Government response on russian war in Ukraine: Relocating business

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The russian war in Ukraine replaced not only millions of people but also businesses in the safer regions of Ukraine. The study aims to identify regional stakeholders’ emergency responses in reaction to the russian war in Ukraine associated with business relocations and their impact on the host region. Employing qualitative research methods, including focus group discussions and in-depth semi-structured interviews with 25 informants (representatives of departments of economic development of regional authorities and administrators of regional development agencies), the study was conducted between March and May 2023. The findings reveal a diverse range of relocation strategies, with a significant inclination toward safer western and central regions of Ukraine, which accounted for more than 70% of displaced businesses. The notable share of relocated companies are wholesale and retail trade companies and the processing industry companies – 40% and 32%, respectively. It is assumed that not capital-intensive companies were relocated first. The support from regional stakeholders played a crucial role in mitigating business challenges related to relocation (communication difficulties, market loss, supply chain disruptions, and employee relocation issues, providing comprehensive assistance, and facilitating integration into the new socio-economic environment). The study acknowledges potential biases in responses and emphasizes the importance of correctly interpreting results. The study results are helpful for policy-making regarding regional development and the post-war rebuilding of Ukraine.

Acknowledgment
The study was conducted within the framework of the State Budget of the Kyiv National Economic University named after Vadym Hetman on the topic “Displaced business in revitalization of regional ecosystems in Ukraine” (state registration number 0123U100357).

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    • Figure 1. Number of enterprises relocated under the Government Relocation Program (cumulative number of entities)
    • Figure 2. General classification of problems in the business relocation process
    • Figure 3. Difficulties of relocation for business
    • Figure 4. Difficulties of relocation for authorities
    • Figure 5. Communication between potential relocators and regional authorities
    • Figure 6. Stages of communication and coordination between localized businesses and regional authorities
    • Figure 7. Logistics support for enterprise relocation
    • Table A1. Key informants
    • Table B1. Data on the problems of relocated business
    • Table C1. Data on the support of localized businesses by regional authorities
    • Table D1. Data on the impact of relocated businesses on the host region
    • Table E1. Data on the prospects of the relocated business
    • Data curation
      Vladyslav Lavreniuk, Alla Ivashchenko
    • Formal Analysis
      Vladyslav Lavreniuk, Anna Kornyliuk, Vladyslav Horbov
    • Investigation
      Vladyslav Lavreniuk
    • Resources
      Vladyslav Lavreniuk, Alla Ivashchenko
    • Visualization
      Vladyslav Lavreniuk, Anna Kornyliuk
    • Writing – original draft
      Vladyslav Lavreniuk, Yevheniia Polishchuk, Anna Kornyliuk, Vladyslav Horbov, Alla Ivashchenko
    • Conceptualization
      Yevheniia Polishchuk, Anna Kornyliuk
    • Funding acquisition
      Yevheniia Polishchuk, Alla Ivashchenko
    • Methodology
      Yevheniia Polishchuk, Vladyslav Horbov
    • Writing – review & editing
      Yevheniia Polishchuk, Anna Kornyliuk
    • Validation
      Vladyslav Horbov