Contact: info.Ukraine@fscluster.org Cluster Meeting Severodonetsk 20 April, 2017 Contact: info.Ukraine@fscluster.org

Agenda Follow Up Action Points / Minutes Partner Activity Update Thematic Assessment on Livelihoods – Final Findings (REACH) Update on Agricultural Assistance (FAO) AOB SPHERE Training update Country Cluster Performance Monitoring (CCPM) 2017 Food Security Assessment Livelihoods Update (LWG and definitions)

Approval of Minutes & Follow Up Action Points STATUS FOLLOW UP PARTNER UPDATES -- ACTIVITY CLASSIFICATION Agricultural inputs: “Distribution of voucher for agricultural inputs” to include cash option. Livelihoods inputs: 1) add distinction between vocational trainings and “light trainings” add column for number of “expected” jobs. add Cash for Work Done - IMO added to the March data collection template. Retro-active update of 2016 inputs, mapping of grants and trainings. Approaches to Job Creation: LWG to call for a working group meeting in early April. Meeting held on 11 April. None ASSESSMENTS – COMPLETED / PLANNED: FSLC to collect information on partner’s assessments and partners to share inputs. Inputs received from 7 organisations. To be shared with OCHA in coming week. FSLC to share with OCHA. Referrals: CC to follow up on three referrals from OCHA. Hirske (Popasnianskyi raion) Pryvillia (near Lysychansk) RAF Distribution in Petropavlivka WFP looked into Hirske and Pryvilia and no need for food. For Petropavlivka RAF planned to include residents in April rounds of distribution. NGO FORUM SPHERE TRAINING: IMO to circulate online survey and interested members to provide inputs. 8 organisations have completed the survey and 7 organisations are interested. Training to be organised in May/June. Approval of Minutes

FSC objective 1 Access to food Partner Activity Update FSC objective 1 Access to food

Food Security Analysis - Update

Access to Food interventions March 2017 Access to Food interventions   HRP FS community Donetska 6,236 26,923 GCA 1,935 22,622 NGCA 4,301 Luhanska 553 11,494 Dnipropetrovska 150 Zaporizska 1,619 2,019 Kharkivska 134 Total 8,542 40,720

Partner Activity Update

Partner Activity Update

Partner Activity Update Please note, the map only reflects the interventions of those organisations that reports to the FSLC.

Partner Activity Update The current gap analysis map includes only inputs from those partners who have shared data to date on the raion level by the 19 April 2017. Further inputs are expected in the coming month, including from WFP and other cluster partners. An updated map will be shared at this point. Please note, the map only reflects the interventions of those organisations that reports to the FSLC. For project planning and targeting, please contact info.Ukraine@fscluster.org for further details

FSC objective 2 Agricultural inputs January - March Activity Number of HH Organization Distribution of voucher for agricultural inputs 2,717 PIN Distribution of fodder (provision of 100 kg of complete chicken fodder) 500 FAO Distribution of fodder (provision of 808 kg of hay to the beneficiary HHs) 68 Total 3,285 PIN, FAO

FSC objective 2 Agricultural inputs Plans

FSC objective 2 Agricultural input - Plans

FSC objective 2 Agricultural inputs Plans

FSC objective 3 Livelihood Assets Oblast Job creation grants (as a separate category) Livelihoods grants (agricultural ) Livelihoods grants (other, non agricultural) Vocational Training (more extensive training) trainings (light) Total Luhanska 30 446 663 1139 Donetska 29 112 436 39 380 996 Odeska 75 276 351 Poltavska 62 257 319 Lvivska 90 204 294 Cherkaska 111 173 284 Sumska 81 185 266 Dnipropetrovska 38 17 207 262 Vinnytska 150 225 Khmelnytska 73 143 216 Khersonska 103 215 Zhytomyrska 64 115 179 Zaporizska 71 4 101 176 Kharkivska 47 12 174 Kyiv 59 99 158 Kirovohradska 56 53 109 Volynska 36 60 96 Rivnenska 33 55 88 Ternopilska 35 51 86 Ivano-Frankivska 25 57 82 Chernihivska 80 Chernivetska 22 58 Zakarpatska 54 79 Grand Total 2,088 72 3,623 5,954

Partner Activity Update

Partner Activity Update

Partner Activity Update

Questions?

Agenda Follow Up Action Points / Minutes Partner Activity Update and Update of IM tools (FSLC) Thematic Assessment on Livelihoods – Final Findings (REACH) Update on Agricultural Assistance (FAO) AOB SPHERE Training update Country Cluster Performance Monitoring (CCPM) 2017 Food Security Assessment Livelihoods Update (LWG and definitions)

REACH Thematic Assessment Final Findings Kramatorsk, 19 April 2017 V 1.0

Contents Background SDR Sampling Findings Conclusions

Background

Why this assessment? Multiple assessments on humanitarian crisis Assumption that livelihood situation deteriorates as we move towards the contact line Transition from humanitarian to early recovery and development programmes Multiple studies but no assessment comparing perspectives of employers and active population REACH agreed with the major humanitarian partners to conduct an assessment on livelihoods in the 5 eastern oblasts of Ukraine

General Objective To inform interventions on livelihood programming to support the needs of local enterprises and the working age population of Luhansk, Donetsk, Kharkiv, Dnipropetrovsk, and Zaporizhia Oblasts.

Timeline of Assessment November Consultations with PIN, DRC, Mercycorp, NRC, FSL, CWG, IOM, & UNDP Terms of Reference, tools designed and shared for feedback December Sampling consultations, planning and resource mobilization Quantitative data collection conducted in 2nd half of December January Data processing and data cleaning Preliminary data analysis February-March Sharing of preliminary findings Drafting of report

SDR

Secondary Data Consulted 40 sources from more than 30 organisations Sample of SDR sources Source EBRD German Advisory Group Ukraine Economic Bulletin of Donbass Kyiv National University Ministry of Economic Development and Trade of Ukraine IOM FAO PIN World Bank State Statistics Services of Ukraine

Sampling

Target Population . Conflict-affected Oblasts of Eastern Ukraine Heads of local enterprises Working Age Population .

Working Age Population Data Collection Working Age Population Enterprises Qualitative Data Source Admin4 (settlement) data from the state statistics of Ukraine with population above 1000 persons Enterprises registry (registered) Key Informants Focus Group Discussions Stratification Oblast and population density Oblast and size Oblast Result 719 surveys in 200 settlements conducted for representativeness at oblast level 719 surveys in 134 settlements conducted for representativeness at oblast level KI surveys w/ 5 universities, 5 labour centres 5 FGDs Lack of information on vulnerability of conflict affected population

Working Age Population Sampling Note the limitations: - <1000K settlements out Lack of information on vulnerability of conflict affected population

Findings – Context Analysis

Key Findings – GDP per Capita 8% drop in GDP per capita based on purchasing power parity (PPP)

Key Findings – Investment Large drop in FDI to Ukraine with slight recovery

Key Findings – Top Employers   Top 10 Employment Sectors 1 2 3 4 5 6 7 8 9 10 Eastern oblasts Industry Wholesale and retail trade; repair of motor vehicles and motorcycles Agriculture, forestry and fisheries Education Transportation, storage, postal and courier activities Health care and social assistance Public administration and defense; compulsory social security 2 Construction Professional, scientific and technical activities Real estate Ukraine Other economic activities Industry is the first employer in the five eastern oblasts

Key Findings – Top Employers Donetsk and Luhansk much more industrial

Key Findings – Wage Disparities Significant differences in regional average wages with Donetsk and Dnipropetrovsk above average and three others below

Key Findings – Enterprise Size Location Big Medium Small Micro East 50% 35% 11% 4% Ukraine 39% 40% 16% 5% Dnipropetrovsk 56% 30% 10% Donetsk 63% 6% 2% Zaporizhia 45% 12% Luhansk 48% Kharkiv 25% 51% 17% Higher reliance on big enterprises in the east: 63% of wages paid by big enterprises in Donetsk

Key Findings – Rural – Urban Divide Based on JRC Global Human Settlement

Key Findings – Internal Migration Based on JRC Global Human Settlement Donetsk and Luhansk experiencing pre-conflict net-outflows compounded by crisis

Key Findings – Displacement Higher concentration of IDPs in Donetsk and Luhansk from primary data collection Kharkiv more than 3% IDPs Numbers in line with MoSP data Based on JRC Global Human Settlement

Findings – Impact on Businesses

Key Findings – Loss of Trade Significant losses in trade mostly to CIS but also to EU: conflict affecting supply chains and markets

Key Findings – Loss of Trade Kharkiv, Donetsk and Luhansk highly impacted by changes in trade policy

Key Findings – Decrease in Profits 90% of respondents reported a decrease of 20% or more in profits

Disruption of Supply Chains Damaged Infrastructure Key Findings – Reasons   Decrease in Demand Disruption of Supply Chains Damaged Infrastructure Dnipro 90% 4% 7% Donetsk 74% 13% 26% Kharkiv 94% 15% Luhansk 84% 39% 38% Zaporizhia 76% 10% 6% Damaged infrastructure and disruption to supply chains less pronounced in Dnipro and Zaporizhia

Key Findings – Changes in Labour Almost1 in 6 had to decrease staff numbers

Key Findings – Barriers to Recruitment Lack of relevant skills and experience identified as a barrier to recruitment

Key Findings – Jobs in Short Supply Dnipro Donetsk Kharkiv Luhansk Zaporizhia Manager 12% 13% 33% 31% Professional 18% 20% 30% Miner 19% 64% 10% 1% 5% Professional technician 14% 37% Plant/Machine operator 8% 55% Sales and service 24% 15% 21% 27% Different needs for different economies: Donetsk has shortages of miners and Luhansk of machine operators

Key Findings – Access to Credit Access to credit is difficult for more than 1 in 3 enterprises

Key Findings – Access to Credit

Key Findings – Employment of IDPs Luhansk, Kharkiv, and Donetsk had higher proportions of businesses employing IDPs

Findings – Impact on the Population

Key Findings – Impact Type Main impacts: Lower salaries, job loss

Key Findings – Job Loss

Key Findings – Inability to Meet Needs More than 1 in 3 in all areas unable to meet basic needs with income

Key Findings – Coping Mechanisms

Key Findings – Self-Employment More than 1 in 4 in all oblasts would like to start their own business

Key Findings – Start Business Barriers Lack of ideas, funding, and skills as top 3 barriers to entrepreneurship

Conclusion

Overall Observations Conflict has disrupted economic activity, impacting both enterprises and the workforce in the surveyed areas Proximity to the contact line created more challenging situations for Donetsk and Luhansk businesses but rural- urban composition is also important Vocational training, support for food production, and access to credit can help affected populations but will have limited impact on the long-term situation in a region facing development challenges

Questions?

Agenda Follow Up Action Points / Minutes Partner Activity Update and Update of IM tools (FSLC) Thematic Assessment on Livelihoods – Final Findings (REACH) Update on Agricultural Assistance (FAO) AOB SPHERE Training update Country Cluster Performance Monitoring (CCPM) 2017 Food Security Assessment Livelihoods Update (LWG and definitions)

FAO Agricultural update

HAY DISTRIBUTION In March 2017 FAO distributed 55 tons ( approx. 800 kg per household) of hay in villages of Bakhmut rayon near the contact line: Zhovanka, Bakhmutka, Mayorsk, Peski, Dacha. Actual time for such distribution – from November till April.

HENS DISTRIBUTION Instead of buying one-day or three-weeks chickens there is a possibility of distributing laying hen (egg-production) from poultry farm. Such hen saves their egg-laying capacity, are quite very cheap and there is no need to provide start fodder with them.

OTHER FARMERS NEEDS Due to high price farmers need such kind of assistance: chemical fertilizers diesel fuel

Thank you! FAO Kramatorsk field office: Andriy Volkov andrey.volkov@fao.org +38-050-712-28-81 Olena Baranova olena.baranova@fao.org +38-050-219-59-42

Any other business Quick Update: SPHERE Training Online Survey - Country Cluster Performance Monitoring (CCPM) 2017 Quick Update: Food Security Assessment Quick Update: Livelihoods  LWG  Definitions – draft livelihoods activity overview Type of training  ADRA DORCAS FAO TGH WFP IFRC ACF Total Food Kyiv 3   7 2 12 Kramatorsk 1 9 Severodonetsk 5 11 24 Livelihoods 10 25

DRAFT - FSLC Livelihood Activity Overview 30-50 km Calm situation Possible to expand small business Some movement restrictions GEOGRAPHY Severodonetsk / Kramatorsk No transport restrictions Access to all services Enough skilled labour 10 km / e.g. Popasna Small business is possible Still risky to engage big business Contact Line / e.g. Marinka Regular shelling Volatile situation Many check points FSLC FOCUS ACTIVITIES Emergency Livelihoods Pure Early Recovery Livelihoods activities Early Recovery Livelihoods Activities Development (“Recovery”) Activities Seeds, poultry etc (for food security and basic needs not income)  Targeting based on Vulnerability Vocational training Small business / livelihoods grants (income generation)  Targeting based on potential and vulnerability Job creation (income generation)  Targeting based on potential (not only vulnerability) < $2500 $ LIVELIHOOD GRANT SIZE > $1000 > $500 TIMELINE (and Geography)

The next meeting is tentatively scheduled for Wednesday 24 May at 10:00. Thank You