A number of reasons have made the region particularly attractive for Ukrainian business.
The war in Russia against Ukraine made serious adjustments to the geography of Ukrainian business. The western regions of our country are currently receiving a special boost in development. In addition to the hundreds of thousands of refugees who have flocked here from all over the country, the war has made the region attractive to Ukrainian entrepreneurs who, by fate, find themselves in a war zone and forced to relocate. For this reason, the Western region of Ukraine has every chance to become a new industrial center of the country, said Mykhailo Bno-Ayrian in the article “Second breath: how western Ukraine got a chance for industrialization” .
If everything continues as it is now, western Ukraine, especially Lviv, Zakarpattia, Ivano-Frankivsk (and possibly Volyn and Chernivtsi regions) may become a point of industrial growth in the next year or two. According to the author, there are several reasons.
Reason one. Relocation
As of today, the regions of western Ukraine have received more than a thousand applications for relocation of enterprises and businesses. Of these, just over 200 companies actually moved. This is what can be seen according to official statistics within the relocation program of the Ministry of Economy. Of course, most of them are now small and medium-sized businesses. But every day the list expands with more and more significant productions.
The second reason. Logistics
Another argument in favor of western Ukraine is logistics. This region inevitably becomes a key window for exports. The reason is the blockade of all seaports in Ukraine.
Therefore, several processes will objectively take place:
- The existing railway infrastructure will be expanded.
- The logistics infrastructure of the western ones will be expanded. oblasts.
- Processing plants located as close as possible to the EU border will be established.
The third reason. Activity of local authorities
After the beginning of the war, it was the regional state administrations that became the drivers of the relocation and in principle worked and still work well in this direction.
The fourth reason. Labor migration
It is estimated that at least two million people have moved to western Ukraine. Tens of thousands will stay here forever. And this is the availability of resources, so necessary for business to work.
The fifth reason. EU border
The proximity of the border with Europe is one of the key factors that will influence the development of production in the region. This includes exports, imports, and even investment.
The sixth reason. The Russia-Belarus Factor
The collective position of most EU countries in their unwillingness to trade goods and services with Russia and Belarus opens up new opportunities for Ukraine and Ukrainian business.
The list of goods traditionally supplied by Russia and Belarus to the markets of the Baltic States, Poland and other Eastern European countries is no longer exported there due to the EU embargo.
Reason seven. Soviet heritage
During the Soviet era, many industrial giants worked in western Ukraine. After privatization, only a small part of them kept production. Many have sunk in the summer, and now in their territories office and retail space. But there are also many companies that are, in fact, in a preserved state, with all the documents, access roads (including railways), the presence of gas and electricity. Many of them could potentially become donors for relocation.
For details on what makes the Western region of Ukraine attractive for business and what central and local governments need to do to help our country's second industrialization, read the article Mykhailo Bno-Ayrian “ Second Breath: How Western Ukraine Got a Chance for Industrialization “.
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