More than 50% of businesses in frontline areas have suspended or curtailed their operations

More than 50% of businesses in frontline areas have completely halted operations or are operating at reduced capacity due to security risks. The negative trends in the economic sector have led to the loss of up to 100,000 jobs for the local population. 

This was reported by Minister of Community and Territorial Development Oleksii Kuleba following a government meeting on the support and development of frontline territories.

Kuleba noted that more than 6.6 million people currently live in these communities, facing daily shelling by Russian forces amid the destruction of infrastructure.

To stabilize the situation, the government is directing at least 50% of the State Regional Development Fund’s resources directly to projects in frontline communities. For the first time at the level of state strategy, the concept of “frontline territories” has been officially established, and specific priorities for their support have been formulated. State policy now focuses on the rapid restoration of damaged housing, the construction of protective structures, as well as funding for healthcare, logistics, education, the agricultural sector, and local businesses.

Ukraine is preparing a major package of benefits and incentives for frontline regions, designed to support businesses and people living and working in or near combat zones. The government plans to compensate for losses, preserve jobs, and stimulate economic activity in the communities most affected by the war.