Page 49 - UKRRptDec23

Businesses continue to develop in Ukraine despite the second year of a full-scale war. In 2024-2025, the Nestlé company in Ukraine plans to employ and take on internships for 630 people as part of the Nestlé Needs YOUth youth program. Nestlé will employ 320 people under 30, and another 310 people will be involved in internships. Since the beginning of the year, Nestlé's Ukraine has hired over 80 employees under 30 as part of Nestlé Needs YOUth. At the beginning of the year, Nestlé in Ukraine announced a $42M investment in constructing a new factory in the Volyn region. Meanwhile, the Aurora multimarket chain opened a 7,000-square-meter distribution center in Lviv on November 8. It became the third for the company, after centers in Poltava and Vinnytsia, and created more than 300 jobs. The total area of the three distribution centers is 56,000 square meters. Currently, the company is increasing its store assortment's share of Ukrainian manufacturers.
The Ukrainian sovereign fund will seek investment to develop multiple enterprises and sectors of the economy. The Ukrainian Sovereign Fund (USF), the concept of which was presented by the head of the State Property Fund of Ukraine (SPFU), Oleksandr Fedoryshyn, will operate as a holding, which will include from six to 11 branch subholdings. As he explained, creating the USF is one of the SPFU’s priorities. All strategic state companies that are not subject to privatization should gradually enter the new structure. The USF’s task will be the preparation of development strategies not only for individual enterprises but also for industries. At the same time, USF will look for investments to implement these strategies. The USF’s structure will comply with international standards and norms, in particular, those of the IMF and OECD. Currently, the SPFU is working on a draft law that will define the main principles of the USF. It will also determine the criteria by which state assets will be included in the fund.
Ukrainian businesses are building new capacities and increasing profits.Ukrainian company Lubnymash is building a new elevator in the Dnipropetrovsk region, the first silo, with a volume of 9,663 cubic meters, has already been installed. Installation of the second silo of the same type has begun. Transport equipment at this elevator complex will have a capacity of 175 tons per hour. At the same time, the large Ukrainian manufacturer of glass containers, Kostopilsky Zavod Sklovyrobiv in the Rivne region, generated a net profit of ₴408.56M in the first nine months of the year, which is 260% more than for the same period in 2022. The company's operating profit increased by 230% to ₴504.2M, and gross profit increased by 160% to ₴567.1M. The plant produces bottles for perfume and medical products, bottles for alcoholic and non-alcoholic drinks, etc. The plant's products are sold in Ukraine and exported to Poland, Hungary, Romania, Slovakia, Spain, and Moldova.
Due to Russian aggression, almost 8,000 businesses have moved to other regions of Ukraine. Since the beginning of the full-scale war, 7,820 Ukrainian companies have changed their region of registration. It is reported that 27% of the total remaining enterprises are from Kyiv, with the Dnipropetrovsk region (11%), and the Donetsk region (8%) in second and third place, respectively. At the same time, Kyiv also leads the list of areas to which companies are moving; 22% of the total relocators chose the capital. Despite military operations and proximity to the front line, entrepreneurs also choose the Kharkiv and Odesa regions, with 10% each. The route from Kyiv to Odesa was the most popular direction for business relocation, chosen by 350 companies. In second place in terms of popularity is the road from the
49 UKRAINE Country Report December 2023 www.intellinews.com