The uncertainty of a war zone in Ukraine has led companies both large and small to push the pause button on their operations. While some are shutting their doors indefinitely, others have looked for ways to continue by relocating employees or modifying work schedules and projects.
The long-term effects for local and global economies remain unknown.
In the auto industry,
Porsche shut down some of its manufacturing lines in Europe because of supply chain disruptions; the change affects the production of models including the 911, 718, Macan, Panamera, Cayenne, and Taycan. The company cited a shortage in wiring harnesses as one of the reasons behind its move, as
7 percent of the world’s auto harnesses are made in Ukraine.
Porsche also donated
$1.1 million to help refugees and children in Ukraine, and also stopped delivering autos to Russia. Audi and BMW also
paused production, while Mercedes-Benz reduced its output levels.
Cornelius Fichtner, president of Silverado, California-based
OSP International LLC, a project management training company, notes that some of the company’s full- and part-time team members reside in Ukraine.
“We are offering Ukrainian team members—and others affected—subscription-based counseling services, free of charge,” he told The Epoch Times. The company also is granting personal time off to employees as needed during the conflict.
While some are taking time away, others are looking to carry on, Fichtner added.
“Many people want to keep working to get their minds off the conflict.”
Exoft, a Lviv, Ukraine-based software company, saw 10 percent of its team relocate to elsewhere in Europe, where they are continuing their work.
“When the war started, we immediately warned our customers about the situation,” Bohuslava Zhyvko, head of marketing at Exoft, told The Epoch Times. “For our employees, new rules were introduced, taking into account the new realities.”
The company introduced flexible schedules and announced it would allow employees to work from anywhere, at any time, with staying safe listed as its Rule No. 1.
Dmytro Serheeiv, a professional tax specialist and co-owner of
PDFLiner, which helps U.S. citizens file taxes and fill out other forms, moved to the United States from Ukraine many years ago. About half of his firm’s employees are Ukraine-based and work remotely from Kyiv, Kharkiv, and Odesa.
“Within the first days of the war, my company transferred full monthly salaries and bonus funds to our guys in Ukraine to help them relocate timely and safely,” Serheeiv told The Epoch Times. The company also implemented flexible working hours with a guarantee of full wages and weekly payments during the coming months.
“Today, all our Ukrainian employees and their families are safe in Poland and receive due help from the local government.”
In terms of land area, Ukraine is the
second-largest nation in Europe, placing just above France and well behind Russia, which has an area of more than 6.6 million square miles, compared to Ukraine’s 233,000 square miles. Often called the “breadbasket of Europe,” around
32 million hectares (79 million acres) of Ukraine’s land is typically used every year for growing crops. Its main exports are corn, seed oils, iron ore, and wheat. It
produces 18 percent of the world’s sunflower seed and cottonseed oils, along with 13 percent of the world’s corn, 12 percent of its barley consumption, and 8 percent of the world’s wheat. In 2020, Ukraine was the world’s
biggest exporter of seed oils.
The conflict calls into questions related to this year’s production levels, as it isn’t clear if it will be possible to harvest crops that are currently growing.
Uncertainty surrounds the coming growing season too, depending on whether new crops can be planted and if livestock production can continue. If the war persists and prevents workers from continuing farm operations, regions could suffer food shortages because of supply chain disruptions.
Amid the war,
wheat prices have risen, although future food shortages could be reduced or avoided if farmers elsewhere can offset the losses coming from Ukraine and Russia. If wheat exports from Ukraine and Russia drop, operations in other regions of the world that typically produce corn could switch to wheat to increase the supply. Consumers’ choices may shift too, with some opting for lower-priced and more readily available products, such as rice or potatoes.
Verallia, a French glass bottle maker, announced a temporary halt to production at its site in Zorya, Ukraine, to prioritize the well-being of its employees and protect the facility.
“We have, for the time being, decided to stop production—in accordance with our crisis plans—in an orderly and controlled manner in order to protect our employees,” general manager
Dirk Bissel stated.
Verallia produces glass packaging for food and beverage items and has 32 glass plants in 11 countries. Another glass manufacturer,
Vetropack, had its factory severely damaged by military activity in early March. No employees were injured; the plant closed indefinitely.
