Analysis of the Socio-Economic Condition of De-Occupied Communities: Kyiv, Mykolaiv, Kharkiv Regions

Research context. Since the onset of the full-scale invasion, the total value of direct damage to residential and non-residential real estate, infrastructure, vehicles, and inventories has surpassed $157 billion. Another concern is the shortage of qualified personnel, particularly medical professionals, teachers, and social workers, caused by migration. The relocation of businesses from the de-occupied frontier territories has caused a decline in community income and an increase in regional inequality. As of April 2024, nearly 19,000 companies had relocated from Ukraine since February 2022.

The reconstruction of de-occupied communities requires not only technical restoration, but also a comprehensive approach to creating an environment in which people want and are able to live. In this sense, it is necessary to analyse the socio-economic profile of de-occupied communities to identify their needs, capabilities and constraints — data that are crucial for developing a systematic and multi-level reconstruction algorithm.

Focus and Methodology of Analysis

The study covers demographic trends, the state of public services, infrastructure damage and losses, financial capacity, economic development, and the scale of community cooperation. 

The study timeline was from January to April 2025.

The three-stage study included:

• The first stage involved collecting datasets in the de-occupied communities of Kyiv, Mykolaiv, and Kharkiv regions according to six groups of indicators: socio-demographic, infrastructure, financial, migration, cooperation, and public service delivery.
• In the second stage, the financial capacity of the de-occupied territorial communities was estimated based on the results of the corresponding financial indicators for 2021–2024.
• The third stage of the study involved conducting semi-structured, in-depth interviews with the heads of territorial communities and military administrations in settlements.

According to the Study, the Key Problems in the Dynamics of Community Recovery Are:

1. A complex demographic profile and increasing migration rates. At the time of de-occupation, the population in the territorial communities was 44% lower than it had been at the beginning of 2022. The population structure of the communities is dominated by people over 60 years of age, which affects the labour potential and places an additional burden on the social welfare system.
2. Problems with the accessibility of public services. Most communities were able to resume the delivery of public services after de-occupation, particularly by ensuring the launch of mobile administrative service centres, social service centres, and outpatient clinics. Nevertheless, de-occupied communities still experience problems with the accessibility of social services.
3. Unstable security climate. Significant areas of mined territories and contamination with explosive objects. The most dangerous situation is in communities in the Kharkiv region, where at least 332 high-risk and mined areas have been confirmed.
4. Damage and loss of infrastructure due to destruction. At the end of 2024, 41% of infrastructure assets were recorded as destroyed in the de-occupied communities of the Kharkiv region, 15.3% in the Mykolaiv region, and 10.6% in the Kyiv region. The most challenging situation is in the frontline communities of the Kharkiv region, where more than two-thirds of infrastructure facilities have been ruined, and the population is being evacuated.
5. Disparity in access to financial resources between communities. In 2024, 27 communities are classified as having critical or low capacity, of which 15 are located in the Kharkiv region, five in the Kyiv region, and seven in the Mykolaiv region. The Kyiv region has the largest share of de-occupied communities with high and medium capacity. This reflects inequalities between communities.
6. Decline in economic growth. A significant amount of production capacity was destroyed or seriously damaged. One of the problems remains the lack of labour resources. In 2024, compared to 2021, the number of employees in companies in the de-occupied communities of the Kyiv region increased by 12.6%. In contrast, in the de-occupied communities of the Mykolaiv and Kharkiv regions, the decrease was 12.7% and 26.8% respectively.

In response to the identified problems and needs, the Agency for Legislative Initiatives has designed recommendations, the implementation of which is expected to contribute to the recovery and sustainable growth of the de-occupied communities. For more details on the situation of the de-occupied communities in the Kyiv, Mykolaiv, and Kharkiv regions, see the new study by the Agency for Legislative Initiatives.

The study was conducted within the framework of the project “Parliamentary Accountability of the Security Sector in Ukraine” (PASS Ukraine), which the Agency implements together with the Parliamentary Centre, in cooperation with the Verkhovna Rada of Ukraine, and with the support of Canada’s Foreign Policy — Global Affairs Canada as part of the Peacebuilding Program and stability(PSOPs).