civilians, so it is worth holding such meetings.

“I believe that this is not everything we wanted, but it is very important. I am very glad that we had exchanges. Our people, our military personnel, especially prisoners, have returned home. And civilians too. And that is why such steps must be taken. And if there can now be a meeting that will unblock the exchanges, or if the result of the trilateral NSA meeting could be an agreement on a trilateral meeting of leaders, and I have said this many times, there are complex issues that must be resolved by the leaders of the states. Therefore, if the results are exchanges or some other agreements, I cannot be against it, we will then support the proposal of the United States of America. Let’s see how it goes,” Zelensky said.

https://interfax.com.ua/

 

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American Chamber of Commerce warns of threats to safety of Ukrainian shipping

https://chamber.ua/ua/news/amerykanska-torhovelna-palata-zaklykaie-mizhnarodnykh-partneriv-posylyty-povitrianyy-ta-morskyy-zakhyst-nad-ukrainskoiu-portovoiu-infrastrukturoiu-chornoho-moria/

The business community, united by the American Chamber of Commerce in Ukraine (the Chamber), calls on international partners to immediately increase air and sea defense over Ukraine, particularly the Odesa region and critical Black Sea port infrastructure.

Russia continues to destroy and humiliate American businesses in Ukraine. Russia’s recent missile and drone attacks targeting Ukraine and the Odesa region

  • resulted in injuries and deaths of port workers and ship crews
  • damaged ports, energy facilities, grain storage facilities and commercial vessels
  • reduced the operation of terminals by up to 50%, some of them have been shut down, most of them are running on generators
  • caused large-scale power outages and additional costs for the use of generators
  • damaged power plants and power grids that require urgent repairs
  • limited railroad connections to ports
  • caused downtime of commercial vessels and demurrage charges

The current situation poses a direct risk of disrupting global food and commodity supply chains, with far-reaching consequences for international markets and food security, including higher food prices and worsening hunger in vulnerable countries.

While it is difficult to estimate the real-time losses of grain and oilseed exporters, they are currently estimated at hundreds of millions of dollars per month. Without substantial strengthening of air and maritime defense systems, both Ukrainian and international businesses will face critical operational challenges, including the inability to charter vessels and obtain insurance coverage for vessels, crews, and cargo.

The Chamber calls on international partners to urgently strengthen Ukraine’s air and maritime defense in order to save civilian lives, ensure the security of critical infrastructure, ports, and the continuity of global trade and food supply chains.

https://interfax.com.ua/news/press-release/1129438.html

 

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Ukraine’s GDP growth is primarily driven by construction

Construction, with a rate of 31.5%, made the largest contribution to Ukraine’s GDP growth in the third quarter of 2025, which, according to preliminary data, amounted to 2.1%, the State Statistics Service reported on Thursday.

According to its estimates of GDP using the production method, growth in public administration was 15.1%, in the supply of electricity, gas, steam, and air conditioning – 6.7%, in wholesale and retail trade and repair of motor vehicles – 2.6%, and in education – 2.2%.

In calculating GDP using the final use (or expenditure) method, which shows where resources in the economy were directed—to consumption, investment, or public services, the main growth in GDP in the third quarter of 2025 was driven by general government expenditure (12.2%) and gross fixed capital formation (or, more simply, investment) (11.5%).

In addition, final household consumption expenditure grew by 6.7%, according to the State Statistics Service.

“In the third quarter, there were significant shifts in the structure: public finances, investment in fixed capital, and household consumption expenditure strengthened noticeably. In terms of production, the main drivers were construction, the public administration sector, energy, trade, and education. It was these sectors that shaped the positive dynamics of the quarter,” said Igor Gonchar, deputy chairman of the State Statistics Service.

The day before, the State Statistics Service reported that Ukraine’s real GDP in the third quarter of 2025 grew by 2.1% compared to the third quarter of 2024, while in the second quarter of this year the same indicator was 0.8%, and in the first quarter – 0.9%.

As reported, at the end of October, the National Bank also estimated Ukraine’s real GDP growth in the third quarter of 2025 at 2.1% compared to the same period last year, while earlier it had forecast it at 2.4%.

According to the updated forecast, the estimate of real GDP growth in the fourth quarter of this year has been revised down to 3.4% from 3.5% in July.

Overall, the National Bank has lowered its GDP growth forecast for 2025 to 1.9% from 2.1% due to energy shortages, the destruction of gas production facilities, and labor shortages, and for 2026 from 2.3% to 2%. The inflation forecast for this year has been improved from 9.7% to 9.2%, while the forecast for next year has been kept at 6.6%.

 

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Erdogan says peace settlement in Ukraine approaching

Turkish President Recep Tayyip Erdogan expressed optimism about the prospects for peace in Ukraine after talks with Vladimir Putin in Ashgabat, Turkmenistan, Turkey’s Anadolu news agency reported.
Erdogan told reporters on the side of the plane that Ankara also hoped to talk to U.S. President Donald Trump to assess a potential peace plan.
“After this meeting with Putin, we hope to be able to also discuss the peace plan with US President Trump. Peace is around the corner; we see it,” Erdogan said, referring to his bilateral meeting with Putin in Turkmenistan on Saturday.
Speaking about regional security, Erdogan warned against turning the Black Sea into a confrontation zone. “The Black Sea should not be seen as an arena of rivalry. It will not benefit Russia or Ukraine. Everyone needs freedom of navigation and security in the Black Sea,” he said.

 

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Belgium sets condition for EU: independent guarantees for $210 billion loan to Ukraine

Belgium is demanding “independent” and “autonomous” guarantees from EU countries in exchange for its support for a loan to Ukraine using frozen Russian assets, Euractiv reports.
The documents, which are currently being discussed by EU ambassadors, come amid frantic efforts by the bloc to persuade Belgium to back the so-called reparations loan ahead of a crucial European Council summit in Brussels next week.
Euroclear, a securities depository headquartered in Brussels, holds the vast majority of the EUR210 billion in frozen assets that will be used to support Kyiv’s military efforts, making Belgium a key player in the EU negotiations.
In a series of amendments to the Commission’s legal proposal, which was first circulated to EU ambassadors last week, Belgium notes that the guarantees must be “independent and autonomous so that they remain in force even if the loan is declared invalid.”
Other key Belgian demands include: other EU states covering potential legal costs that Moscow may claim from any member state; EU capitals refraining from concluding new investment agreements with Russia and cancelling all existing agreements; and a number of other measures to protect Belgium from potential reprisals by Moscow.
Luxembourg and Belgium signed a bilateral investment agreement with the then USSR in 1989, which has not been revoked to date.
In addition, it requires that Euroclear itself “not be liable” for providing the reparations loan, and that its “directors be liable only in cases of gross negligence.”
The Russian Central Bank announced that it would file a lawsuit against Euroclear in a Moscow court on Friday.
Belgium has repeatedly criticized the Commission for continuing with the loan program and has called on other EU countries to support the issuance of joint debt obligations instead. However, the latter option is currently being blocked by Hungary, which is also strongly opposed to the loan program.

 

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