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ICC prosecutors won’t weigh in on Duterte’s bid to disqualify victims’ lawyers

FORMER PRESIDENT RODRIGO R. DUTERTE — INTERNATIONAL CRIMINAL COURT / COUR PÉNALE INTERNATIONALE

THE Office of the Prosecutor of the International Criminal Court (ICC) has declined to weigh in on a request by the defense team of former President Rodrigo R. Duterte to disqualify the external legal representatives for victims of his administration’s war on drugs.

In a three-page filing dated Feb. 16, Deputy Prosecutor Mame Mandiaye Niang told the court the prosecution “takes no position” on the defense’s move to remove the victims’ lawyers.

“The Prosecution informs the Chamber that it takes no position on the ‘Defence Request for the Disqualification of the External Legal Representatives for the Victims,’” Mr. Niang said.

The disqualification bid was formally submitted by Mr. Duterte’s camp on Feb. 11, just weeks after the court appointed the Filipino legal team.

The motion seeks to revoke the designations of human rights lawyers Joel R. Butuyan and Gilbert T. Andres, as well as case manager Nicolene S. Arcaina, over a supposed “conflict of interest.” The defense, led by Nicholas Kaufman, argued that the team poses an “impediment to representation,” though specific supporting claims in the filing remained redacted.

“Should it assist the Chamber in considering the Defense’s request, the Prosecution confirms that it will not rely on [REDACTED] for the confirmation of charges hearing. The Prosecution also does not intend to rely on [REDACTED] at trial,” the prosecution added.

Mr. Duterte, currently detained at the Hague, is facing crimes against humanity for murders set for confirmation of charges on alleged three counts starting on Feb. 23. — Erika Mae P. Sinaking

Gov’t urged to weigh costs of travel tax removal

REUTERS

THE administration should carefully weigh the cost of scrapping the decades-old travel tax against its advantages as it risks becoming counterproductive, an analyst said.

“The benefits to the economy are unclear,” Jose Enrique A. Africa, Executive Director of IBON Foundation told BusinessWorld in a separate Viber chat.

He explained that since Overseas Filipino Workers are already exempt and their dependents pay a reduced rate, the abolition would primarily benefit a small segment of the population.

“It’s reported that some P7 billion to P8 billion in revenue annually may even be lost — this is a tiny one-fifth of 1% of government revenues but, still, is a revenue stream that is mildly progressive,” he said.

“It may even be counterproductive if it incentivizes leisure travelers to spend abroad rather than domestically, and increases foreign exchange outflows,” he added.

He suggested prioritizing tax reforms that also reduce consumption taxes like Value-Added Tax that affect the poor, while ramping up wealth and income taxes on the rich and reducing incentives for foreign capital.

Meanwhile, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort told BusinessWorld said the proposal is meant to align Philippine travel standards with global best practices and reduce the burden on citizens.

“This could be beyond the revenues to be foregone by the national government, as the usual stance is the protect the recurring government revenue sources in view of budget deficits that require more borrowing/debt,” he said in a separate Viber message.

“This would reduce the steps and the lines for Filipinos traveling overseas for leisure/holidays or for business. This would lead to cost and time savings for some Filipinos traveling abroad.”

Currently, departing travelers are required to pay P2,700 for first class and P1,620 for economy-class tickets. To address concerns regarding the loss of funding for key sectors, the Palace said that programs currently supported by the tax — including those under the Tourism Infrastructure and Enterprise Zone Authority, the Commission on Higher Education, and the National Commission for Culture and the Arts — would instead be funded through the General Appropriations Act. At present, the tax revenue is split 50-40-10 among these three agencies, respectively. — Erika Mae P. Sinaking

DBM, Malaysia pursuing Halal fintech

BW FILE PHOTO

THE Department of Budget and Management (DBM) said it is exploring joint initiatives with Malaysian envoy on Halal financial technology (fintech) and the digitalization of the Philippines’ budgeting system.

Budget Secretary Rolando U. Toledo met Malaysian Ambassador Abdul Malik Melvin Castelino in a courtesy call on Feb. 16 at the DBM Central Office, it said in a social media post on Monday.

The officials discussed deepening the countries’ collaboration on public financial management capacity development in the Bangsamoro Autonomous Region in Muslim Mindanao.

Apart from this, they also convened about supporting the Halal industry, tourism, open and digital governance, and the growth of micro, small, and medium‑sized enterprises.

Embassy of Malaysia in the Philippines Deputy Chief of Mission Norjufri Nizar Edrus, First Secretary Tan Foo Koeng, Trade Attaché Azlina Che Dir, and Tourism Attaché Mohd Faizal Sharip also joined the meeting. — Aubrey Rose A. Inosante

Customs files raps vs 40 importers, brokers over smuggling

THE Bureau of Customs has filed criminal charges against 40 importers and licensed customs brokers for violating the Customs Modernization and Tariff Act, as smuggling continues to erode government revenues.

Customs announced on Tuesday that it has now lodged 14 criminal cases against importers and brokers for unlawful importation activities before the Department of Justice, covering the period July 1 to the present.

“The cases involve unlawful importation activities, including technical smuggling, misdeclaration, and undervaluation of goods, aimed at evading the correct payment of duties and taxes,” it said in a statement.

In addition, the bureau also secured four criminal convictions from prior smuggling cases before Commissioner Ariel F. Nepomuceno took office in July 2025.

Customs said these convictions are a “significant milestone” in customs enforcement and showed that pursued cases can reach judicial resolution.

“By consistently pursuing prosecution, the bureau strengthens deterrence against smuggling schemes that deprive the government of rightful revenue and create unfair competition against legitimate businesses,” it said.

Customs earns revenue primarily through duties, tariffs, and taxes imposed on imported goods entering the Philippines, and is aiming to collect P1.003 trillion this year.

The agency fell short of its P958.7‑billion target last year, generating only P934.4 billion after a mid-year freeze on rice imports dented collections.

From January to December 2025, confiscated smuggled products hit P61.7 billion, led by P680.1 million in e‑cigarettes and vapes, data from the bureau showed.

Other seizures included P624.93 million in electronics, P622.08 million in agricultural products, P399.21 million in food items, P340.30 million in hazardous waste, and P202.1 million in fuel. — Aubrey Rose A. Inosante

Groups warn against rising online child exploitation via AI tools

STOCK IMAGE | Image by Gerd Altmann from Pixabay

Children’s rights organizations said that online child exploitation is rapidly rising in the Philippines, as the country increasingly adopts artificial intelligence (AI).

“We are facing a reality where algorithms move faster than our laws, leaving children vulnerable to abuse before we even know the risks exist,” Plan International Pilipinas Executive Director Pebbles Sanchez-Ogang said in a statement on Monday.

The group, along with Consuelo Foundation, said that the proliferation of generative AI tools for images, videos, and voice recordings is being used to exploit and extort children online.

The AI-generated content includes sexual images, deepfake content, impersonation scams, and grooming tactics.

“With AI tools now lowering the technical barriers to creating manipulated sexual images and videos, advocates warn that children—particularly girls—face heightened risks of image-based abuse, cyberbullying, impersonation, and online blackmail,” they said in a statement.

The groups also noted that one in two children has experienced some form of online violence, and seven out of ten children reported experiencing online abuse.

However, the National Coordinating Center Against OSAEC-CSAEM underscored that the low reported incidents, in parallel with realities on the ground, suggest that many cases remain unreported.

Data from the Commission on Human Rights (CHR) showed that over 2.7 million cyber tipline reports were recorded in 2023 alone, highlighting a steep rise in Online Sexual Abuse and Exploitation of Children (OSAEC).

The commission added that chronic underreporting stems from poverty-driven vulnerabilities, family member involvement, and trauma from the abuse.

Earlier this month, the Expanded Anti-Online Sexual Abuse or Exploitation of Children and Anti-Sexual Abuse or Exploitation Materials Act was listed as one of the priority bills in the Legislative-Executive Development Advisory Council (LEDAC).

Other priority measures include the Anti-Political Dynasty Law, the Travel Tax Abolition, the Citizen Access and Disclosure of Expenditures for National Accountability, or CADENA Act, the Independent People’s Commission Act, and the Party-List System Reform Act.

The LEDAC has committed to fast-tracking the passage of the 21 priority measures by June 2026. — Almira Louise S. Martinez

Eala named co-Athlete of the Year with Yulo

ALEX EALA — FACEBOOK.COM/WTA

BECOMING the country’s Athlete of the Year is just the beginning for world tennis rising star Alexandra “Alex” Eala.

“This is just the beginning,” beamed Ms. Eala in a short video speech while in the Middle East for the WTA Tour during the Philippine Sportswriters Association (PSA) Awards Night on Monday at the Diamond Hotel.

“This award means so much to me because it reflects on how far tennis and my sports has come in our country. Thank you so much.”

Ms. Eala was named the PSA co-Athlete of the Year with Paris Olympics double-gold medalist Carlos Yulo, who copped crowns once again in the Asian Artistic Gymnastics Championships and the FIG Artistic Gymnastics World Championships last year.

The 20-year-old, for her part, notched a bevy of firsts for Philippine tennis including becoming the first Filipina player to enter the world’s Top 50 rankings.

She’s also the first Filipina WTA champion and first Filipina to qualify for all four Grand Slam main draws on top of inspiring the country’s first hosting of a WTA 125 event in history.

In December, Ms. Eala became the first Filipina gold medalist in the SEA Games tennis in more than two decades.

“I’m so honored to be named the PSA Athlete of the Year alongside Carlos Yulo. Congratulations Carlos, isang malaking karangalan makasama ka sa parangal na ito,” added Ms. Eala.

Ms. Eala is playing at the WTA 1000 Dubai Duty Free Tennis Championships, awaiting a second-round clash against world No. 8 Jasmine Paolini of Italy as BusinessWorld went to press.

Ms. Eala earned a shot at the 30-year-old Ms. Paolini, 2024 Olympic doubles gold medalist with Sara Errani, after an injury to American foe Hailey Baptiste, who retired leading 1-0 in the second set due to abdominal pain.

The lefty ace took a 6-4 win in the first set behind a 3-1 blast from a close 3-all score.

Ms. Eala, assured of $26,000 and 65 points, is out to make it up in Dubai after a first-round exit in the WTA 1000 Qatar Open last week that dragged her down to No. 47 in the WTA rankings from No. 40.

Prior to that, Ms. Eala had a string of playoff finishes in the WTA 250 ASB Classic in New Zealand, WTA 125 Philippine Women’s Open, her first home tourney, and the WTA 500 Abu Dhabi Open.

She also made appearances in all four major main draws after a debut in the Australian Open last month in Melbourne, where she netted an exhibition crown in the Kooyong Classic as well. — John Bryan Ulanday

Former HS teammates Cantada, Nitura face off for UAAP volleyball early lead

SHAINA NITURA — UAAP

Games on Wednesday
(UST Quadricentennial Pavilion Arena)
9 a.m. – AdU vs. NU (Men)
11 a.m. – AdU vs. NU (Women)
3 p.m. – UE vs. FEU (Men)
5 p.m. – UE vs. FEU (Women)

RISING STARS Sam Cantada and Shaina Nitura offer a glimpse of Philippine volleyball’s future as reigning champion National University (NU) takes on Adamson in the UAAP Season 88 women’s volleyball tournament on Wednesday at the UST Quadricentennial Pavilion.

Game time is 11 a.m. for the first encounter between former junior teammates with an early lead at stake following their big wins in the opener last weekend.

Super rookie Ms. Cantada is out to follow up on her impressive debut for NU in a triumphant start to its post-Bella Belen era against last year’s record-breaking Rookie of the Year Ms. Nitura and Adamson, her former team in high school (HS) play.

Ms. Cantada was a UAAP juniors MVP for the Lady Baby Falcons in UAAP Season 87, keeping the MVP crown in San Marcelino after Ms. Nitura won it in Season 86 as Adamson completed a 14-0 tournament sweep.

They now spike from different ends of the court as Ms. Cantada took a U-turn to Jhocson to suit up for NU in collegiate play, having been tasked to extend the Lady Bulldogs dynasty to a three-peat without their championship core of Ms. Belen, Alyssa Solomon, Sheena Toring and Erin Pangilinan.

“Siyempre po ‘yun nga po kalaban po… kilala ko po ‘yan, ‘yung ugali nila pero siyempre hindi rin po kami papayag. Gagawin din po namin ‘yung best namin palagi,” said Ms. Cantada, who fired 21 points in NU’s tough debut against Santo Tomas, 25-23, 25-19, 23-25, 26-24.

The Lady Falcons had an easier debut, clipping the wings of the Ateneo Blue Eagles with a 25-19, 25-18, 25-10, in only 79 minutes of play marked by a whopping 16-1 run in the third set.

Adamson hardly needed an eruption from Ms. Nitura in that match as she only had 16 points. Against her former winger Ms. Cantada and the Lady Bulldogs also featuring team captain Vange Alinsug though, Ms. Nitura has to pour everything she can with a helping hand in coverage from Frances Mordi.

“’Yun nga, sabi nga namin since then, back in high school, that’s the plan already — to compete in college. Nagbabaka-sakali kami na mai-angat ‘yung chemistry na nabubuo namin ‘nung high school up to college so let’s see kung paano po kami makakabuo ng chemistry and history through our people na pinrovide po sa amin ni God,” said Ms. Nitura.

Meanwhile, Far Eastern University (FEU) and University of the East (EU) shoot for a first win at 5 p.m. after bowing to La Salle and the retooled University of the Philippines, respectively.

The Lady Tamaraws folded to the Lady Spikers, 25-19, 25-14, 27-25, while the Lady Warriors absorbed a 25-12, 25-9, 21-25, 25-19 defeat to the Fighting Maroons last weekend.

On the men’s side, NU and Adamson also clash for the early lead at 9 a.m. while FEU eyes the same against UE at 3 p.m. — John Bryan Ulanday

Fajardo shoulders Gilas big-man duties in absence of Kai Sotto, Millora-Brown

JUNE MAR FAJARDO — FIBA

JUNE MAR FAJARDO is embracing the burden that awaits him and the rest of the Gilas Pilipinas frontcourt with Kai Sotto and Quentin Millora-Brown missing the coming campaign.

“Doble kayod tayo. Kahit wala sila, gagawin natin ang paghahanda,” Mr. Fajardo, who received another “Mr. Basketball” citation from the Philippine Sportswriters Association on Monday night.

The 6-foot-10 Mr. Fajardo realizes it will be a tall order for him, AJ Edu and new addition Justine “Balti” Baltazar during the second window of the FIBA World Cup Asian Qualifiers against two Oceania powerhouses, New Zealand (Feb. 26) and Australia (March 1).

“Mabibigat na kalaban ‘yun. Kailangan natin paghandaan nang husto,” he said.

Gilas got the ball rolling with an afternoon session at Upper Deck on Monday with more intense workouts slated at Inspire Sports Academy beginning on Wednesday.

Initial practices feature stalwarts from the PBA with the overseas-based mainstays like Dwight Ramos and Mr. Edu expected to get on board in the next few days.

The 6-foot-9 Mr. Baltazar joined coach Tim Cone’s pool right on Day 1.

“He’s a really versatile player as a big man, he’s a 6-9 guy who can play the wing,” Mr. Cone said of the Converge sophomore. “If we can get him up to step in what we do and how we do it and if we can get him to defend, that’s really the key.”

Balti knows exactly what the Nationals require of him.

“Number one depensa,” he said. “Ibibigay ko talaga best ko, gagawin ko talaga yung role ko kung makapasok sa Final 12.” — Olmin Leyba

Canada eyes more wins after gold-medal breakthrough in Italy

MILAN — For a nation deeply woven into the fabric of the Winter Olympics, the sight of Canada sitting 15th in the gold-medal standings more than halfway through the Milano Cortina Games sparked concern back home that their campaign had yet to ignite.

Long a giant of winter sport — from Vancouver’s historic 14-gold haul to decades of consistent podium finishes — Canada found itself still searching for its first top-step moment before freestyle skiing great Mikael Kingsbury won the dual moguls on Sunday.

That gold-medal wait was Canada’s longest at a Winter Olympics since the Calgary Games of 1988.

For David Shoemaker, the Canadian Olympic Committee’s chief executive officer, the breakthrough moment marked a shift in momentum. “It’s fair to say we’re not accustomed to waiting this long for a gold medal,” he told Reuters. “I got to congratulate (Kingsbury) and he remarked ‘That’s our first (gold), right?’ And he sort of expressed the feeling we all shared — hopefully that’s the first of several more to come. But there’s a lot of medal opportunities left in this competition.”

Canada has set itself a target of beating the 26 medals it won four years ago in Beijing. As of Monday morning it had nine, putting it 15th in the medal table in terms of golds and 10th in overall medals after 10 of 17 days.

But Canada has long been known as a second-week team, a delegation that finds its stride deeper into the Games, especially in sports such as men’s and women’s hockey. “No doubt that the attention of our nation is crystallizing around both our men’s and women’s hockey teams, and so it should,” Shoemaker said. “But our medal hopes continue to be across the sports so there’s still a lot of opportunity in short-track speed skating, certainly we look to our women’s team pursuit in long-track, ski cross, snowboard, slopestyle, freeski, big air, curling.”

Canada did have some near misses as well. Kingsbury’s silver in moguls came down to a tiebreak for gold, while Eliot Grondin missed gold in men’s snowboard cross by three-hundredths of a second.

Canada also suffered early injuries, with Mark McMorris, a triple Olympic snowboarding medalist, missing the big air event after a crash.

The Games featured early gold-medal breakthroughs for Brazil and Australia — countries not traditionally strong in winter sports. “There are more countries that are taking the Winter Games seriously, and therefore it becomes more competitive,” Shoemaker said. “So in an event like snowboard cross to see Britain win the mixed (team event), that’s not something France was accustomed to seeing, or (other powerhouses) Switzerland or Germany or Canada.”

“But from a movement standpoint, to see a Brazilian on top of the giant slalom, I think it’s wonderful,” he added. “I hope it doesn’t come at our expense, but I think that’s a good thing for the Olympic Games long-term.”

Shoemaker is confident Canada will close the Games strong. “We have a medal wall in all of our villages, and that allowed all of the 206 athletes to say, ‘OK, now it’s my turn,’ and I heard that from several athletes who are still yet to compete, and saw that as their inspiration.

“Our team still feels incredibly confident and feels good about our chances in what’s still to come.” — Reuters

Barcelona stunned by Girona, 2-1, leaving Real Madrid top of LaLiga

GIRONA, Spain — Barcelona was stunned by Girona who roared back to win 2-1 at home in a breathless Catalan derby on Monday, as last season’s champions failed to return to the LaLiga summit, leaving Real Madrid top of the table.

Barcelona struck the woodwork twice in the first half, Raphinha hitting the post before Lamine Yamal fired a penalty against the same upright in added time after Dani Olmo was fouled inside the box.

Pau Cubarsi finally put the visitors ahead in the 59th minute, rising to head home Jules Kounde’s cross from a short corner, but Girona leveled three minutes later when Thomas Lemar converted from close range after Vladyslav Vanat’s cross caused confusion.

Fran Beltran sealed victory in the 87th minute, steering home from Joel Roca’s pass as the Montilivi stadium erupted.

Barcelona pushed for an equalizer but could not break through, even after Roca was sent off in added time for a reckless foul on Yamal.

Barca remained on 58 points, two behind Real Madrid, and had lost successive games in all competitions for the first time since October.

“We lacked a bit of everything. We need to be self-critical. We need to improve things and get our act together,” Cubarsi told DAZN.

“After my goal, they scored very quickly to equalize. We got them back into the game too quickly. We need to improve on those goals they score right after we take the lead. Keep your head down and improve.”

Hansi Flick welcomed back Frenkie De Jong and Raphinha from injury after their absence in last week’s 4-0 Copa del Rey semifinal first-leg loss to Atletico Madrid, and Barca duly dominated possession early in the game.

Yet its finishing deserted them. Raphinha dragged wide after surging in from the left, while Yamal was denied from point-blank range by keeper Paulo Gazzaniga following a sharp counter down the right.

Girona was content to sit deep and spring forward, repeatedly testing Barcelona’s high defensive line with the pace of Bryan Gil as the former Tottenham Hotspur winger caused persistent problems for Kounde down the left channel. 

Gil’s surging runs carved out Girona’s best openings before the break. He twice set up Vanat, who was denied by an exceptional Joan Garcia, and the striker then squandered a gilt-edged chance in the 35th minute, slicing an effort from close range with no defender near him.

Yamal missed from the spot in added time before the break and the contest remained wide open after the interval, finally producing goals in quick succession.

Barcelona broke through in the 59th minute when Cubarsi rose highest from a short corner. Kounde delivered from the right and the defender twisted his neck to send a towering header into the top-right corner, beyond Gazzaniga’s desperate dive.

Their lead lasted barely three minutes, with Lemar equalizing as Girona seized momentum, pushing Barcelona back, with Garcia producing two outstanding one-handed saves to keep out efforts from Vanat and Roca when both seemed destined for the bottom corner.

But the keeper was powerless in the 87th minute. Claudio Echeverri drifted across the edge of the box before giving the ball back inside to Roca who squared it to substitute Beltran, who took a touch, lifted his head and slotted into the bottom-left corner to ignite a sold-out crowd.

Girona, who had been on a three-match winless run and hovering near the relegation places, climbed to 12th on 29 points, while Barcelona was left to rue missed chances and a defeat that could yet loom large in the title race. Reuters

The NBA reinvents the All-Star Game yet again

The National Basketball Association (NBA) had been trying to fix its All-Star Game for years. Just about everything was on the table to squeeze competitiveness out of marquee names: from drafting players to adjusting scoring systems to compressing the contest into brackets. And while each iteration arrived with promise, each likewise wound up being thwarted by lack of effort from the league’s best of the best. Defense became optional. Pride, negotiable. The showcase remained glamorous, but increasingly hollow. Which was why all eyes were on how the latest plan to revive the supposedly premier event would fare.

The 2026 edition introduced a three-team round-robin tournament built around a USA-versus-World concept, and conventional wisdom held out hope. Thematically, the latest structural reset looked promising. Bragging rights were at stake for two American squads and one international unit, and, true enough, they bought in. Their stalwarts defended, reacting emotionally and with visible irritation to missed rotations and lost possessions. Made shots and dramatic turns were celebrated. And for an event that had hitherto drifted toward theater, this was a notable return to intent.

When the smoke cleared, Team Stars, featuring an extremely invested Anthony Edwards, took home the hardware with pride.

Significantly, much of the shift appeared to radiate from the international side, where a sense of urgency appeared less negotiable. Victor Wembanyama played with extreme intensity, his frustration over defensive lapses counting among the spectacle’s defining images.

In the grand scheme of things, his reaction mattered; if nothing else, it signaled that the outcome carried weight. In the aftermath, all and sundry acknowledged that his approach elevated the atmosphere. And as a reflection of the league’s culture, the All-Star Game did an outstanding job in tilting it back toward accountability.

Certainly, the new structure helped. The compressed format by way of short games, quick turnarounds, and survival on the line introduced immediate consequences. Players could not coast through long stretches and recover later. Every possession mattered because of limited time. The design rewarded attention and punished drift, and the result was a sequence of tightly contested matchups, dramatic finishes, and a championship game that, while lopsided on the scoreboard, met its objective all the same.

Even the broader weekend reflected a recalibration of priorities. The presence of generational figures such as LeBron James and Kevin Durant still supplied unmistakable star power, but the ultimate goal went beyond mere entertainment. Conversations centered not just on dunks and long-range shooting, but on matchups and adjustments, on language that had been conspicuously absent in recent years. Which is to say competition became the foundation of customer delight.

Whether the development represents a permanent shift is anybody’s guess. The All-Star Game has reinvented itself before, and novelty alone does not guarantee sustainability. But for one weekend, the league managed to catch what it had been chasing for the better part of a decade: players who cared enough, and a format that gave the care center stage. The exhibition regained tension. The showcase rediscovered resistance. And for the first time in a long while, the All-Star Game lived up to its name.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is a consultant on strategic planning, operations and human resources management, corporate communications, and business development.

Ukraine’s small firms struggle as airstrikes cut power

Army soldier figurines are displayed in front of the Ukrainian and Russian flag colors background in this illustration taken, Feb. 13, 2022. — REUTERS/DADO RUVIC/ILLUSTRATION

IRPIN, Ukraine — Nataliia Bilostotska poured her heart and soul into her three-year-old beauty salon in a commuter town just outside Kyiv. But when the temperature inside plunged to almost freezing, she realized she had to shut up shop.

“At first the girls said: ‘It’s fine. We’ll warm up,’” she recalled. “Then a manicure specialist called me and showed me on video that her fingers wouldn’t bend from the cold.”

Ms. Bilostotska is among the many small business owners struggling to stay afloat as Ukraine endures its coldest, darkest winter of the four-year-old war.

Russia’s frequent airstrikes on Ukraine’s power grid have caused days-long outages of electricity, water and heating during a winter that has seen temperatures sink below minus 20°C (-4°F).

Across the riverside capital Kyiv, many cafés, restaurants and other small businesses have closed, unable to withstand the financial strain in a bleak wartime economy. Those that remain open rely mostly on costly generators parked on the sidewalks, spewing fumes and noise.

Ms. Bilostotska complained that her monthly electricity bill had roughly quadrupled this year to 58,000 hryvnia ($1,340, $1 = 43.2378 hryvnias), plus another 15,000 hryvnia ($350) to fuel and service her generator.

“We have no earnings, no turnover. What are we supposed to pay it with?”

Raising prices isn’t an option, she said, because customers would simply stop coming.

The Kyiv School of Economics said last month power outages pose the biggest immediate economic risk for Ukraine. Prolonged disruption could cost up to 2-3% of gross domestic product, it warned, though the impact would be smaller if firms adapt quickly.

Ukraine’s central bank last month revised down its growth forecasts for this year to 1.8% from 2% because of the energy crisis.

CLIENTS IN WINTER COATS
Ms. Bilostotska, a mother of two young children, took a part-time office job to pay off her loan for the business, which is currently losing up to 40,000 hryvnia ($925) per month.

She opened her first nail salon, part of the G-Bar franchise with dozens of locations across Ukraine, in Irpin in 2023, a year after Moscow’s invading forces were expelled from the northern town.

She opened her second salon in the neighboring town of Bucha last year. Six months later Russia began its intense bombardment of power infrastructure, plunging cities into darkness for all but a few hours a day.

When the temperature in her Irpin salon dropped to 2°C and electric heaters proved inadequate, Ms. Bilostotska decided to close it until conditions improved.

The salon reopened in early February — just as a fresh cold snap arrived.

The first day saw clients getting their nails painted and hair styled in thick winter coats as the temperature inside hovered around 6°C (43°F).

Yuliia Kharchenko, a 28-year-old lawyer, sat bundled in a hoodie and a down jacket to have her nails painted, as employees heated water in a kettle to wash hair.

“The Russians still haven’t understood that even when Ukrainians find themselves in the circumstances they created for us, it’s still better than being part of Russia,” she said.

FINANCIAL DIFFICULTIES EXACERBATED
Most Ukrainian businesses had already procured alternative power sources to survive previous winters of Russian strikes, said Nataliia Kolesnichenko, senior economist at the Centre for Economic Strategies, a Kyiv think tank.

But they remain vulnerable to the expense of having to run generators and surging mains electricity tariffs as demand far outstrips supply.

Ukraine’s energy minister said last week that power demand was about a third larger than supply capacity — an improvement from the depths of January’s extreme cold.

Ms. Kolesnichenko said the power crisis is the latest setback for small businesses already grappling with wartime labor shortages and safety risks to premises and supply chains. Small firms employ about half of Ukraine’s workforce, and closures could lead to higher unemployment and emigration.

“The coming months will be difficult,” Yevhen Klopotenko, a celebrity chef and restaurant owner, wrote on Facebook last week, warning of potential layoffs. “Maybe things will get even tougher.”

A recent survey by the National Restaurant Association of Ukraine showed that 60% of respondents said the energy crisis posed a critical threat to their businesses.

Several million people have already left Ukraine since war broke out in 2022, many of them unlikely to return.

Ms. Bilostotska said she, like many Ukrainians, lives in a state of “permanent stress”: exhausted by the struggle to keep her business going and fearful for her children every time Russian drones fly overhead.

“The question is: when all this ends and we finally exhale a bit, what will be left inside us?” — Reuters