Izmail's industrial sector has shrunk by nearly half

Izmail has approved the community budget forecast for 2027–2029. The document projects growth in industry, investment, and freight transportation, while identifying war, inflation, and cuts to government transfers as the main risks.

This was reported by Intent.

On August 31, the Executive Committee of the Izmail City Council approved the municipal budget forecast for the next three years. The matter will be submitted for consideration at the next session of the city council.

The authors of the forecast note a recovery in industry in 2027–2029 following a sharp drop in sales volumes in 2026. At the same time, the municipality expects significant growth in capital investments and more than 1.12 billion UAH in educational subsidies from the state budget over the course of three years.

Industry fell by nearly half in 2026

According to the forecast, in January–March 2026, the volume of industrial output sold in Izmail amounted to 404.6 million hryvnias. This is 49.1% less than during the same period in 2025, when the figure stood at 795.3 million hryvnias.

At the same time, the current figure exceeded the first-quarter 2024 figure—286.7 million hryvnias—by 41.1%.

The manufacturing sector accounted for the bulk of industrial output—316.2 million hryvnias, or 78.1% of the total.

In particular, the production of food products, beverages, and tobacco products accounted for 235.3 million hryvnias.

In 2027–2029, city authorities expect an average annual growth of 9% in the volume of industrial output sold. This projection is based on the development of foreign economic relations, the utilization of the Danube’s logistical potential, companies’ entry into new markets—particularly European ones—and the implementation of innovations.

The transportation sector also remains one of the key drivers of Izmail’s economy. In the first quarter of 2026, the Izmail Commercial Seaport handled 778,200 metric tons of cargo. This represents 78.5% of the figure for the same period last year, but 104.5% of the planned volume. Over the course of three months, the port handled 415 vessels.
During this period, the river fleet of the Ukrainian Danube Shipping Company transported 168,000 metric tons of cargo—86.1% of the figure for the first quarter of 2025 and only 41.5% of the target.

Despite the decline in certain indicators, the forecast for 2027–2029 projects an average 15% growth in waterway cargo transportation and port cargo handling.

The city council attributes this to the growing role of the Danube Corridor in Ukraine’s logistics sector.

Capital investments increased 3.6-fold over the year

Construction and investment activity showed the most notable positive trends in the first quarter of 2026.

The volume of construction work completed in Izmail totaled 69.69 million hryvnias. This is 43.7% more than in the first quarter of 2025.
Capital investments over the year increased 3.6-fold—from 45.5 to 163.6 million hryvnias. Of this amount, 135.7 million hryvnias came from the own funds of enterprises and organizations.

In 2027–2029, the municipality forecasts further growth in construction and capital investments. Among the priorities are transportation infrastructure, the modernization of municipal facilities, and the housing stock. City authorities also plan to attract private capital and resources from international cooperation.

Labor market indicators are also showing positive trends. The average monthly salary for a full-time employee in Izmail in the first quarter of 2026 was 18,160 hryvnias—11% more than a year earlier.

As of April 1, there were 116 registered unemployed job seekers in the city. At the same time, businesses needed 350 employees to fill existing vacancies, and during the reporting period, the reported demand for personnel stood at 421 people. Between January and March, 107 people found jobs.
The forecast notes that in 2027–2029, the number of business entities is expected to remain stable, and small and medium-sized businesses are expected to expand. Growth in average wages and retail sales is also projected.

At the same time, payments for housing and utility services remain a problem area. In the first quarter of 2026, utility bills totaling 88.07 million hryvnias were issued to residents, an increase of 11.6% compared to the same period in 2025. A total of 82.02 million hryvnias was paid.

The utility payment rate fell from 97% in the first quarter of 2025 to 93.1% in 2026. The rate of increase in utility arrears was 109.6%.

For 2027–2029, plans include the modernization of heating, water supply, and wastewater systems; improving the quality of drinking water; upgrading street lighting with energy-efficient technologies; and the improvement and repair of the street and road network.

Safety will remain a separate priority. The community has 126 shelters with a total capacity of approximately 40,200 people and 15 emergency shelters. 

For 2027–2029, plans include modernizing warning and video surveillance systems and strengthening the monitoring of public spaces, transportation, and critical infrastructure.

The forecast devotes significant attention to the social sector. The community plans to support war veterans, military personnel, families of fallen defenders, internally displaced persons, people with disabilities, and other vulnerable groups.

In the healthcare sector, plans include the purchase of modern medical and diagnostic equipment, routine and major repairs to medical facilities, the introduction of new technologies, and the provision of free or subsidized medications to certain groups.

In addition, from 2027 to 2029, the government plans to fund the development of culture, sports, and youth programs, as well as the creation of barrier-free environments.

Labor Issues

According to data from the Izmail branch of the Odesa Regional Employment Center, as of early April of this year, the number of job seekers in Izmail stood at 116, including 18 men and 98 women. 

In the first quarter of 2026, 107 people were employed. As of early April, there were 350 job openings at enterprises in the city and district. 

The average wage in Izmail for the first quarter was 18,160 UAH. For comparison: in the first quarter of 2025, this figure was 16,362 UAH.

The Izmail community expects to receive more than 1.12 billion hryvnias in educational subsidies from the state budget over three years: 346.8 million hryvnias in 2027, 377 million in 2028, and 403.7 million in 2029.

Among the main risks to meeting this forecast, the city council cites the consequences of Russian aggression, potential damage to industrial facilities, infrastructure, and the power grid, a decline in economic activity, and labor migration.

Other risks include changes in tax legislation, inflation, currency fluctuations, reductions in intergovernmental transfers, and rising energy prices.

To minimize these risks, the municipality plans to mobilize additional budgetary resources, utilize existing reserves, improve budget forecasting, and continue cooperation with international financial organizations.

No loans from the community budget are projected for 2027–2029.
 

Антоніна Лубченко