Nothing in Jakub Parusinski’s consulting and finance background to date has quite prepared him to be a CFO during wartime.

The London-based Parusinski helms the finances of The Kyiv Independent, a three-and-a-half month old English-language media outlet. He divides his challenges into two buckets: the accounting and bookkeeping that comes with keeping the operations going and long-term planning. 

In addition to stockpiling cash in different parts of Ukraine to pay correspondents in case money transfers are blocked and sourcing and sending bullet-proof vests and ballistics glasses to keep his and other journalists in Ukraine as safe as possible, Parusinski is adjusting to a war-stance on the fly and beginning to piece back together a tentative vision of what his company might look like after the war.

“Frankly, we’re making up the rules a little bit as we go,”  Parusinski said. “I’ve passed the CFA [exam], done my share of consulting for financial sector firms and all of that and nowhere have I seen a guidebook of … here’s how to be a financial director amidst a Russian invasion.” 

In an interview this week Parusinski detailed how the war in Ukraine is looming over even the most routine parts of his job such as payroll.

Tapping into crypto

Ukraine's digital and financial infrastructure have remained surprisingly intact, so far, he said, especially given the Swift sanctions that have roiled the Russian economy. As of Monday, most Ukrainian banks outside conflict zones were still open, though one or two transfers Parusinski's made into the country’s banks were blocked. How long the banks can hold up is unclear. "The resilience has been spectacular to witness but it's all very uncertain," he said.

Parusinski also has two other ways outside the traditional banking route to transfer money into the country. He uses a fintech platform or sends crypto-currency to a crypto exchange in Ukraine, which then converts it into payments in local currency, the hryvnia. The company added an option on its site for members to pay their monthly subscription fees with non-fungible tokens (NFT).

Ukraine, which ranks fourth in the world in adoption of digital currency, is expected to roll out an e-version of its currency soon, according The Washington Post. “Crypto has played a huge role in getting funds across the border and onto Ukrainian cards,” he said. “We’ve got our wallets in place. We managed a portion of our funds that way and that’s sort of allowed us to keep operating.” 

Shot to pieces 

Parusinski, who is also a managing partner of Jnomics Media, a media consulting company, holds an MBA from the Institut Européen d'Administration des Affaires (INSEAD) and worked early in his career as a consultant for McKinsey & Co. in London. He also worked previously as CEO of The Kyiv Post. The Kyiv Independent was launched late last year by journalists and former colleagues after they left the Post following a dispute over editorial independence with a new owner. 

The KI, which has a staff of about 30 located in Ukraine as well as the U.K., U.S. and Australia, started out with a multi-source revenue model based on advertising, subscriptions, crowdfunding through GoFundMe and $200,000 in venture capital funding from a Ukrainian tech startup. Those plans were “shot to pieces” after the Russian invasion last month, he said. The Eastern European advertising market was destabilized and the planned signing of venture capital deal documents scheduled for late February was paused, he said, though he still has a gentleman's agreement to tap the VC funding as needed. 

But KI's international ties proved a lifeline that has boosted its other income streams and filled its finance gaps. Subscription revenue from readers or supporters who can choose a membership level has surged amid an outpouring of support for Ukraine and demand for news there. And the company has seen an outpouring of support for its GoFundMe campaign, which drew an endorsement from the Obama Foundation. The fundraiser has received roughly $1.8 million in donations to date.

“Right now, we’re not actually facing a liquidity crunch. It’s more an issue of longer-term solvency,” because of uncertainty around how long the war will last and what the market will look like when it recovers, he said. "The international audience's ability to pay has not really been impacted by the crisis. So compared to other Ukrainian media we have been very fortunate." 

One complicating bookkeeping issue is that GoFundMe funds can't be spent inside Ukraine due to the platform's rules, so he routes that money to run the U.K.-based company's operations elsewhere and uses money from reader membership to fund operations in the country. But together, the income is keeping the company running, with the revenue from readers who pay based on a monthly usage-based membership subscription model covering almost two-thirds of the company’s costs, he said.

Covering the diaspora 

Due to the emotionally charged humanitarian crisis that has drawn some of its readers, he expects higher than normal attrition rates once the war ends and support ebbs. For that reason, he's beginning to plan for ways to retain as many as possible. Parusinski is focusing on the international market for now, with an aim toward becoming the leading global voice that will carry the story of Ukraine to the world via written content as well as video and non-media activities.

He is also looking at ways that KI can adjust to cover the diaspora of now more than two million people who have left Ukraine for Poland and other neighboring countries. "We need to be there to tell that story," he said. Right now he has two people in Poland but that could rise quickly and the company will likely need to find its own offices in the relatively expensive market. 

He is planning for the future despite the unknowns. “Even if we can get revenue, what are our cost structures going to look like in three months, in six months, 12 month’s time? That is anyone’s guess," he said. "It's really an uncertain environment to operate in and obviously from a financial director's perspective that’s not something you look for."