Page 31 - Ukraine OUTLOOK 2023

Due to the war, Ukraine lost out on UAH3bn in rent payments.
State and local budgets for the first half of 2022 lost more than UAH3bn
in rent, the Accounting Chamber said. At the same time, over the past
2.5 years, the consolidated budget received UAH196bn from rent, in
particular: UAH179bn from the use of subsoil, UAH6bn from the use of
radio frequency resources, UAH3.9bn from the use of forests,
UAH3.5bn from transportation, and UAH2bn from water use. In the first
half of 2022, income from annuities began to fall. Until 2022, Ukraine
received more than UAH1bn annually for the transit of Russian
ammonia. Currently, the only operator of the main ammonia pipeline in
Ukraine is not operating or paying rent. Revenues from rent for forest
use also decreased due to Russia's temporary occupation of the
territories where wood is harvested. Also, 69% of its customers stopped
paying rent for water use.

Retail:

The government has not been reporting retail sales numbers since
the start of the war, but consumption clearly has taken a massive
hit.

IT Sector:

One of the few sectors that has been doing well, other than
agriculture, is the export of IT services, which brought in $6bn
from exports in 2022.

IT is one of the government’s four pillars of the economy, along with
agriculture, metal and military equipment.

Over the first ten months of 2022, the export of IT services grew by
9.9% and brought in more than $6bn, surpassing the 2021 figure by
$542mn, according to data from the National Bank.

31 UKRAINE OUTLOOK 2022 www.intellinews.com