**Ukraine’s Businesses Rebuild Alone Amid Relentless Russian Strikes**
In the face of relentless Russian attacks, Ukraine’s businesses are struggling to rebuild and recover. A recent incident in Kyiv serves as a stark reminder of the challenges they face.
On June 10, a Russian drone struck a warehouse belonging to Oleksiy Tarnopolskiy’s tea and coffee business, Gemini. The attack left nothing but charred remains of his inventory. Despite the devastating loss, Tarnopolskiy is determined to get back on his feet.
“It’s good packaging,” he jokes as he shows off intact coffee packets amidst the wreckage.
However, unlike residents whose homes have been damaged by Russian attacks, Ukrainian businesses lack government-backed support programs. This leaves them with limited options to rebuild and recover.
“We couldn’t salvage any inventory, and over a week later, the air is still thick with the smell of charred plastic and coffee,” Tarnopolskiy recounts.
Gemini is just one of many Ukrainian companies that have suffered at the hands of Russia’s full-scale invasion. The war has disrupted supply chains, destroyed infrastructure, and left businesses on the brink of collapse.
**A Slow and Inefficient Process**
The process to document damages and receive compensation for businesses is slow and inefficient. Senior economist at the Center for Economic Strategy (CES), Vladimir Landa, notes that any future program for businesses is unlikely to be comprehensive or efficient.
“For example, the compensation mechanism for the Iraq-Kuwait War 35 years ago just finished its work in 2022, paying about 15% of the total damage,” he says.
**Alternative Options**
In the absence of government support, Ukrainian businesses are relying on alternative options. Some are applying for favorable loans under the government’s 5-7-9% program, which offers reduced interest rates for businesses.
However, this hasn’t worked for everyone. Brevda, owner of a car wash that was damaged in an attack, needed $80,000 to repair his business but could only take out a maximum of $6,000 under the program. He sold 50% of his business to private investors to fund its reconstruction.
**Support from Customers and Suppliers**
Businesses are finding support from their customers and suppliers. After OMG Shoes lost 35% of its production capacity and $24,000 in materials during an attack on June 10, customers rallied behind the company.
“Many of those goods weren’t even fully paid off with our suppliers yet, which now puts us in a double bind: no product and a debt to cover,” owner Oksana Holod says.
In one day, nearly all the remaining stock was sold out. Suppliers called to postpone payments, and customers shared messages on social media, leading to a tenfold surge in orders.
**A Community Rallies Behind**
Gemini received similar support from partners who offered donations. However, Tarnopolskiy turned down these offers, insisting that money go to military or humanitarian needs.
“The best way to help a business is more orders, more clients, and more purchases,” he says. “We want to set an example. We are open and we want to work.”
**A Community Comes Together**
Ukrainian businesses are not alone in their struggles. A community of entrepreneurs, suppliers, and customers is rallying behind them.
As the war drags on, it’s clear that more support is needed to help Ukrainian businesses rebuild and recover. The Kyiv Independent will continue to bring you stories like this one, highlighting the resilience and determination of Ukraine’s business community in the face of adversity.
**Support the Kyiv Independent**
To help us keep bringing you these stories, please consider joining our community for as little as a cup of coffee a month.
