Denys Shemyakin, Director of the Reform Support Team at the Ministry of Economic Development and Trade of Ukraine during the EUEA expert discussion, “Post-war challenges in the energy efficiency sector”, noted the following:
«Regarding the impact of the war on the economy of Ukraine, the following figures can be recorded: according to the survey: 18.7% – enterprises stopped; 28.1% – almost stopped; forecast drop in GDP is in the range of 30-35%; at least USD 9.6 billion – losses of state and private sector enterprises; business activity is reduced; export restrictions due to port blockades.
✔️ The key challenges currently expected are: a wave of bankruptcies and the possibility of enterprises shutdown, disrupted supply chains, problems with customers, low diversification of energy supply, and big problems with port blocking.
✔️Key priorities are EU integration and national security, on these two imperatives, the committee built its work. It is clear that for this it is necessary to ensure macro-stability, at the beginning of the war the NBU has shown the stable operation of the system, a program of pre-qualification of people is envisaged, labor market reform and infrastructure modernization are planned.
✔️ The key tasks of the economic block of the recovery and development plan can be divided into:
➖ short term: expansion of business support programs, focus on SMEs, grant programs (for a recycling enterprises (up to UAH 8 million), for gardens, for agrarian sphere; there are also grants from UAH 50,000 to 250,000);
➖medium term: focus on implementing guarantee instruments from partner governments to attract investment, reducing the regulatory and tax burden on business, reduction of labor taxes, privatization of all state non strategic assets;
➖strategic: in addition to the focus on the export of processed products with a higher share of added value, we add a trend towards innovation, adaptation of Ukraine’s economy to the criteria necessary for EU integration.
Top priority projects in this field:
1. «Investment menu» (indicative planning of the development of the processing industry for 2023-2032),the largest project that is planned to be implemented.
2. Establishment of the National Fund for Structural Transformation of the Economy – Bank of Reconstruction and Development – non-profit structure focused on supporting medium and long-term projects for industrial development.
3. Development of a network of industrial parks.
4. Implementation of the policy of procurement of goods, works and restoration services, including with the funds of donors, through Prozorro.
5. Insurance against war risks.
6. Effective employment programs, inclusive labor market.
7. Implementation of the economic part of the Association Agreement between Ukraine and the EU.
8. Ukraine-EU multi-cluster economic partnership.
How will the implementation of the proposed measures in the Recovery Plan be monitored?
«Currently, there is a portal according to the plan – recovery.gov.ua, where all projects with specific deadlines and KPIs will be entered. Then the plan will have been completed, information will have been collected from donors and the public by September 26, 2022, and sectoral discussions will be held. The conferences are going to be held in September, one with the British side, the other one with the German side, in order to attract the resources of international partners. It is also planned to create a national agency that will deal with implementation».
The issue of enterprises relocation: how many enterprises have been successfully relocated, where are they moving?
«According to the program of enterprises relocation, which has been in operation since the beginning of the war. As of July 29, 1766 applications were received, of which 39.4% (692) were successfully relocated, mostly micro and small enterprises. The main part of the applications from Kharkiv, Donetsk, Luhansk regions and from the city of Kyiv were mainly relocated to Lviv region. The program is working now, an application is submitted on the portal, which will allow you to receive compensation for transportation or free transportation through Ukrposhta / Ukrzaliznytsia.
As for the «Svoya sprava» – program, these are grants from UAH 50,000 to UAH 250,000. The program works through the Diya portal, the funds can be used for purchasing or leasing equipment, renting premises, and purchasing raw materials.
Grant applications: https://diia.gov.ua/
Grant for processing industry: https://diia.gov.ua/services/grant-na-pererobne-pidpriyemstvo
More details in the video recording of the discussion: https://cutt.ly/bZgD9YR [07:00-24:00]