A year ago, the shelves of the Novus supermarket chain in kyiv, Ukraine, emptied quickly as its supply networks took a major internal shock. The new product has become a panic buy.
Oleksiy Panasenko, General Director of Operations at Popular Operations, tells how Novus, another major retail chain, managed to adapt.
And when Ukrainian troops forced the Russian army out of the capital in the spring, the retail sector and a wide range withdrew.
Data from the Ukrainian European Business Association has revealed that the member end has fully restored operations.
But then the missile attacks began in October, dealing a heavy blow to Ukraine. Russia has attacked power transmission networks and substations across the country, stealing them during freezing winters and dealing a heavy blow to heavy industry.
The economy shrank by a third last year, the biggest drop since Ukraine’s independence from the Soviet Union in 1991. Before the Russian invasion, the annual economy totaled $200 billion.
Impact of the war on the Ukrainian economy
The war is in its second year; the challenges are great. Last summer, Ukrainian officials dropped more figures about the country’s economy, particularly to reveal a disproportionate export transaction.
The treaty saved Ukrainian agriculture, which accounts for about 12.4% of GDP and 41% of the total war.
Since mid-February, Ukraine’s grain exports for the 2022-2023 season fell from June to June by 29.31% to 29.72 million tons.
The big increase in military spending, including army salaries, also boosted the economy, said Vitaly Vavrishchuk, head of research at ICU Investment House. Ukraine spent 1.5 trillion in 2022 on its defense sector, subject to a third of its economic output.
But despite the positives, Ukraine is far behind where it was before the war.
The invasion destroyed schools, ports, roads and bridges. The kyiv School of Economics has assessed the damage to infrastructure due to the war, at $138 billion in December.
Poverty rates have risen and the budget deficit is expected to reach $39 billion in 2023 after tax revenues collapse. The government is dependent on Western aid: most of it from the US and the EU.
Panasenko said that the company lost about 31% of the stores in kyiv in December and about 21% in January.
The steel sector is the hardest hit. Ukraine was the 14th largest steel manufacturer before the war.
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