How Russian missile strikes on Ukraine’s energy system affect business
Even a long blackout will not prevent most companies from continuing their work in Ukraine (Photo:REUTERS/Gleb Garanich/File Photo TPX)
A blackout will not prevent 72% of European Business Association (EBA) companies from working in the Ukrainian market, the EBA reported on Dec. 16, citing its Study on the Investment Attractiveness Index of Ukraine.
The EBA noted that over the past two months, the instability of Ukraine’s power grid has forced 66% of companies to change their work schedule, 40% to reduce production or services, and 12% to close some offices, branches, or outlets. Another 9% suspended work or closed part of their premises. However, only 1% have completely ceased operations, and 18% of the companies surveyed reported that they were not, or were minimally, affected by the power outages.
To minimize the impact of power outages, 86% of businesses have installed generators or other alternative power supply, 65% use alternative sources of communication and the Internet, 25% transferred their data to the cloud, and 22% are implementing cybersecurity measures. Only 10% of businesses had to relocate their business or staff due to the blackouts.
However, these preparations have incurred significant costs for business. Thus, 40% of the companies surveyed reported that their expenses have already amounted to $50,000, another 22% report expenses within $50,000-100,000, 24% said the expenses have varied within $100,000-200,000, and 14% have already spent more than $200,000.
Finally, most companies, namely 72%, claim that a prolonged blackout will not force them to leave the Ukrainian market, 20% hesitated to answer the question, and only 8% admitted to the possibility in a worst case scenario.
“The situation in the energy sector remains extremely tense due to weekly massive shelling of our infrastructure,” said EBA Executive Director Anna Derevyanko.
“Companies have to spend significant funds to adapt and be able to work even during prolonged outages. However, we see that even in the conditions of constant energy terror, almost no one stops working completely.”
The survey was conducted as a part of the EBA Study on the Investment Attractiveness Index of Ukraine from Nov. 29 to Dec. 13. The survey involved 100 top managers of EBA member companies. The EBA unites more than 1,000 companies and is one of the largest business organizations operating on the Ukrainian market.
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