“Winter has been particularly difficult”: in Ukraine, businesses withstand power cuts

This winter, Russia took advantage of temperatures dropping to -20°C to launch an unprecedented attack on the energy system, destroying 60% of the country’s generation capacity. From December 1 to February 28, Moscow launched over 14,670 bombs, 738 missiles, and nearly 19,000 drones, stated Volodymyr Zelensky on March 1, the first day of spring in Ukraine.

Skyrocketing Costs

Indeed, the entire country is bearing the full brunt of the energy crisis. 

“On one hand, production costs are rising for businesses, and on the other, demand is shrinking,” explains Nataliia Kolesnichenko, an economist at the Centre for Economic Strategy. “People are cutting back on non-essential goods and services.” 

The National Bank of Ukraine has even revised its growth forecast for the year downward, now estimated at 1.8% compared to a previous 2%. The situation is fueling inflation of around 7% and weakening the competitiveness of Ukrainian businesses. The winter has been particularly grueling for the metallurgical industry, a massive energy consumer already weakened by the war, as its sites are often located near the frontline.

Source: L’Express. 

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