THIS WEEK IN UKRAINE
30 January 2025
EU Extends Sanctions Against Russia Until July 2025
The EU has extended economic sanctions against Russia for another six months, citing ongoing destabilization in Ukraine. Initially imposed in 2014 and expanded since 2022, the sanctions target trade, finance, energy, and technology sectors, including an oil embargo and SWIFT restrictions. Despite Hungary's resistance, the EU secured guarantees for its energy security, ensuring unanimous approval. The sanctions continue to limit Moscow's revenue for war financing, with further measures possible if needed.
Ukraine’s Defense Ministry Launches FPV Drone Production
Ukraine’s Ministry of Defense has begun licensed production of FPV drones at a state-owned enterprise under a pilot project initiated in December 2024. The program, coordinated by the Defense Innovation Directorate, enables the production of standardized drones for Ukraine’s Armed Forces. This initiative enhances cost efficiency, fosters competition, and paves the way for state enterprises to participate in procurement tenders. Plans are underway to scale production and collaborate with private drone developers to expand manufacturing capabilities.
Ukrainian Defense Startup Frontline Raises New Investment
Ukrainian defense-tech startup Frontline, specializing in robotic systems and drones, has received an investment from Nezlamni, a fund founded by a Ukrainian ride-hailing service Uklon’s co-founders. The undisclosed amount falls within Nezlamni’s standard check size of $100,000–$400,000 and will accelerate product development. Frontline’s key innovations include the Zoom reconnaissance drone and Buria grenade launcher turret. In December, the startup also raised $150,000 from Angel One and $100,000 from Startup Wise Guys, strengthening its role in Ukraine’s defense technology sector.
Key Legislative Updates for Businesses and Government
Recent legislative changes in Ukraine include new sanctions against Russian individuals and entities, 100% mobilization exemptions for healthcare workers and prosecutors, and updated military conscription rules for students and single parents. A new law on pharmaceutical labeling enhances regulation, while the National Bank introduced stricter oversight on payment infrastructure. Pending bills propose simplified agricultural procurement, EU-aligned market surveillance, and updated fishery regulations to meet European standards.
Ukraine Plans to Use AI for Job Placement
Ukraine’s Ministry of Economy plans to integrate AI technology into job placement services to help unemployed citizens find work and assist businesses in recruitment. Based on TBI research, the initiative targets youth, women, displaced persons, and those under temporary protection abroad. Key priorities include AI-driven job matching, reducing barriers for women, and reskilling workers. In 2024, 100,000 Ukrainians completed retraining programs, and a job search app was launched. The government is also funding programs to help women enter male-dominated professions.
Ukraine and Germany Strengthen Support for Small Businesses
Ukraine and Germany have renewed the "Partnership in Business with Germany" program to support small and medium-sized enterprises (SMEs) for another three years. Signed by Ukraine's Economy Minister Yuliya Svyrydenko and German Ambassador Martin Jäger, the initiative facilitates business networking, training, and international market access. Organized by Ukraine's Ministry of Economy and the German Agency for International Cooperation (GIZ), the program will offer Ukrainian entrepreneurs online and in-person training in Germany, company visits, and direct business connections. Over 1,900 Ukrainian managers have benefited from this collaboration, fostering export growth and post-war recovery efforts.