Will Kyiv Remain Ukraine's Main Business Centre?

For many years, Kyiv has been the economic heart of Ukraine, and it continues to hold this position today. The capital is home to the headquarters of banks, insurance and financial companies, as well as leading industrial and service businesses. Kyiv's educational infrastructure, numerous universities and hundreds of thousands of students continue to provide a substantial pool of skilled professionals. Every year, more Kyiv-based companies appear in the ranking of Ukraine's 210 largest companies: in 2023, there were 124 such companies (59% of the total), while in 2025, the number increased to 129 (61.4%). In other words, approximately two-thirds of the country's most significant organisations are based in the capital.

At the same time, the war has significantly changed how businesses operate. At the beginning of the full-scale invasion, many companies relocated to safer regions. Some of them subsequently returned to the capital.

According to the state register, Kyiv accounted for the largest number of business relocations in Ukraine, with more than 12,500 companies leaving the city, representing approximately 30% of all relocations. At the same time, the capital remains the leading destination for relocating businesses: almost 11,800 companies, or 28%, transferred their registrations to Kyiv. Looking specifically at Kyiv and Kyiv Oblast, the statistics show that 779 companies moved from the city to the surrounding region, while 663 companies relocated in the opposite direction, from the oblast to the capital.

According to official data, companies in wholesale trade accounted for the largest share of relocations (31.1%), followed by construction (6%) and real estate (5.5%). At the same time, it is clear that entrepreneurs choose Kyiv when access to customers, partners and financial resources is crucial. Businesses registered in other regions also relocate their registrations here when they aim to operate in the nationwide market.

According to estimates by Kyiv real estate executives, less than half of the city's commercial premises are currently occupied. Some businesses that previously relocated from frontline regions have indeed remained in Kyiv, but many companies continue to consider other locations due to security and operational risks. There are also challenges related to urban infrastructure: traffic in the capital is often congested, and during air raid alerts, public transport services are suspended because bridges connecting the two banks of the Dnipro are closed. Therefore, although people are gradually returning to the capital, business activity is recovering more slowly.

Since the beginning of the full-scale war, every sector of Kyiv's business community has been forced to adapt rapidly. A significant number of companies have introduced hybrid and remote working arrangements, accelerated digitalisation and automated their services. Today, practically all government administrative procedures, banking transactions and document management processes can be carried out online. Electronic signatures, government portals, online banking and other digital tools have become part of our everyday lives. This has significantly accelerated business processes and reduced the previous dependence on physical offices.

New formats of coworking spaces and on-demand offices are emerging across the city, while the IT industry continues to expand its capabilities. Kyiv remains one of Ukraine's leading development centres in artificial intelligence, drones and cybersecurity. Government initiatives supporting small businesses, such as the Affordable Loans 5–7–9% programme, also play an important role. Meanwhile, the increasing digitalisation of financial services and the expansion of grant programmes are lowering barriers to entrepreneurship and startup development.

Kyiv's advantages as a business centre undoubtedly include its convenient geographical location, well-developed logistics networks, concentration of business infrastructure and established demand for goods and services.

Business activity is also supported by a developed IT sector, modern telecommunications infrastructure and a strong service industry. Kyiv's office rental market not only maintains its leading position but is also showing renewed price growth: the average rental rate in the capital increased by 30% over the past year.

Thus, despite the war, Kyiv remains the country's main business hub. Although some companies have chosen to operate outside the capital, many entrepreneurs continue investing in business development in Kyiv and building long-term strategies here.

Despite its obvious advantages, entrepreneurs in Kyiv also face significant challenges. The first is intense competition, market saturation and high rental costs. The large number of companies in every sector makes it increasingly difficult to stand out, while competition for customers has become more intense. Higher operating costs in Kyiv are forcing some entrepreneurs to look for ways to optimise expenses, such as locating offices in the suburbs or making more flexible use of workspace.

Another important factor is security. On the one hand, Kyiv's strong defensive capabilities provide businesses with a relative degree of operational security, even amid heightened risks. On the other hand, entrepreneurs in the capital suffer significant economic losses from destruction — last year alone, a quarter of Kyiv's warehouses were rendered unusable. As a result, businesses need to remain mobile and flexible, developing contingency plans, diversifying suppliers and exploring alternative markets.

Despite all the challenges posed by the war, Kyiv remains a key centre for business development. I am confident that after the war ends, a significant share of investment opportunities will emerge here, and Kyiv will continue to play a crucial role in Ukraine's economy while becoming one of the main centres of large-scale reconstruction.

Of course, modernising and restoring energy networks and housing, transitioning to renewable energy and introducing advanced technologies will require substantial investment. It is clear that after the war, Kyiv will need significant capital investment, particularly in education, culture and infrastructure, creating additional momentum for economic growth. A considerable number of projects will be connected to the defence industry and technological solutions, as these areas require new business models and financial products.

The years of war have demonstrated that Ukrainian businesses can adapt remarkably quickly, even under extreme conditions. Entrepreneurs are finding creative solutions, from operating digitally to integrating artificial intelligence and robotics into production.

I am confident that our capital will remain a place where businesses can be established, developed and scaled, helping shape the economy of the future. Kyiv is and will remain the country's main business hub, bringing together resources, innovation and opportunities for business.

Translation into English was created with the help of artificial intelligence.