Ukraine has changed rapidly since Russia’s annexation of Crimea and the outbreak of fighting in the Donbas. The destruction of infrastructure, new dividing lines and the closing of the Russian market, while the EU market has opened, have all permanently changed Ukraine’s economy. This study is unique, as it pays tribute to Ukraine’s economic diversity by focusing on several of its regions, while also taking an industry perspective by conducting interviews with local large and medium-sized private enterprises about how their businesses have changed their operations in 2014-2015 in comparison with pre-conflict period. The focus of this report is on how enterprises are dealing with the country’s evolving political, social, economic and security dynamics and how that is changing the national economy.
The aim of the study is to share information about local economic conditions that will aid the Ukrainian government, international donors, and the OSCE in improving Ukraine’s economy.
The Report “Economic Connectivity of Ukraine” examines how the on-going armed conflict in the East of Ukraine, the annexation of Crimea by the Russian Federation, and the overall political tensions in Europe have affected trade relations and the business climate of Ukraine. The report takes a company’s perspective to review in detail 1) internal connectivity between Ukrainian territories, and especially with Crimea and areas of the Donbas not under Ukraine’s control; and 2) external connectivity with Ukraine’s main trade partners including Russia and the European Union (EU).