Only 2% of entrepreneurs agreed to work under conditions of Russian occupants in Kherson and Zaporizhzhia oblast

херсонская область

Only 4 thousand subjects of entrepreneurial activity on the territory of Kherson and Zaporizhzhia oblasts occupied by Russia registered in Russian occupation «administrations». It means just a minor share of Ukrainian businessmen agreed to work under rules established by occupants. It is approximately 2% of physical persons-entrepreneurs and legal entities from the total number of business entities registered in these regions before the Russian invasion, as the Center for Journalist Investigations reports.

At first, occupants required entrepreneurs to register with occupation tax authorities during July. Then, they prolonged deadline until August 1. But just a few businessmen met this requirement.

In accordance with the data of the State Tax Service of Ukraine, there were 77 984 subjects of entrepreneurial activity in Kherson oblast, as of December 1, 2021. Almost 123,5 thousand entrepreneurs, institutions and organizations were registered in Zaporizhzhia oblast, as of August 1, 2020.

Besides re-registering at occupation administrations, Russia occupants require entrepreneurs to receive Russian passports and switch to Russian Rubles.

«Majority of entrepreneurs try to sell out all their goods, close their shops and evacuate to the territory controlled by Ukraine. Rubles are rarely accepted as buyers do not have them. They are accepted by entrepreneurs who buy goods in Crimea. Local municipal enterprises accept only Hryvnia. They pay salaries in Hryvnia», as Kakhovka businessmen tell under conditions of anonymity.

Some residents of Kakhovka and Nova Kakhovka report that some local entrepreneurs refuse to accept Rubles. Even recipients of Russian «charitable assistance» paid in Rubles try to exchange them immediately into Ukrainian currency.

As the Center for Journalist Investigations informed, «head of Kakhovka district» Volodymyr Leontjev issued «decree» on April 28 about obligatory registration of all subjects of business activity working on the temporary occupied territory.

All businessmen were ordered to receive «temporary permits» before May 8. Then, deadline was moved twice – until May 15 and until the end of May. Local collaborators started «confiscating» the property of «violators» and close their shops. But these repressions failed to force businessmen to cooperate with occupants.

Material is prepared by non-profit «Information press center» within IWPR project under the support of the European Union and the Royal Norwegian Ministry of Foreign Affairs.