Ukraine's Economy on the Path to Recovery: Challenges, Investments, and Energy – A Conversation with Aleksandr Katsuba

In the context of war and economic instability, Ukraine faces numerous challenges but also new growth opportunities. In this interview, IT investor and entrepreneur Aleksandr Katsuba discusses economic trends, investment prospects, business challenges, and the future of Ukraine's energy sector.

In the context of war and economic instability, Ukraine faces numerous challenges, but it also opens up new opportunities for growth. In this interview, Aleksandr Katsuba, an IT investor and entrepreneur, discusses current economic trends, investment prospects, business challenges, and the future of the country's energy sector.

Aleksandr, how do you assess the current state of Ukraine's economy in the face of war?

Aleksandr Katsuba:

Ukraine's economy is going through a severe test right now. The war has put immense pressure on all key sectors, from industry to agriculture. As an entrepreneur, I see how difficult it is to adapt to new conditions, especially when the supply of raw materials and energy resources becomes unpredictable.

In 2023, when our gas processing plants (UCPG) were threatened by Shahed drones, we had to rapidly shift our focus and quickly build concrete shelters for personnel at every site, as well as significantly expand our reservoir fleet. It was an extremely stressful period, but we managed to hold on, and now we are producing over 1 million cubic meters of gas every month.

How has the role of small and medium-sized businesses changed in this new reality?

Aleksandr Katsuba:

Small and medium-sized businesses in Ukraine have always been resilient, but today their importance has become even more critical. I often talk to entrepreneurs from various regions, and their stories inspire me. They operate under conditions where each day could be the last for their business. Yet, they find ways to keep going.

For example, I met an entrepreneur in Lviv who previously manufactured furniture. When the war started, demand for his products dropped significantly, so he decided to adapt by shifting to a new type of production. After learning new technologies and restructuring his processes, he was able to save his business. This allowed him to continue paying wages to his employees, paying taxes, and even supporting the army and volunteers through regular donations.

What investment opportunities do you see in Ukraine today?

Aleksandr Katsuba:

Investing in Ukraine right now is challenging, but I believe that great opportunities are opening up at this very moment. Of course, the risks are high, but crises often bring new perspectives for development. For me, this is especially evident in energy and infrastructure.

Take renewable energy, for example. I have always believed in its future, but the war has pushed us toward even greater interest in this area. In our company, we started exploring the possibility of installing solar panels in areas where it previously seemed impractical due to high investment costs. However, with traditional energy sources under threat, the interest in alternatives is growing.

You mentioned high risks. How do you think investors assess these risks, and what can help mitigate them?

Aleksandr Katsuba:

Risks certainly exist, and each investor evaluates them differently. But I am convinced that having a clear strategy, supported by the state, can significantly reduce these risks. For example, in our projects, we always consider several development scenarios, including the worst-case ones. This allows us to be prepared for any challenges.

From personal experience, I can say that international partners often view Ukraine with caution, but they also see potential. One of our foreign partners, with whom we have been working for several years, recently decided to expand its presence in Ukraine despite the war. They recognize that our country has great potential, especially in the energy and IT sectors.

Could you elaborate on the state of Ukraine's energy sector and its prospects?

Aleksandr Katsuba:

The energy sector has always been critical to Ukraine's economy, and now, during the war, its role has become even more important. We see power plants being destroyed and how difficult it is to restore networks after shelling. But this sector could become the foundation for rebuilding the country after the war.

In 2023, when our gas fields came under threat due to military actions, we actively began developing new technologies to increase extraction efficiency. This allowed us not only to maintain production but also to ensure stable gas supplies to regions in need. The future of energy lies in renewable sources that can replace traditional ones. We are already seeing investments in solar and wind energy beginning to pay off.

What do you think are the main challenges facing Ukrainian businesses today?

Aleksandr Katsuba:

Ukrainian businesses have always been adaptive, but today they are undergoing the toughest trials. Companies must be ready for unpredictable changes, rapid relocations, or even evacuations. For example, in our company, we created a crisis center that monitors the situation in real-time and is ready for quick response.

How has your approach to risk and crisis management changed during the war?

Aleksandr Katsuba:

Risk has become part of our everyday life. If we used to be able to plan years ahead, now we have to be ready for changes literally every day. This has been a real challenge, but it has also provided valuable experience in crisis management.

How has the war affected your vision of the future of Ukraine’s IT sector?

Aleksandr Katsuba:

Ukraine's IT sector has always been strong, but the war has demonstrated its resilience and potential even more. Ukrainian IT professionals have become some of the most sought-after in the global market, opening vast opportunities for the growth of this industry.

We are now seeing how Ukrainian IT companies are adapting to new conditions, expanding their influence in international markets, and implementing innovative solutions. For example, one of our IT companies was able to open new offices in Europe and attract clients from regions that were not previously considered promising. This shows that even in times of crisis, Ukraine's IT sector can not only survive but thrive.

Do you see prospects for cooperation between Ukrainian and international companies during the war?

Aleksandr Katsuba:

Absolutely, cooperation between Ukrainian and international companies has tremendous potential, especially during the war. International companies understand that Ukraine is not only a country with vast resources but also with highly qualified specialists.

From my experience, when we started working with a major European energy company, there was initial skepticism on their part regarding investments in Ukraine. However, after several successful projects, they realized that Ukraine can offer competitive solutions even under difficult conditions. This strengthened our partnership and opened new opportunities for both sides.

What, in your opinion, needs to be done to support Ukrainian businesses during these challenging times?

Aleksandr Katsuba:

Right now, businesses need real support, and it's not just about tax breaks or loans. Businesses need to feel that the state truly stands behind them. Entrepreneurs need to know they can count on stable rules, the protection of their interests, and the swift resolution of issues. From my experience, one company faced non-transparent decisions by local authorities that threatened its existence. At such moments, it's more important than ever for the state to intervene quickly and decisively.

International support also goes beyond loans. It's about partnerships that help businesses enter new markets and expand their capabilities. We need to make the most of every opportunity to attract foreign investments and technologies. And, of course, we must support entrepreneurs who are willing to take risks and create new products and services even in these difficult times. Now, more than ever, it's important to be bold and creative.

(Devdiscourse's journalists were not involved in the production of this article. The facts and opinions appearing in the article do not reflect the views of Devdiscourse and Devdiscourse does not claim any responsibility for the same.)