Survey: Ukraine’s businesses predict lower profits, complain about COVID-19

It has been just a day since the Ukrainian government imposed quarantine measures to counteract the spread of COVID-19 across the country, but local businesses are already reporting alarming trends in their activities, a recent survey shows.

More than half of the Ukrainian firms complain that it’s become harder to serve customers and work from offices, and they forecast lower profits, according to the survey, which was published on March 13 by the American Chamber of Commerce and Deloitte.

For the survey, the firms jointly polled 150 executives from 111 organizations – mostly foreign companies in Ukraine – on the effects of COVID-19, a disease that, so far, has infected three Ukrainians and killed one of them.

Although these figures are among the lowest in Europe, 61% of respondents expect a decrease in sales and cash flow, according to the survey.

Travel restrictions, a ban on public events, as well supply disruptions and price fluctuations were named among possible negative consequences for business from
COVID-19.

At the same time, the chance that businesses will start to make any changes to company management is relatively low. Only 12% of respondents believe that the pandemic will cause layoffs, and just 7% think it can cause salary cuts.

Over 60% of respondents also said that they have already created temporary departments to monitor the COVID-19 situation on a local level in Ukraine.

“Usually, they include top managers and representatives of human resources, security, administrative personnel,” the report reads. A third of such departments have daily meeting on issues connected to coronavirus.

Measures for employees

According to the survey, almost 90% of companies are planning to limit business trips and allow employees to work remotely.

Nearly 80% of respondents say they prioritize office security, saying it’s necessary to provide workers with disinfectants, disposable tableware and thermometers.

On the other hand, the respondents – 24% of whom were company CEOs – believe that helping workers overcome psychological stress isn’t a priority for companies. Only 22% of respondents says workers should be helped to cope with stress.

However, even in such a stressful situation and amid forecasts of lower profits, 65% of the companies don’t plan to lower their financial targets this year. Only 17% of respondents see a need to reduce their targets in 2020, the report reads.