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Reuters: Ukrainian businesses expand westward in Central Europe

Ukrainian entrepreneurs establish successful businesses in Poland and neighboring countries, shifting focus from refugee to local customer base.

byYuri Zoria

07/01/2025

2 minute read

ukrainian businesses expand westward central europe lviv croissants café prague czechia palladiumprahacz lviv-croissants_66fd5d2434e6d entrepreneurs establish successful poland neighboring countries shifting focus refugee local customer base established expanded operations following russia's

Lviv Croissants café in Prague, Czechia. Photo credit: palladiumpraha.cz

Reuters: Ukrainian businesses expand westward in Central Europe

Ukrainian businesses that established or expanded operations in Central Europe following Russia’s 2022 invasion are evolving their strategy, Reuters reports. These companies are now shifting focus from refugee customers to local markets while planning further westward expansion.

As the all-out Russo-Ukrainian war approaches the close of its third year, millions of Ukrainians have sought refuge in the EU, with Poland hosting a significant number of them. Ukraine’s Economy Minister Yulia Svyrydenko told Reuters in November that despite economic growth in 2023 and projected expansion in 2024, the country’s economy remains at only 78% of its pre-invasion size.

According to Polish business associations and economists, Ukrainians established one in ten new businesses in Poland during 2024, where the Ukrainian population has grown to over 1.5 million due to the war.

Lviv Croissants exemplifies this expansion trend.

“While the Ukrainian refugee community in Europe is significant, relying solely on this customer base is not a sustainable long-term strategy,” founder Andrii Halytskyi told Reuters. The company operates 12 shops in Poland and opened its first Czech location in October.

The !FEST restaurant group’s Piana Vyshnia (Drunken Cherry) chain has expanded to 15 locations in Poland and nine in other Baltic and eastern European countries. Founder Andrii Khudo told Reuters the company plans to enter Germany, Switzerland, and France in 2025, while relaunching in London.

Other successful expansions include:

Chornomorka (Czarnomorka) restaurant chain with locations in Poland, Bratislava, and Vienna
Aroma Kava coffee chain’s growth to 10 Polish locations
Three Bears’ acquisition of Polish frozen products company Nordis
MEGOGO’s digital entertainment services expansion into Poland and Romania

Reuters notes that March 2024 Deloitte report estimated that Ukrainian refugees would contribute up to 1.1% to Poland’s GDP in 2023, potentially reaching 1.35% in the longer term.

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