The full-scale war had a profound impact on Ukraine's economy. Ukrainian business faced a number of problems that needed to be addressed quickly. The retail sector, which was heavily dependent on imports of goods, was no exception, UNN writes.
From the very beginning of Russia's large-scale invasion, Western partners have been declaring and constantly reaffirming their assistance and support for Ukraine. At the same time, business is business, and not all foreign companies were willing to make concessions to their Ukrainian partners.
In particular, many suppliers stopped or "paused" cooperation with Ukrainian businesses after the outbreak of full-scale war. Others started working with Ukrainians only on the condition of full prepayment.
Ukrainian entrepreneur, founder of the international business community Board Andriy Dligach, in an exclusive commentary to UNN, noted that since the beginning of the full-scale invasion, many international partners in various fields have changed their attitude to the supply of goods to Ukraine, in particular, due to high military risks, many suppliers have switched to prepayment.
"The key is prepayment, refusal of credit, fast payment where possible, acceleration of payment - both for equipment and procurement," said Dligach.
According to him, the start of the large-scale invasion has led to many challenges for Ukrainian businesses. First and foremost, it is the ability to provide safe working conditions for their employees and production facilities, which is why the business has begun to relocate.
The second problem was the destruction of logistics routes, which resulted in shortages of both components and raw materials in most areas. The third problem faced by the business was financial resources, as everything became more expensive, the situation with lending deteriorated, debts became more expensive, etc.
In addition, as Andriy Dligach noted, the departure of personnel abroad had a significant impact on the work of Ukrainian businesses. Some employees remained to work remotely, but some resigned.
Due to the refusal of some Western suppliers to cooperate with Ukrainian businesses, retailers had to sell off their stock and look for new importers. The demand for certain goods led to an increase in their purchase price.
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Earlier, the Retailers Association of Ukraine (RAU) reportedthat in 2023, 102 retail companies paid more than UAH 28 billion in taxes to budgets of all levels in the form of mandatory payroll taxes alone. They also noted that the retail industry remains one of the largest employers in the country even during martial law.