Ukrainians in Lithuania complain that they have no way to develop their businesses because banks refuse to give them loans and government support is limited.
Kateryna Serdiuk, a Ukrainian who came to Lithuania after the Russian invasion, has set up two shops in the country, selling vyshyvankas, traditional Ukrainian embroidered garments. She says she would like to expand her business, but does not have enough working capital, around 10,000 euros.
“Banks refuse because with our [temporary resident] status it is impossible,” she tells LRT TV. “Please to give us the same opportunities as Lithuanians, because I pay the same taxes as Lithuanians, I pay rent, I pay salaries. Don’t let us die, we want to keep growing, I have many ideas.”
Romas Stumbrys, president of the Association of Business Immigrants and Investors, confirms that Ukrainians cannot get loans from banks or support from government agencies.
“They don’t meet the criteria. Banks, seeing that they are risky as clients, do not give loans. With nowhere else to turn, they go to lenders that offer interest rates of up to 24 percent – a rip-off of Ukrainian citizens doing business in Lithuania,” he says.
For its part, Invega, the government-run financial services provider, assures that Ukrainian businesses have always been able to turn to INVEGA for a wide range of financing.
“And from September 2021, they also have the opportunity to apply for Startuok direct loans managed by Invega,” the agency said in a comment. “Moreover, those wishing to start a business in Lithuania have a possibility to get a loan with a 30-percent interest discount. This discount is a result of Invega’s cooperation with the Ministry of Economy in response to the Russian-led war in Ukraine.”
Some 70,000 Ukrainians have come to Lithuania since the Russian invasion in February 2022. They have set up 90 companies and 2,000 are self-employed.
Laima Mogenienė, chair of the parliamentary Temporary Support Group for Small and Medium-Sized Enterprises, says that Ukrainians are entaitled the same support as Lithuanian entrepreneurs.
“Invega [...] needs to review its methodologies and regulations, which prevent Ukrainian businesses from receiving the same support as Lithuanian businesses,” said Mogenienė, an opposition MP.
The Ministry of Economy says that Invega’s measures are already in place and one Ukrainian company has received a loan. The ministry is considering easing the criteria to increase the number of loans.
“These days we are not inclined to experiment, we think we have good mechanisms in place at Invega now. We just think that we need to adapt the existing tool – it will be more efficient, more productive,” says Erika Kuročkina, deputy economy minister.
Some Ukrainians also have trouble setting up a business because their residence permits are digital rather than plastic cards.
“In this situation, Ukrainian citizens are faced with not being able to set up companies, obtain e-signatures, open bank accounts and so on,” says Stumbrys, of the Association of Business Immigrants and Investors.
The Migration Department says that digital cards have saved a million euros and most of the government institutions have already gotten used to accepting electronic rather than plastic cards, but there may still be exceptions.
“It took some time for institutions to adapt to the documents, we know that some had to change things in their systems, but it took time. Probably some have not yet adapted,” comments Evelina Gudzinskaitė, director of the Migration Department.
The Migration Department estimates that more than 86,000 temporary residence permits have been issued in Lithuania this year, most of them, over 51,000, to Ukrainian citizens.
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