Amid the prolonged mobilization, the head of the parliamentary committee on economic affairs, Dmytro Natalukha, said that since the start of the full-scale war, Ukrainian companies have lost an average of 10-20% of their workforce through conscription or emigration. The renewed Russian offensive this year has caused an even greater exodus.
In his commentary for the Financial Times, Natalukha noted that more and more businesses in Ukraine could close due to a lack of resources, which would negatively affect the economy. According to his forecasts, the situation could reach a critical point by the end of September.
“You can mobilize a million people, but without the resources to arm them, it will make no sense. The army will be defenseless if the economy collapses,” the deputy emphasized.
However, Natalukha expressed hope for the adoption of a bill on economic reservation, which would allow 895 thousand people to keep their jobs and attract about 200 million hryvnias to military needs. He noted that this money would be independent of political circumstances, such as the actions of Hungarian Prime Minister Viktor Orban or the US presidential election.
However, the initiative is controversial amid a shortage of soldiers on the front lines. Some criticize the draft system, which depends on finances, as unfair. Natalukha pointed out that about 800,000 men are trying to avoid mobilization by working illegally and changing addresses. This is forcing TCC employees to pay more attention to companies where employees are physically present.
Oleg Gorohovsky, co-founder and CEO of Monobank, noted that in times of war and economic crisis, it is difficult to avoid unpopular decisions. He emphasized that in a situation where the aggressor’s resources exceed Ukrainian ones, “it is not about justice, but about efficiency.” Highly skilled workers, such as programmers, can be more useful in the rear than on the front lines.
Natalukha added: “You can’t win a war just by being fair. War is unfair in itself.”
Economy booking
Natalukha previously stated that the shadow economic booking in Ukraine is estimated at $700 million to $2 billion per year. According to him, the implementation of one of the projects could attract $5 billion to the state treasury, which is 40% of the additional budget for the army.
The Verkhovna Rada is considering a new idea for economic reservation, where businesses would “pay” for it with goods and services. According to the Ministry of Economy, a total of 1.2 million people in Ukraine could be reserved from mobilization to meet military needs.
