The Economic Security Council of Ukraine is an institution established to identify and counter internal and external threats to Ukraine's economic security.
The military actions of the Russian Federation have a complex large-scale impact on the economy of Ukraine. Therefore, the approach to counteracting this impact should also be complex. Ukraine's economic security is one of the key spheres that the Russian Federation would like to destroy.
At the same time, the economic situation in the Russian Federation has a direct impact on the military potential of the aggressor state. Countering the aggression of the Russian Federation should cover both the strengthening of the defense capability of the Ukrainian army and include a wide range of measures to suppress the economic well-being of the enemy. Attracting assistance from foreign states and institutions is a necessary component of this approach.
The Economic Security Council of Ukraine works in the following areas:
- ESCU raises funds in support of the special forces of the Armed Forces of Ukraine and supplies them with weapons, equipment, medical equipment, and tactical communications;
- ESCU works with external donors and civil-military administrations and collects humanitarian aid for the population;
- Together with Ukrainian and foreign state institutions, ESCU searches for assets belonging to beneficiaries from the Russian Federation or countries that support the armed aggression of the Russian Federation in Ukraine, makes a database of such assets, and helps prepare them for seizure.
- ESCU conducts information campaigns abroad to highlight Russia's war crimes, the consequences of Russia's armed aggression against Ukraine in the economic, political, and humanitarian dimensions.
In addition, as the Russian Federation builds up its military capabilities with funds from the state budget, the Economic Security Council of Ukraine is focusing on pressure on companies that continue to operate in Russia. In particular, some international companies continue to work in the Russian Federation despite sanctions introduced by the US and the EU, or through a network of shell companies.
The Economic Security Council of Ukraine organizes public campaigns to pressure these companies to make them stop working with the aggressor state and financing its crimes. We demand that companies withdraw from Russia, break all contracts, stop servicing Russian clients and invest in the economy of the aggressor state.
And we can already say that these appeals work. For example, in April 2022, it became known that Japan Tobacco plans to exit the Russian market. In response to Russia's war in Ukraine and the crimes committed against civilians, the Japanese company is ready to sell JT International Russia, which covers 40% of the tobacco market in the region. Russia accounts for up to 15% of JT's operating income. The company has four factories in Russia, with 4,000 employees. In addition, in March, the company announced the suspension of investments, marketing activities, and the postponement of the launch of a special device for heating tobacco in the territory of the aggressor country.
Also, the Economic Security Council of Ukraine regularly communicates with governmental and non-governmental structures in order to impose or tighten sanctions against Russian companies and organizations, as well as international organizations that, despite Russia's armed aggression, continue to cooperate with Putin's criminal regime.
To substantiate its decisions and appeals, the Economic Security Council of Ukraine collects and analyzes information from open sources (uses open source intelligence, or OSINT, technologies), and also actively consults with business representatives, authorities and justice authorities of Ukraine and other countries, the media and public activists. Thus, the institution determines which foreign companies are the most important for Russia and whose activities allow Russia to continue the war.
Within a few months of its activity, the Economic Security Council of Ukraine has identified dozens of international suppliers in manufacturing, agricultural industry, software, oil trading and oilfield services sectors, that continue their operations in the Russian Federation and support Putin's regime. The Economic Security Council of Ukraine conducts information campaigns about these companies.
In addition, the Economic Security Council of Ukraine conducts research on how Russian companies continue to supply their goods abroad, in particular to the US and EU countries, bypassing sanctions. For example, the Economic Security Council of Ukraine identified that the well-known Russian concern Kalashnikov, which is part of the state corporation Rostec, continues to sell weapons to the United States through a shell firm. Thus, the aggressor state continues to receive money from abroad, which it then spends on strengthening its military capabilities.
The Economic Security Council of Ukraine does its best to make Russian companies withdraw from the foreign markets, as well as foreign companies from the Russian Federation.
As a result of the active work of the Economic Security Council of Ukraine and its partners, the economy of the Russian Federation has already been severely affected. It means that the military capabilities of the aggressor state have been affected as well. However, this is still not enough to stop this totalitarian machine, so we continue to fight on the economic front and call on you to do the same!