The Ukrainian IT Companies’ Expert Revenue Increased by 5% Despite the Full-Scale War

By the end of 2022, the digital technology and startup sector was the only export-oriented industry that continued to grow rapidly despite the economic downturn caused by the full-scale Russian invasion in Ukraine.

Over the year the country’s GDP has decreased by 30%, but the tech sector continues to generate critical export revenues which is the key element in rebuilding the Ukrainian economy overcoming the effects of the war. During the 12 months following the start of Russia’s full-scale invasion, Ukraine’s tech sector had generated $7.34 billion in export revenues, 5% more than the previous year ($7 billion in 2021).

Ukraine’s tech sector growth is facilitated by regular support from the United States Agency for International Development (USAID). Since the full-scale Russia’s invasion in Ukraine, USAID has provided nearly $1.2 million in direct assistance to the country’s tech industry – helping local IT companies generate $12.2 million in sales and attract new private sector investments worth $5.9 million and maintained jobs for the 285,000 specialists employed in the industry.

“USAID assistance was crucial for us. When we – just as everyone in Ukraine – didn’t know what to do next, USAID provided educational programs for the team, shared necessary recommendations and contacts. USAID even helps us with our own data center, providing special equipment. But the core thing – USAID helped us realize that we were not alone in the darkest times.” — Pavlo Zaitsev, from the East Ukrainian IT Cluster.

Thanks to USAID grants, Ukrainian IT companies moved their offices from the frontline to safer regions inside the country, and their provided tech hubs were with Starlink Internet terminals and database servers, which allowed to continue operating even during the Russian shelling of Ukraine’s energy infrastructure.

The U.S. Agency for International Development (USAID) has partnered with Ukraine since 1992, supporting Ukraine and advance Ukraine’s long-term development as an independent, sovereign, democratic, and prosperous society. Since the start of Russia’s full-scale war, USAID is providing $22.9 billion in direct budget support, $15.5 billion of which has already been disbursed, $1.4 billion in humanitarian assistance, and more than $870 million in development assistance.