Managing foreign business operations in Ukraine in the context of war

Abstract

The development of foreign businesses is crucial for any nation's prosperity, including Ukraine, because they bring in valuable investments, international expertise, job opportunities for citizens, tax revenue, and industry growth. However, after the start of Russia's full-scale invasion of Ukraine in 2022, almost all foreign business operations were suspended . Currently, although businesses, including foreign businesses, are in the process of resuming operations, numerous challenges exist including unstable security situation, damaged infrastructure, disrupted supply chains disrupted, and highly unpredictable business conditions Hence, considering Ukraine's current situation, the government needs strategic initiatives to substantially attract foreign business operations but how to do so remains unclear. Filling this gap, in this article, I have conducted a comparative analysis of the situation before the war, assessed how hostilities have impacted the relevant business landscape, and outlined the measures implemented by the state government to ameliorate the situation. The primary objective of this article is to scrutinize Ukrainian legislation pertaining to foreign business endeavors, particularly focusing on the nuances of investment activities, while also investigating the repercussions of military operations on foreign businesses operating in Ukraine. Furthermore, I propose the concept of e-residency as a means to entice foreigners into engaging in business activities within Ukraine, alongside exploring various other strategies aimed at attracting individuals from other countries to invest and participate in Ukraine's business landscape.