Anton Piatygin

Executive Summary A year after the introduction of Action Plan 2.0, the International Working Group on Russian Sanctions presents its Action Plan 3.0, aimed at significantly intensifying the economic pressure on Russia to hasten the end of its aggression in Ukraine. The plan proposes a comprehensive set of sanctions designed to undermine Russia's economic and military capabilities. Key measures proposed include: 1. Asset Confiscation. Sovereign assets of the Russian Central Bank which are now frozen in the West shall be seized to provide Ukraine with the necessary military and economic support and fund its post-war reconstruction. 2. Enhanced Enforcement and Further Reduction of Oil Price Cap. Compliance with the $60 per barrel price cap on Russian oil should be strengthened by preventing “attestations fraud” and countering the shadow tanker fleet that Russia has assembled to bypass sanctions. Once the price cap is credibly enforced, it should be ratcheted down by $10/bbl to $50/bbl.      3. Comprehensive Sanctions on Key Exports. Sanctions must be expanded to cover LNG, pipeline gas, fertilizers, and metals. The full embargo on uranium, aluminium, and steel products should be introduced. The remaining imports from Russia are to be subject to across-the-board tariffs. 4. Restrictions on Access to Critical Technologies. The Coordinating Committee for Multilateral Export Controls (CoCom) should be re-established to ensure compliance with bans on the export to Russia of critical technologies, equipment, and components used in the defense sector and oil and gas industry. It is also important to bolster corporate responsibility and target intermediaries in third countries “friendly” to Russia. 5. Financial Sector Sanctions. Further restrictions should be imposed on international financial transactions, limiting liquidity and credit availability for the Russian financial sector and blocking any transactions with all Russian banks and key financial institutions. Western banks still operating in Russia must be required to exit Russia or face heavy penalties for continuing operations. https://lnkd.in/dci49rbn

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Last week, I took part in a panel discussion on the transformation of government-business relations at the Kyiv International Economic Forum. And after this discussion, my opinion has not changed: there will be no progress in these relations until the national law-enforcement system is completely restarted. I understand that when a country is at war, it needs taxes to better resist the enemy, and it also needs a larger security apparatus to effectively implement the decisions of the country's political leadership. I must admit that the law enforcement sector, together with the tax authorities, worked effectively in the first year of the war, when it was necessary to quickly find Russian assets and take property from the alleged Medvedchuks in favor of the state. But seizing is only half the battle. These assets were not sold to the market or privatized. That is, instead of new effective owners or managers, these assets were simply transferred to the management of officials or unscrupulous cops. The security officers that had previously searched for and nationalized the assets of traitors and Russians felt the taste of profit, improved their financial condition, and then gradually switched to milking private Ukrainian business. This is the nightmarish reality of the last two years. It is quite clear that in a state of war the role of the state in the economy is growing, but there is a limit to everything. I agree that it is necessary to fill the budget, but another question is why is this happening only at the expense of white business? Where are all the goods smuggled without customs clearance, where are all the illegal tobacco and dozens of other gray industries? They report that customs collects payments above the plan, but who sets those plans? Are we really seeing a decrease in gray tax schemes or smuggling? All businessmen want to live, create, and pay understandable taxes, and they do not want confrontation with the security forces. But when it comes to raising taxes once again, with a nanny in uniform already standing at the doorstep of their office or home, and businessmen seeing that shadow schemes continue to flourish, they have a lot of questions. Increases in tariffs, including taxes, should be accompanied by service improvements. Business wants to see that everyone is equal before the law and fiscal authorities. And it is ready to pay for this. But it is not ready to pay the state thrice - once for itself, once for those in the shadows, and once again separately to Comrade Major. And the main thing the business wants is no invest-nanny to help it under any circumstances.

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This Saturday, I was glad to join an important discussion at the Open House Forum organized by UCU Business School (LvBS) on "How to launch Ukrainian breakthrough products?" With Scott Sehlhorst, Olena Zanichkovska, and Mykola Maksymenko, we discussed the best trends in Product Development and Marketing. Some of my key points during the conversation: - The product-oriented mindset differs from the service-oriented mindset. However, we have the potential to change that. Venture investments and private equity seek new markets, and Ukraine remains highly attractive. Once the war is over, we anticipate a surge in investment because of our market's significant potential. To adopt a product-oriented mindset, we must make many right decisions. Yet, before we can make the right decisions, we will have many failures. And that's also part of the product mindset. Try to fail to see what didn't work so that you gain that experience.  Over the past two years, I've seen that investors are less concerned about the geographical origin of entrepreneurs, as this market doesn’t have a national identity. Their primary focus is on investing in strong founders. Despite everything, Ukrainian startups still make great products and sell them all over the world. Being a Ukrainian is a competitive advantage that can and should be used properly during pitches.

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🇺🇦Ukraine ranks 5th in the world in terms of the level of development of digital public services. This is stated in the results of the Online Services Index, an international study of the E-Government Development Index, which evaluates 193 countries of the world and is developed by the United Nations. Digitalization has completely transformed the interaction between man and the state.

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Read our first glowing review of our book!

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🚀 The Cryptocurrency Market: It’s Not A Russian Roulette I recently had the pleasure of speaking with Rzeczpospolita, a top-tier Polish daily, about the evolving cryptocurrency space, sharing my perspective on why this market is far from the "wild gamble" many still believe it to be. In our discussion, I emphasized that crypto is not about luck. It's primarily about innovation, strategy, and a vision for the future. Yes, volatility exists, but so does opportunity. To succeed in this space, we need to balance informed decisions with a long-term mindset. There is no point in starting investing without education. Regulation and education are key to ensuring this market reaches its full potential. And that is why the regulators need to redefine their approaches towards crypto. Because it's the future of finance, whether someone wants it or not. Read more: https://lnkd.in/eDRgtB4N

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Public-Private Partnership for European Integration and Ukraine's Recovery. Fully rebooting Ukraine's economy is unattainable through support aimed solely at macroeconomic stability. With the adoption of the €50 billion Ukraine Facility plan, there's finally a chance to also bolster businesses. The private sector, despite suffering catastrophic losses due to the war, remains a cornerstone of the economy. Approximately €7-8 billion might be allocated for business financing, of which no more than a third will go to private companies. Thus, there is hope. Hope for extensive support and incentives for reforms that should have been implemented over the years of independence. But what must Ukraine globally undertake to achieve the anticipated benefits? The answer is recognizing weaknesses and doing everything possible to rectify them. For instance, I have spoken with European analysts who have identified three major obstacles that could complicate Ukraine's path to EU membership: a low level of industrial development with a focus on raw materials industries, low labor productivity necessitating a reevaluation of educational approaches, R&D, innovations, resolve infrustructure issues, and crucially, institutional weaknesses. The supremacy of law, independence and transparency of all branches of government, and clear and fair laws and regulations that apply to all must be the starting point. The partnership between business and state is essential. The private sector possesses deep expertise, market knowledge, and discipline. We are team players committed to building a strong, competitive Ukraine. It is time to reassess the relationship between government and business to strengthen each other. This is crucial both for quality reconstruction of Ukraine and for shaping a robust stance for the state's future integration into the European community. Read more on this topic in my column in media New Voice (NV) - https://lnkd.in/dmHsecQk. Column in English - https://lnkd.in/dMiWVNEy

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An #Estonian problem has found a #Latvian solution During the 1990s and early 2000s, Estonia cherished the free market like almost no other country. Trade with no barriers, little effort to save outdated industries, privatisation wherever possible and inviting foreign investment were the cures for swift modernisation and growth. These policies turned out extremely successful for Estonia, resulting in faster growth and faster change than elsewhere in the region. #Monopoly and semi-monopoly sectors however taught Estonia the limits of a free market. Railways, municipal water systems and aviation industry, being monopoly or semi-monopoly set-ups produced less favourable results for consumers and the government. Estonia’s #railways were renationalised in 2007 due to disagreements between private owners regarding obligations and pricing. #Tallinn #water, majority owned by a foreign investors had been widely accused of excessive prices that were widely considered above market value, resulting in the City of Tallinn reacquiring a majority stake by 2021. A particular failure was privatisation of national airline Estonian Air. Owned partly by Danish conglomerate private owners kept the airline small and fed passengers into Scandinavian Airlines’ networks, whereas Estonia’s neighbouring country Latvia heavily invested into their national airline Air Baltic, growing Latvia’s capital into a regional hub. Tallinn airport lost its leading position in the 1990s and by the time Estonian government realised that the country was becoming final stop on a metro line in terms of connectivity, it decided to renationalise the airline in 2010. That time turned out very unfortunate for turning things around. Estonian Air sought to build more capacity of transit passengers, but its expansionary business turned out as a colossal failure, resulting in later bankruptcy due to EU’s state aid rules. A second national airline Nordica started running a number of days after Estonian Air’s demise, but its wings got stuck in the covid crisis and the airline focused on franchise flights instead regular services from Tallinn. However, with a recent announcement Latvia’s airBaltic will be offering direct services to 17 all-year round destinations from Tallinn from summer 2025 with another 14 seasonal routes. Estonia is no longer impossible to reach from major European cities. A semi-free market failure has been solved by a semi-free market solution with Latvia’s national airline offering better connectivity from Tallinn than Estonia’s own airlines used to do.

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More about railway rolling stock financing

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📢I had the pleasure, together with Maciej Cwikiewicz and Grzegorz C. in Puls Biznesu, of discussing the chances of Polish #AI companies to obtain funding from #VCs and, more broadly, to build a new #flywheel for our economy. According to a recent Dealroom.co's report, the AI Core startups received 45% of all VC investment in the CEE region. This is an opportunity we cannot miss!💥 My key theses: 📌At Movens Capital, we are investing in AI-enabled companies starting in 2019 based on our previous startup experience. They distinguish the #CEE region. By 2023, more than 1,000 AI/ML startups had emerged here, raising more than USD 4 billion in funding. 📌We see a great opportunity for Polish AI startups to succeed due to their unique technological talent. Building a sustainable #competitiveadvantage is key, as illustrated by ElevenLabs, but also examples from our portfolio, such as Talkie.ai or SKY ENGINE AI. 📌 The current stagnation in the VC sector has led to lower startup valuations, benefiting funds in executing transactions. In Poland, VC fund conditions will remain favorable in the coming years, but careful selection of AI companies is necessary, as most new entities have little chance of building lasting entry barriers. Thank you, Anna Bełcik, for taking on an important topic and inviting us to talk. 👉 https://lnkd.in/dxtGvvD7

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Proud of the MITS Capital team for doing such an impactful event. There has been much talk recently about Ukrainian defense tech influence in reshaping how the future wars will be fought. However, Ukraine’s strategic importance extends beyond just defense innovations. We are the only low cost producer of defense material in the free world. In the situation where the Western defense supply chains are dependant on China, there is just no other country that can help NATO not to loose the new global conflict, which is ongoing. Ukraine has the largest defense industrial base in whole Europe and has been historically the R&D center and components manufacturer for the soviet union. Moreover, we have critical minerals reserves estimated at 20+ trillion USD. This is exactly the reason why the war for Ukraine has always been innevitable. Whoever controls Ukraine has an immense leverage in the new WW3. Those Western leaders, who fail to recognize this now, will be the ones who will go down in history books as new Chamberlains. #ukrainewillwin

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Our Head of Communications and Partnerships, Olena Kuryacha, has seen how the Lviv logistics center PORT works from the inside 👏 ☝️ It was a working visit to exchange experiences with the Ukrainian Entrepreneurs Association. 👏 A valuable journey through the territory of a modern logistics center operating on ESG principles (environmental, social, and corporate governance). For example, the center preserved a natural lake during construction, even though filling it would have been cheaper. 💬 "We had the opportunity to see how a 4-story distribution center works, where most processes are automated, and manufacturing enterprises. Everybody especially liked our Ukrainian peanut butter producers." Our delegation spent an hour at this plant! It's crucial to see how things are done, and infrastructure is created because this is an experience you won't learn in universities. Once again, I was convinced of the strength of Ukrainian business. Everyone has ambitious export plans," Olena said. So, let's continue working for the development of the economy and exports 🇺🇦💪 Read Bureau of Investment Programs on Facebook 👉 https://lnkd.in/evrVDqdG

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Investment and Reconstruction: how can Ukraine attract foreign capital for recovery and future development? Yesterday, we delved into the Ukraine Recovery Conference at the event hosted by Kyiv International Economic Forum and Ukrainian Institute for the Future. In the lead-up to #URC2024, they joined forces with the British firm WH5 Consulting, with backing from Eurasia Group, to produce a comprehensive study that sheds light on Ukraine's investment opportunities. The study tapped into the insights of 1,407 business leaders from the US, UK, EU, Japan, and other economically powerful nations. Collectively, these companies boast an annual turnover exceeding $5 trillion and have up to $800 billion ready for potential investment in Ukraine. So, are these businesses keen to invest in our economy? Are they looking to partner with the Ukrainian private sector, and what hurdles might they face? Here are some of the key takeaways: ▪️ A significant 83% of respondents reckon that doing business with Ukraine is crucial for bolstering our economy—not as charity, but through joint large-scale projects or market entry. ▪️ The sectors that most attract investment are industry, transport, technology, strategic mineral extraction, and agriculture. ▪️ A major sticking point for foreign investors remains corruption and bribery. A substantial 39% of respondents see these issues as serious obstacles to doing business. Other barriers include protecting business rights, including property rights guarantees, ineffective regulatory policies, and the lack of efficient communication between the government and businesses. This study does a sterling job of highlighting the key issues and gives us a clear understanding of what needs to be tackled to bring investments into Ukraine. The views of potential investors are invaluable for shaping government policies and transforming the investment climate. I must emphasise: a country cannot thrive without a strong economy. We cannot afford to lose our resilience and live on credit, even considering the ongoing war. Thus, recovery and further economic development are the only constructive paths forward. Feel free to dive into the full study via the link in the comments.

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Glad to see that u.ventures (a VC fund backed by Ukraine-Moldova American Enterprise Fund) was the most active VC investor in Ukraine in H1 2024 according to Forbes Ukraine data! u.ventures made 8 investments in Ukrainian startups in H1 2024 and also two investments in Moldovan startups during that period. Among the already disclosed Ukrainian investments of u.ventures over H1 2024 are Esper Bionics , Competera Pricing Platform, Dynamiq, and a follow-on investment in OneNotary during a round led by a US VC firm, Jackson Square Ventures. As always, we are actively looking for highly promising tech companies with strong connections to Ukraine or Moldova (e.g. companies with R&D in the region) for investments from Horizon Capital’s growth fund, as well as early-stage startups with similar ties for investments from u.ventures. Andrew Sorohan Vasile Tofan Andrii Brodetskyi Link to a Forbes article in Ukrainian: https://lnkd.in/dYCTCM9M

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We have started constructing the second smart shelter CLUST SPACE for students in Ukraine. This time, it will be in Dnipro, specifically for the students of Oles Honchar Dnipro National University Following the successful launch of the first shelter in the capital, we have directed our efforts towards regions close to the war zone. The need for safe, educational spaces is not just pressing, it's urgent. This urgency is what led us to choose Dnipro as the next location, a city that has provided refuge to a large number of IDPs from Kharkiv, Donetsk, and Luhansk regions. The second CLUST SPACE in Dnipro will also follow the smart shelter concept, where every square meter has its function. Pavlo Peker from Peker&Partners developed the space's design project, with whom we cooperated during the construction of the first shelter. Of course, this space also meets all the requirements of the State Emergency Service—I thank the service representatives for their advice and cooperation. I am also grateful to all the partners who joined the project, including Freedom Holding Corp. We plan to complete the construction in the first half of 2025. The CLUST SPACE project is of great importance to me. I invest a lot of resources in personal learning and pay great attention to shaping my environment because I understand that successful and motivated people help me to develop. I strive to build smart shelters throughout Ukraine precisely because they allow students to study safely and gain knowledge even in these dangerous times and form a creative student community. I hope to gradually build a whole infrastructure for safe learning. In general, we plan to create a network of smart shelters for students throughout Ukraine, starting with those regions where the threat of shelling is most acute. We look forward to further cooperation with representatives of businesses, NGOs, and international organizations to implement these plans.

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Recently, The Ukrainian Review published an article that we co-authored with Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine, and my friend, a well-known translator and lecturer at the Kyiv-Mohyla Academy, Silvester Nosenko. The article analyses the geopolitical aspects of rebuilding Ukraine's infrastructure in the context of the Russian invasion. Restoration will require significant financial investments, estimated in the range of $349 billion to $1 trillion, depending on further damage. The main needs are focused on restoring transport and social infrastructure, including roads, bridges, railways and ports. We also highlight the replacement and modernisation of water supply systems (in particular, the use of fibreglass as a modern and reliable technology for the construction of water pipelines). The article also emphasises the need for international support and investment for the successful recovery of Ukraine's economy and the modernisation of its transport and logistics system, which will be an important factor for economic growth and integration with the European Union. Read and comment! Together we will win and rebuild the Ukrainian economy! 💪🇺🇦 Read the article: https://lnkd.in/dHQGVXEQ

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In December, the conference "Trade Finance in Ukraine: A Market Development Plan" will take place 👏 ☝️ The conference "Trade Finance in Ukraine: A Market Development Plan," organized by the Independent Association of Banks of Ukraine in collaboration with the Ukrainian Alliance for Trade Finance and Factoring, will be held online on December 5, 2024. ⚫ The European Bank for Reconstruction and Development (EBRD) and the International Finance Corporation (IFC) support the event, which will run from 10:00 AM to 12:30 PM. The conference's goal is to analyze key trade finance trends observed in 2024 and discuss prospects for the sector's further development. Experts will share their insights on anticipated changes in legislation and regulatory policies and outline practical steps businesses can take to address modern challenges. ▪️ Participants will hear from leading specialists who will highlight current trends and new opportunities in trade finance. The conference will also showcase practical solutions to support manufacturers and exporters, including new ideas, products, and approaches for engaging with clients. The main topics for discussion will include: ✔️ An overview of the Ukrainian trade finance and factoring market in 2024; ✔️ Key trends and development prospects for the sector; ✔️ Legislative initiatives and changes in regulatory policies; ✔️ Tools to support manufacturers and exporters. ✔️ This event will serve as a platform for constructive dialogue among businesses, financial institutions, and regulators, strengthening Ukraine's trade market position on the international stage. For more information and registration, please visit 👉https://lnkd.in/etifvw-J Read Bureau of Investment Programs on Facebook 👉 https://lnkd.in/evrVDqdG

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[𝟮𝟬/𝟱𝟬] 𝗗𝗶𝗳𝗳𝗲𝗿𝗲𝗻𝘁 𝗪𝗮𝘆𝘀 𝘁𝗼 𝗔𝘁𝘁𝗿𝗮𝗰𝘁 𝗙𝘂𝗻𝗱𝗶𝗻𝗴 𝗳𝗼𝗿 𝗬𝗼𝘂𝗿 𝗖𝗼𝗺𝗽𝗮𝗻𝘆 In a month, I will be a speaker in Warsaw at BelTech: Going Global 2.0, where I will discuss “Venture Winter” with my colleagues from the VC world (the conference link in the first comment). Attracting VC money in 2024 is more challenging than it was in 2021. However, there are still several ways to attract non-traditional VC funding. In this post, I want to share 5 methods to secure funding for your company, particularly if you’re struggling to attract VC money or prefer not to: 𝟭. 𝗬𝗼𝘂𝗿 𝗖𝗹𝗶𝗲𝗻𝘁𝘀 This is the most obvious and cost-effective method for securing funding, yet many companies hesitate to ask their clients for prepayments or long-term contracts. Large corporations, however, may find it advantageous to receive a 10-15% discount in exchange for prepaying for one or two years. While B2C companies sometimes prefer selling monthly subscriptions to maintain higher MRR, annual subscriptions can offer more upfront cash for development. Clients can significantly improve your cash flow, so don’t shy away from exploring this option. 𝟮. 𝗩𝗲𝗻𝘁𝘂𝗿𝗲 𝗗𝗲𝗯𝘁 Venture debt is often used alongside VC funding when you’ve raised only part of the necessary capital or wish to avoid diluting your ownership in the current round. Lenders typically charge higher interest rates compared to traditional debt. In some cases, venture debt providers may ask for additional rights, such as veto rights or even a board seat to protect their interests. 𝟯. 𝗥𝗲𝘃𝗲𝗻𝘂𝗲-𝗯𝗮𝘀𝗲𝗱 𝗙𝗶𝗻𝗮𝗻𝗰𝗶𝗻𝗴 This type of financing is ideal for companies with a subscription model. The concept is simple: you receive funding in exchange for a percentage of your monthly revenue. Each month you’ll transfer some percentage of your revenue to the lender. 𝟰. 𝗚𝗿𝗮𝗻𝘁𝘀 Many countries and organizations offer grants, especially if your project focuses on sectors like climate tech or energy. These grants can be a great source of non-dilutive funding. 𝟱. 𝗕𝗮𝗻𝗸𝘀 Banks are increasingly competing with fintech and VC players, leading to the creation of new products for startups and scale-ups. I recommend speaking with your bank about these offerings. For instance, some banks offer loans backed by Apple Store or Google Play accounts receivable as collateral. In addition to these options, you might also consider more exotic or risky ones like reaching out to wealthy friends, exploring crowdfunding, ICOs, or leveraging free products or services as alternatives to VC funding. In the current market, cash is king, so be open to different sources of capital, but always be mindful of how each option will impact your future growth and subsequent VC rounds.

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⚡ Financial instruments for business from state and commercial financial institutions of Poland and Ukraine were presented in Warsaw during the XIX International Forum "Ukrainian-Polish Business Days". Oleksandr Melnychenko, Acting Executive Director of UkraineInvest, told the participants about 🔹 prospects for significant investment in Ukraine during the full-scale invasion of russia 🔹 incentives available in Ukraine to attract international investors 🔹 step-by-step guide for investors with significant investments "Ukraine has developed and implemented special legislation to attract foreign direct investment. For example, the Law of Ukraine "On State Support of Investment Projects with Significant Investments in Ukraine" provides for state support of up to 30% of the volume of significant investments for relevant investment projects. A significant investment is defined as an investment of more than EUR 12 million. This law provides, among other things, for compensation for the costs of connecting engineering and transport networks, the right of first refusal to use a land plot, the provision of engineering and transport infrastructure construction at the expense of the state budget, etc.," says Oleksandr Melnychenko. The Forum was also attended by representatives of government agencies, business, local authorities, financial institutions, diplomats and experts from Poland and Ukraine. The event has traditionally become an epicentre for discussing challenges, opportunities and prospects for cooperation between Ukraine and Poland. The main objective is to facilitate a fruitful dialogue between business and government in Poland and Ukraine, to develop partnerships between the business communities of both countries, and to create transparent and favourable conditions for trade and investment cooperation and the future reconstruction of Ukraine. Poland is a major foreign investor in Ukraine. In 2021, Poland was among the top 10 countries in the world in terms of foreign direct investment in Ukraine - USD 227.9 million. Last year the amount of invested funds was USD 97.2 million. At present, there are about 660 Polish companies operating and continuing their activities in Ukraine. A significant number of Polish companies have expressed their desire to participate in the reconstruction and recovery of Ukraine after the ongoing war. To date, the PAIH Kyiv office has received about three thousand applications from Polish companies willing to participate in the rebuilding of the post-war Ukrainian economy, of which 60% are from small and medium-sized businesses. Association of Ukrainian Businesses in Poland EUCON Legal Group Embassy of Ukraine in the Republic of Poland Polish Investment and Trade Agency (PAIH) Business Centre Club

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