Page 22 - UKRRptJun22

4.4 Corp profit
The number of businesses closed in Ukraine decreased from 32% to 17%. As of the end of April, the number of enterprises that had entirely ceased operations fell to 17% from 32% at the beginning of the full-scale war, as stated in the monthly macroeconomic and monetary review of the National Bank of Ukraine (NBU). The number of enterprises that have completely ceased operations has almost halved since the beginning of hostilities, however, 60% of enterprises operate below their pre-war levels. At the same time, small and medium-sized businesses are recovering more slowly than larger ones. According to the NBU, most enterprises operating in agriculture, transport, and processing resumed operations at the end of April. The most challenging situation is observed in the construction and mining industry, where trade congestion remains well below the pre-war level.
The state has registered a record number of new entrepreneurs. In the last week of May, 4,454 new Individual Entrepreneurs (FOPs) were registered, the largest figure since Russia's full-scale invasion of Ukraine. As well, the number of registrations of new legal entities is stable, with 643 new companies formed in the last week, reported Opendatabot. "This is the average rate of registration of legal entities in May and exactly 10 times higher than in the first week after the opening of the register two months ago," the statement said. In the first weeks of the war, the state registry did not work, and new businesses were not able to form an entity. Since the opening of the register, the number of new companies and sole proprietors has constantly been growing.
Small and medium-sized businesses in Ukraine have lost $85M. Small and medium-sized enterprises (SMEs) have suffered direct losses of $64-85B in the 75 days since the war began, stated the Advanter Group. SMEs have a total funding need of $54B, with 87% of companies in need of funding. In general, the business expects sales to decrease by 46% compared to 2021. In May, the business activity index reached its lowest level since December 2020 and is currently 33.82 points out of 100 possible points. This indicator reflects the ability of companies to increase turnover and create jobs. The worst expectations are in microbusiness, and the best in business with an annual turnover of UAH 50-500M. The lack of a sufficient number of solvent clients in the domestic market is the biggest obstacle to recovery, as confirmed by 64% of respondents. Also among the main factors: the unpredictability of the situation in Ukraine and the domestic market (51%), lack of sufficient capital (29%), and the destruction of supply chains (25%).
Russian assets in Ukraine will be transferred to the state. At today's meeting, the Cabinet of Ministers approved a document according to which Russian assets in Ukraine will be transferred to the state, stated Prime Minister Denys Shmyhal. According to him, the confiscated assets of the Russian Federation will be transferred to the newly created state enterprise, National Investment Fund. The president of Ukraine, Volodymyr Zelenskyy added that “Russia must pay for what it has destroyed in Ukraine. We will take away everything that Russia has in our country and direct these funds to strengthen our army, support the people and rebuild our country.”
Card terminals usage shows that the Ukrainian economy is gradually returning to work. The number of non-cash payment terminals owned by
22 UKRAINE Country Report XXXX 2018 www.intellinews.com