The Ukrainian Parliament voted to accept President Poroshenko’s degree on Martial Law on the 26th of November. The law is in effect in 10 Ukrainian regions, all of which are along the Russian border. The regions are Vinnytsia, Luhansk, Kharkiv, Sumy, Odessa, Mykolayiv, Donetsk, Kherson, Kharkiv, Chernihiv, and Zaporizhia. The term of the martial law is currently limited to 30 days, so it is expected to end on the 26th of December.
The martial law gives some extraordinary rights to the Ukranian government to limit citizens’ and businesses’ rights, but currently no limitations have been placed. President Poroshenko has communicated that no such measures will be taken except in the case of further military aggression. The Ukrainian Ministry of Economy has also confirmed that currently no limitations on economic activity are planned. The Central Bank of Ukraine has declared that the Ukrainian banking sector is currently liquid, and no exceptional measures will be taken in the monetary or exchange markets.
The IMF has also stated that the martial law will not prompt any changes to IMF cooperation or the credit program with Ukraine.
As our stakeholders and readers can see from this information, currently the martial law’s direct effect on business is minimal. These recent developments will likely be reflected in foreign businesses’ investment plans for the coming year.
