The EBA presented updated proposals to support businesses in frontline regions

25/ 09/ 2025

The European Business Association’s Ukraine Recovery Committee, together with the EBA’s regional offices in Kharkiv, Dnipro, and Odesa, has prepared and submitted to the Cabinet of Ministers, the Verkhovna Rada, the Office of the President, and the National Bank of Ukraine an updated package of proposals to support businesses in frontline regions. The EBA expresses its gratitude to government authorities for taking into account a number of previous recommendations, in particular: the adoption of Government Resolution No. 991, which allows critically important enterprises in frontline regions to reserve up to 100% of their employees; the expansion of grant programmes for businesses in frontline regions. At the same time, the EBA has presented a new package of proposals (version 2.0), which includes an expanded list of measures aimed at preserving and restoring the economy of frontline territories. Among the key changes: Tax and regulatory support. The EBA proposes reducing the military levy and the single social contribution for employers in frontline regions, introducing a moratorium on increases in energy tariffs, implementing a zero rate of land and property tax during martial law and for one year thereafter, as well as temporarily suspending the blocking of tax invoices in combat zones. Logistics and infrastructure. Proposals include direct compensation of transport costs, preferential tariffs for transportation, and the creation of state and public-private logistics hubs. The EBA also recommends optimising “Ukrzaliznytsia” tariffs for businesses from frontline regions and introducing special export corridors. Financing and investment. The EBA proposes increasing the volumes of the “Affordable Loans 5-7-9%” programme, launching grant programmes for enterprises located within 70–100 km of the frontline, preferential loans for the restoration of damaged property, and a separate CAPEX grant track for medium and large companies. It is also recommended to legally restrict foreclosure on collateral of critically important enterprises. Special Economic Zones (SEZs). The creation of SEZs in frontline regions is proposed, with tax and customs benefits, simplified administrative procedures, preferential access to municipal property and infrastructure, as well as employment support programmes for internally displaced persons and veterans. Social and humanitarian measures. These include state support for the construction of shelters at enterprises, demining of territories, prioritising procurement from local producers for army needs, and benefits and grants for cultural and educational institutions. It is also proposed to adapt safety requirements for schools in order to avoid their mass closure during wartime. International dimension. The EBA calls on donors and international financial institutions to make support programmes accessible to businesses from frontline regions and to allocate dedicated funding quotas for these territories. The EBA is convinced that the implementation of these measures will help maintain business operations, secure jobs and budget revenues, and serve as a foundation for the long-term economic recovery of frontline regions.

The EBA expresses its gratitude to government authorities for taking into account a number of previous recommendations, in particular:

the adoption of Government Resolution No. 991, which allows critically important enterprises in frontline regions to reserve up to 100% of their employees;
the expansion of grant programmes for businesses in frontline regions.

At the same time, the EBA has presented a new package of proposals (version 2.0), which includes an expanded list of measures aimed at preserving and restoring the economy of frontline territories.

Among the key changes:

Tax and regulatory support. The EBA proposes reducing the military levy and the single social contribution for employers in frontline regions, introducing a moratorium on increases in energy tariffs, implementing a zero rate of land and property tax during martial law and for one year thereafter, as well as temporarily suspending the blocking of tax invoices in combat zones.
Logistics and infrastructure. Proposals include direct compensation of transport costs, preferential tariffs for transportation, and the creation of state and public-private logistics hubs. The EBA also recommends optimising “Ukrzaliznytsia” tariffs for businesses from frontline regions and introducing special export corridors.
Financing and investment. The EBA proposes increasing the volumes of the “Affordable Loans 5-7-9%” programme, launching grant programmes for enterprises located within 70–100 km of the frontline, preferential loans for the restoration of damaged property, and a separate CAPEX grant track for medium and large companies. It is also recommended to legally restrict foreclosure on collateral of critically important enterprises.
Special Economic Zones (SEZs). The creation of SEZs in frontline regions is proposed, with tax and customs benefits, simplified administrative procedures, preferential access to municipal property and infrastructure, as well as employment support programmes for internally displaced persons and veterans.
Social and humanitarian measures. These include state support for the construction of shelters at enterprises, demining of territories, prioritising procurement from local producers for army needs, and benefits and grants for cultural and educational institutions. It is also proposed to adapt safety requirements for schools in order to avoid their mass closure during wartime.
International dimension. The EBA calls on donors and international financial institutions to make support programmes accessible to businesses from frontline regions and to allocate dedicated funding quotas for these territories.

The EBA is convinced that the implementation of these measures will help maintain business operations, secure jobs and budget revenues, and serve as a foundation for the long-term economic recovery of frontline regions.