Ukrainian Businesses Expand Focus in Central Europe

By Michael Kahn and Anna Koper

PRAGUE/WARSAW (Reuters) – After Russia’s invasion in 2022, Ukrainian businesses in central Europe are shifting from focusing solely on refugees to targeting local customers as they establish themselves, with some eyeing expansion further west.

As war closed off opportunities at home and in the east, Ukrainian-owned businesses emerged in nearby countries, initially catering to displaced compatriots with food, drink, and services.

In Poland, the Ukrainian population surged to over 1.5 million due to the war, with Ukrainians opening every tenth new business in 2024, according to Polish business associations and economists.

Andrii Halytskyi’s Lviv Croissants has 12 shops in Poland since launching two years ago, and opened its first Czech outlet in October as part of a strategy to expand westward.

Halytskyi noted that relying solely on the Ukrainian refugee community is unsustainable long-term. Many Ukrainian businesses view Poland as a bridge to broader EU markets, seeking to understand EU realities and regulations.

Andriy Khudo’s Piana Vyshnia bar chain targets local customers while also aspiring for further expansion in western Europe.

Although Ukraine’s economy grew in 2023, it remains at 78% of its pre-war size, prompting many businesses to explore opportunities abroad, positively impacting labor markets in receiving countries.

A Deloitte report suggests that Ukrainian refugees could add up to 1.35% to Poland’s GDP long-term, stimulating economic growth and labor supply.

Ukrainian restaurateur Olga Kopylova, whose brand Chornomorka now spans several countries, and companies like Aroma Kava and Three Bears have also successfully entered the Polish market.

MEGOGO, a digital entertainment provider, found Poland to be a crucial market, while Lviv Croissants catered to a diverse clientele in Prague, sharing a sense of home for many Ukrainians.