With almost three years into Russia’s invasion of Ukraine, business owners and academics discuss how the country’s economy may develop post-war.
After nearly three years of Russia’s full-scale invasion of Ukraine, there are many unknowns regarding when and how the war may end.
What is certain is that whatever Ukraine’s future looks like post-war, the process of rebuilding its economy will be complex. Issues such as labour shortages and supply chain damage will likely persist long after the fighting stops.
Take Olteya, a Ukrainian footwear business. The company owns a factory in Zhytomyr but is struggling to stay afloat with a shortage of male employees due to the war.
“A lack of staff makes it hard to focus on exports,” Olteya founder Vita Korovina told Euronews. “We don’t see the point because we can’t plan ahead. For example, if we take summer orders for winter shoes, there are too many risks. We might not deliver on time.”
The factory is currently staffed with women and a few remaining male employees. Korovina said her “biggest fear” is that she’ll have to close production if these men are taken to the military.
The employee shortage remains one of Ukraine’s most pressing economic issues.
Another issue facing the Ukrainian economy is exports. Although the EU lifted most restrictions on importing Ukrainian products, it later reintroduced tariffs for certain commodities, including eggs.
Some countries, such as Slovakia and Poland, have also implemented further restrictions on Ukrainian exports to protect their economies.
“Non-functioning ports make exporting difficult and shipping through the western border is very expensive and slow also due to Polish farmers’ frequent protests,” Korovina explained.
From the perspective of someone living in Ukraine, Korovina said foreign aid will be important for supporting certain industries post-war, including renewable energy fields.
“Homes, factories, and infrastructure need urgent repairs. I think it will require a lot of help from abroad,” she added.
It’s unclear what a post-war scenario will actually look like for Ukraine. At the moment, Russia occupies large portions of the country’s territories.
Source: EuroNews
