RELOCATION OF UKRAINIAN ENTERPRISES UNDER MARTIAL LAW: GEOGRAPHICAL ASPECT

Abstract

The article deals with the relocation of enterprises in Ukraine under martial law. The essence of the concept of “relocation” is highlighted and the types of relocation are named. The dynamics of relocation of enterprises, geographical “business migration” and relocation of enterprises (companies) by industry are traced. The hostilities and the unstable economic situation in the regions of Ukraine caused the relocation and led to a new process of territorial relocation of business. It is noted that in 2022, with a view to preserving business and developing enterprises, a business relocation program was created in Ukraine, according to which enterprises may relocate production facilities from the territories close to or in the combat zone to one of the sixteen regions of the country. The article highlights the dynamics of relocated enterprises since the beginning of Russia’s full-scale invasion of Ukraine, and graphically presents the number of relocated enterprises, the presented information is based on the analysis of official websites. As of September 2023, 840 enterprises have taken advantage of the government’s relocation program to safer regions, 667 among them are already operating in the new location. The geographical aspect of the relocation of enterprises is revealed. Administrative-territorial regions, regional and local centers of relocated enterprises (companies, institutions) are identified. Most enterprises moved to Lviv, Zakarpattia, Chernivtsi, Khmelnytsky, Ivano-Frankivsk, and Ternopil regions. The leader in terms of the number of relocated enterprises is Lviv region, where almost a quarter of such enterprises employing more than three thousand people have been relocated. It is noted that the Carpathian region have a relatively higher level of economic security, high export potential, and opportunities for restoring and increasing foreign trade with the EU member states in comparison with other regions of Ukraine. The relocated companies were analyzed by industry sector. Among the relocated companies, the largest number of enterprises are in the field of wholesale trade (44%); 6% of internally displaced enterprises are construction companies; 4.1% are real estate businesses (2023). Relocation sites were named not only for manufacturing enterprises but also for high-tech companies. The relocation optimization of the national production in times of war will preserve its own internal potential by intensifying production activities in the western regions of the country. The analysis of the relocation of Ukrainian enterprises under martial law, including the geographical aspect, allowed us to identify not only the geographical centers of relocation of enterprises, but also to trace the dynamics of their movement and determine their specialization. The results of the study will help to ensure a more efficient process of relocation of enterprises, which requires harmonization of the mechanism of state regulation of business activities (primarily at the level of territorial programs) under martial law and mobilization economy in the country.