"Economic booking requires a sense of fairness," said Anna Derevyanko, Executive Director of EBA.

On Energy and Preparation for Blackouts

As winter approaches, the critical question arises: can businesses operate during blackouts? In your opinion and based on the experiences of Association members, has there been thorough preparation by businesses, and what solutions are companies implementing to safeguard their production from potential outages? Are there any data on investment amounts in energy independence?

Most companies have already prepared for possible outages, as this is not the first challenging winter. By summer, companies recognized the need to adapt to new difficult realities and invest in equipment. We have analytical data from member companies of the Association, and as of now, 85% of businesses have invested in their energy independence. Typically, companies invest in alternative sources such as inverters, solar stations, and powerful generators. Additionally, large companies have the capability to purchase volumes of imported electricity. This indicates that everyone understands the necessity of preparing for tough times, and they are indeed preparing. We also compared how many companies invested in energy independence before and during the war, and it turned out that 65% of companies made investments before the war, while this number has increased by 20% now. During the war, we observed that only 15% of companies are not investing in equipment to maintain their energy independence. According to our data, 55% have invested up to $200,000, and 30% — more than $200,000. Yes, companies are apprehensively awaiting winter, but there is certainly no panic. Therefore, I am confident that businesses are prepared and will continue to operate.

Can businesses today expect some support from the government — are loans available for the installation of energy equipment? How important is this?

Companies are utilizing programs introduced by the government, and we see that even more companies are taking advantage of various grant programs. This is quite understandable, as loans have to be repaid, while grant assistance is non-repayable. Consequently, grants are more in demand from businesses, although a certain portion of companies is attracting loans under the "5-7-9%" program.

The published findings of the European Business Association's survey "Developing Business Energy Independence" show that, on average, businesses rate their readiness for the winter season at 3.84 out of 5. In this context, companies rated government support at 2 out of 5. What do such results indicate?

Firstly, it suggests that businesses rely on themselves and are preparing independently for a challenging winter and potential prolonged power outages. This is not about expecting help from the government; rather, it seems that the government is us, each of us has a certain zone of responsibility and a share of accountability. Our business is responsible, so we understand that whatever we can take on, we will take on, and we are accountable for our teams, for our production, and we do not shift this responsibility onto the government, as the government institutions themselves are currently facing challenges; they have to make a multitude of various, sometimes unpopular decisions, which is their responsibility. What businesses definitely expect from the government is clear and equitable rules of the game, and I believe the government should establish them. Additionally, in my opinion, the government can assist with certain simplifications of customs clearance for energy goods, with duty-free imports of certain categories, possibly with reducing VAT or making specific adjustments to tax incentives to facilitate winter preparations.

What businesses definitely expect from the government is clear and equitable rules of the game, and the government should establish them

On Economic Reservation and Mobilization Policy

One of the challenges for companies during the war is a labor shortage, partly due to mobilization. What is the Association's position on economic reservation? Will such reservation help retain valuable personnel?

Currently, we see that we have a labor market skewed towards employees rather than employers, due to the mobilization policy and partly due to a massive wave of migration.

In short — there are not enough people. To address the issue of those who remain in Ukraine, to bring them into the labor market, it is necessary to initiate the economic reservation process, as well as restore reservation based on critical principles, which is currently suspended, and make reservation through Diia possible based on criticality.

Businesses consider it necessary to establish an economic reservation procedure. However, in discussions with representatives of the Ministry of Defense, we also understand that this mechanism must indeed have an element of fairness. But how to find fairness in this challenging task? I believe this is only possible through communication, where military and business can listen to each other.

And I hope we have at least managed to hear each other, meaning the Ministry of Defense and the European Business Association, and we will establish this dialogue because through dialogue we will understand what the military needs and how we, as businesses, can address their requests. Meanwhile, they can understand our pain points and requests as businesses. Perhaps in such a tandem, we can find a normal, fair mechanism, including economic reservation.

Discussions on economic reservation are still ongoing; I do not know whether it will be fair or not, because if we fundamentally collapse the labor market, the economy, and ultimately the front, then the question of fairness will become irrelevant. I believe we first need to understand what we have as a foundation, then understand what we put into the term fairness, and simply listen to the warnings regarding economic reservation, what specifically lawyers, military personnel, and business people are saying?

And then find a way to reconcile these requests and find a compromise mechanism that will satisfy all stakeholder groups. I do not know what the final mechanism will be; I think businesses will adapt to the specific system proposed by the state, as the issue of labor shortages is very important for businesses.

We understand the needs for a military reserve, but the rear is also needed to generate income for the state, to ensure that institutions operate, and for the Armed Forces of Ukraine to receive funds. Moreover, what we hear about "busification" or other stories regarding TCCs, VLKs, also does not contribute to mobilization policy. The corporate culture needs to change, that is, there should be more respect for people, it seems to me, because if we provoke fear and hatred, it will never ensure a proper mobilization policy. Additionally, the healthcare system must operate effectively; it should treat people with respect, and the state must have resources to treat and rehabilitate everyone properly. These should be different aspects that can work as support for the Ministry of Defense.

Economic reservation could push the labor market situation towards a certain regulation, but we need to listen to the military, and we definitely need to talk openly about this, because businesses strive to survive and develop, pay taxes, salaries, but ultimately it is important for all of us to hold this state together and defeat the enemy.

What we hear about "busification" or other stories regarding TCCs, VLKs, also does not contribute to mobilization policy. The corporate culture needs to change

On the Future Increase of Taxes in Ukraine

A draft law No. 11416d on increasing taxes and raising the military levy is currently awaiting the president's signature. What is the Association's opinion on this document, has the business perspective been considered, and how could this draft law affect businesses if signed?

Our business understands the necessity of financing the army, funding the Armed Forces, and generally funding the state's ability to resist the enemy, so this is not even up for discussion. Moreover, our companies, which are large taxpayers, overwhelmingly create opportunities to maintain the revenue part of the state budget, from which defense is financed.

What concerns us, as representatives of transparent business, is that there are those who pay taxes and those who do not, and it is this factor of unfairness that has outraged some companies. They have said — how can taxes be raised for a certain part of society when another part pays nothing at all? And here is a question for the government: what can it do and will do to solve the issue of the shadow economy.

Regarding the text of the draft law itself, we managed to remove or modify some glaring norms during discussions with MPs and the tax committee, eliminating what would have been catastrophic for business. Ultimately, this is certainly not the draft law that businesses are ready to applaud, but it is a certain compromise version. Although some quite complex issues remain, for instance, the tax on bank profits, which will be collected retrospectively; this is a precedent. But I reiterate, this project is certainly a lesser evil compared to what could have been adopted without amendments.

We are confident that the mechanisms laid out in the draft law are insufficient to address the shadow economy, and this is precisely what irritates transparent businesses. The state needs to demonstrate more political will that translates into norms, instructions, regulatory acts, and real steps to combat the shadow economy. In this case, it would be much easier for transparent businesses to agree to tax increases. Because right now it looks like this: those who already pay taxes will pay more, while those who pay nothing will continue to pay nothing.

We need to ensure a proper fight against the shadow sector so that it gradually decreases in size