Results of AHK Ukraine survey on war-related damages to German companies

Twelve German companies responding to an AHK Ukraine survey reported losses caused by russian attacks, with most suffering losses within the past three months. The affected businesses primarily operate in retail and trade, manufacturing, and pharmaceuticals and healthcare. None of the respondents reported deaths or injuries among their employees. Companies also reported no injuries among other people at the affected premises, including partner companies’ employees and visitors, citing strict safety protocols. 

Most respondents reported damage to warehouses and inventory. Several administrative and customer-facing premises were also damaged. The companies estimate their direct losses at approximately EUR 35 million and report additional indirect losses around EUR 68 million. 

Asked what support they expect from the Ukrainian government following recent attacks and in preparation for further risks, respondents most frequently called for expanded subsidised war-risk insurance. The second most common request was to increase the quotas for logistics personnel eligible for exemptions from military mobilisation. Other priorities included temporary tax relief and simplified border-crossing procedures. None of the respondents selected government-subsidised financing as a preferred support measure. 

Regarding support from the German government, the vast majority of respondents likewise called for affordable war-risk insurance. Given that German government-backed cover already exists, the priority is to extend its scope to businesses and investments already operating in Ukraine, ensuring that support covers existing operations as well as new investment projects. 

AHK Ukraine recognises the need for sustainable funding to expand war-risk insurance and understands that the Ukrainian government is considering a VAT increase as a major source of funding. However, businesses hold differing views on this proposal, and the survey does not establish a common position in favour of an increase. AHK Ukraine’s position is that any tax increase should be a last resort. Before raising VAT, the government should demonstrate that it has exhausted other viable options, particularly improving tax collection from the shadow economy and identifying scope for budget savings.