Multinationals in Ukraine fear cyberattacks

Major US and European companies operating in Ukraine said on Friday that they have contingency plans ready in the event of a Russian invasion, but have so far not ordered the reassignment of employees.

Even with Western leaders warning that Russian President Vladimir Putin may order an attack on Ukraine, most executives at multinational corporations do not believe Russian troops will actually follow through with a ground invasion, said Anna Derevyanko, deputy director of the European Business Association.

“Companies have implemented contingency plans, but they don’t believe something terrible is going to happen,” said Derevyanko, whose membership includes Nestlé, BASF, ArcelorMittal, Bayer and more than 1,000 European companies that employ more than 2 million people in Ukraine.

“If you ask business people, they believe that a physical invasion is a low-risk scenario,” he added. “There is no feeling of panic.”

The prospect of cyber attacks, on the other hand, is more worrisome. Government websites, state-owned banks and parts of the country’s infrastructure have all been hacked by hackers, which Ukrainians believe to be Russians, trying to disable computers and steal data. European and American companies in Ukraine see cyberattacks as one of the top threats to tackle and have mobilized to strengthen cybersecurity, Derevyanko said.

The IT Ukraine Association, which includes local and international tech companies such as Sigma Software and video game giant Ubisoft, said the industry’s presence in the country has grown steadily since Russia’s devastating invasion of Crimea in 2014.

Companies in the technology sector, currently valued at US$6.8 billion (R$35 billion), have plans to ensure the safety of their employees in the event of “emergencies” as part of their business strategy, the association said in an announcement.

“Ukraine’s armed forces have built up strength, gained combat experience and are ready to defend the country and its people,” the statement continued. Tech companies’ response plans, meanwhile, “aim to protect talent and the continuity of their business processes,” he said.

More than 90% of tech firms surveyed this month rated the risk of an escalation of the conflict as low to medium, the association added, noting that none had prepared for a full relocation.

The American Chamber of Commerce in Ukraine said its 633 members, which include 3M, Toyota and Citibank, continued to do business but had contingency plans to continue working in an emergency.

Most member companies made their plans a long time ago, but continue to update and revise them, said Andy Hunder, president of the association.

Derevyanko of the European Business Association said Ukraine is counting on continued foreign investment to help keep the economy stable. There are multinationals located across the country in agribusiness, pharmaceuticals, technology and logistics.

Ukraine’s economy has only begun to recover in recent years from a debilitating blow after Moscow annexed Crimea in 2014 and pro-Russian rebels seized parts of Ukraine’s eastern Donbass region. Since then, Western allies have seeded Ukraine and companies operating there with more than $48 billion in bilateral and multilateral economic support.

This week, the United States pledged to strengthen Ukraine’s economy, following a statement by the Group of 7 industrialized countries that pledged the same.

“For now, companies are saying they plan to continue working as usual,” Derevyanko said. But the situation could still get complicated, especially if the main ports and airports are blocked, hurting exports and dealing another blow to the economy.