Article April 13, 2026

Ukraine IT hiring: real costs, developer talent, and market insights

Explore developer salaries, hiring costs, outsourcing models, and IT market trends in Ukraine. Practical guide for companies building engineering teams in Ukraine.

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Ukraine IT Hiring summary

A mature IT outsourcing market, Ukraine offers deep technical talent, a favorable tax regime, and costs 50–70% below Western benchmarks.

IT workforce: ~290,000+ professionals

50–70% lower cost than Western Europe

Senior developer employer’s total cost: €5,800–€6,700/month

Corporate tax: 18% flat rate standard, with 5% personal income tax and 9% Exit Capital Tax under a preferential tax regime

Strong in: TypeScript, Python, AI, cybersecurity

Main hubs: Kyiv (~67% of IT companies) and Lviv (24% of professionals)

Hiring time: 4-8 weeks

Notice period: 1 month, with room for negotiation

Best for: startups and growth-stage companies needing strong engineering output at controlled cost, mid-sized tech firms scaling quickly, and high-tech organizations looking for specialized talent in cybersecurity, AI, IoT, and telecom.

Why do companies continue to hire developers in Ukraine?

The short answer is that companies continue to hire developers in Ukraine for four structural reasons:

- substantial cost savings
- favorable tax and employment structure
- strong technical depth
- resilient, high-commitment workforce

Despite wartime disruption, Ukrainians continued to deliver production code from bomb shelters and push commits by generator light. Instead of shrinking, the IT workforce grew 11% year-on-year from 2022 to 2025, signaling continuity rather than contraction.

The war accelerated specialization. Defense tech now dominates, powered by engineers building cyber threat protection, battlefield AI, and IoT systems hardened against real adversaries, stress-tested in the real world.

The result is a convergence of three forces: cost efficiency, technical depth, and operational resilience.

A sprawling, restless engineering ecosystem

Ukraine’s IT sector operates as a large-scale, export-oriented engineering workforce integrated into global product delivery chains. It includes approximately 290,000+ IT professionals, with some estimates reaching 360,000, depending on classification.

The market structure is supported by:

- around 2,200 active IT companies (according to a study by the Ukrainian Ministry of Digital Transformation)

- up to 5,000 broader tech-related organizations

- 902 new IT companies registered in Q1 2026 alone, as reported by Dev.ua

This growth trajectory is closely tied to the Diia.City framework, which formalized legal and tax conditions for tech companies and reduced friction for international hiring.

At the same time, Ukraine is deeply embedded in global delivery networks. Engineering and R&D operations from companies such as Google, Oracle, Samsung, Nvidia, Cisco, and Rakuten are active in the country, reinforcing a hybrid model in which local teams operate within global product ecosystems rather than outside them.

A competitive but structured tax and employment environment

One of the defining features of the Ukrainian IT market is its hybrid employment structure. Most developers operate through contractor-based models, supported by Diia.City or sole proprietorship (FOP) frameworks.

This creates a predictable cost structure with relatively low friction for international employers:

- Diia.City personal income tax: 5%
- Military levy: 5% (or 1%)
- Social security contribution: ~22% of the minimum wage
- Corporate tax options: 9% exit capital model or 18% corporate income tax
- Standard VAT: 20%

This framework allows companies to structure engagements flexibly while maintaining legal clarity, particularly in cross-border setups.

Strong export orientation and sector performance

Ukraine’s IT sector is fundamentally export-driven, with most revenue coming from international clients.

Key indicators include:

- IT exports hit approximately $8.2 billion in 2025
- 9.3% year-on-year growth
- Total sector turnover running at $7.5–7.8 billion
- Ranked 30th globally in the E-Government Development Index (published by the United Nations), with a score nudging 0.88

This export orientation reinforces Ukraine’s position as a delivery-focused engineering market integrated into global supply chains.

Deep technical talent pipeline and global performance

The talent pipeline remains one of Ukraine’s most structurally important advantages. Each year:

- ~25,000–30,000 ICT graduates enter the market; one of the biggest outputs in Central and Eastern Europe
- Around 80–85% of the active workforce operates at an intermediate level or above
- Ukrainian teams have earned 107 medals at the International Olympiad in Informatics
- Consistent top-shelf performance in European programming competitions and global algorithmic benchmarks

In recent years, workforce composition has also shifted. Wartime labor dynamics have increased female participation in the tech sector, while demand for AI, cybersecurity, and defense-related engineering has accelerated skills development in those areas.

What is Diia.City?

What is FOP in Ukraine?

Diia.City is Ukraine’s legal and tax framework for IT companies. It provides simplified taxation, contractor flexibility, and structured employment conditions designed to support international tech companies operating in Ukraine.

Key features:

5% personal income tax for most contractors
9% exit capital tax or 18% corporate tax options
Legal framework for foreign IT companies hiring locally

FOP (Sole Proprietor) is a simplified contractor-based employment model widely used in Ukraine’s IT sector. Developers operate as independent contractors rather than employees.

Key features:

5% income tax
1% military levy
Fixed social contribution (~€40–50/month equivalent)
Common model for freelance and outsourced engineering work

Where is tech talent concentrated across Ukraine?

Ukraine’s tech talent is concentrated in a handful of strong regional hubs, each with a slightly different specialization. While Kyiv and Lviv dominate in scale, other cities add depth in defense, industrial tech, and product engineering.

Ukraine also ranks 42nd in the Global Startup Ecosystem Report, with a steady push to position itself as Europe's leading technology hub, especially in defense, agriculture, government, and AI.

Key tech hubs in Ukraine and what they’re known for:

City	Strength	Technology focus	Companies
Kyiv	The largest and most diverse hub and home to 42%-48% of the national tech workforce	Fintech, healthcare, AI and machine learning, product development, cybersecurity, and enterprise software	Global: Microsoft, Samsung (R&D), Google (R&D), Oracle, Deloitte, Ubisoft, Siemens, Visa, Mastercard, Palantir, Philips Healthcare, GE Healthcare, IBM Watson, Medtronic, Nvidia Local: Grammarly (major R&D), Monobank (fintech), Reface (AI), Ajax Systems, MacPaw
Lviv	Second-largest IT hub with a strong outsourcing and senior talent base; the Lviv IT Cluster pulls together firms, local government, and universities	Cybersecurity, AI and machine learning, custom development, DevOps	Global: IBM, GlobalLogic, Siklu, Gameloft Local: Lohika, Spendbase, BetterMe, UnderDefense
Kharkiv	Deep academic roots and a heavy tilt toward telecom and hard tech, with its own IT cluster	Complex, math-heavy software engineering, defense tech, cybersecurity, game development	Global: Grid Dynamics, Gameloft, Cisco Local: Argus, Finsoft, INSART
Dnipro	A strengthening specialist pool with a strong industrial and logistics background	DevOps, enterprise apps, industrial tech and IoT, logistics, outsourcing	Global: Zazmic Local: Perfsys, Yalantis
Odesa	A broadening startup and product scene, with Odesa IT Family actively promoting regional IT growth	AI services, greentech, maritime tech, SaaS, cybersecurity, mobile and web development	Global: Oracle, Snapchat, Rakuten Local: Readdle, KeepSolid, Augmented Pixels (R&D), adtelligent

What skills do Ukrainian tech professionals offer?

TypeScript, Python, and JavaScript dominate, confirmed by the 2026 dou.ua rankings and our own research (DOU is the go-to hub for Ukraine's IT community).

TypeScript comes out on top at nearly 21% and is trending upward, with broad use across software engineering, full-stack, and QA, especially for complex multi-page applications.

Python follows close behind as the language of choice for AI work, holding strong in DevOps and data analytics. JavaScript hangs in there for web and frontend, though TypeScript is steadily crowding it out.

Mobile technologies, Kotlin, Go, Swift, Dart, occupy a smaller slice, which is telling.

Ukrainian engineering talent is concentrated around desktop, full-stack, and distributed systems, the more architecturally demanding end of the stack. AI, machine learning, and data science are on a sharp upward trajectory, with defense tech and computer vision driving much of that growth.

Donut graph showing talent pool distribution by roles in Ukraine

Which industries drive demand for developers in Ukraine?

Ukrainian developers are tackling complex, high-stakes projects rather than routine tasks. With a strong, modern tech stack built for scale, particularly TypeScript, Python, JavaScript, AI/ML, cloud, and cybersecurity, Ukrainian teams consistently deliver architecturally demanding solutions, working on advanced challenges in AI, deep tech, miltech, and other sophisticated domains. Far from being “cheap extra hands,” they bring proven capability in high-complexity environments, operating as a cross-sector production layer embedded in global digital infrastructure.

Business productivity and enterprise software

Typical work: large-scale enterprise platforms (ERP/CRM/internal systems), SaaS product engineering, workflow automation systems, cloud migration and modernization, data infrastructure and engineering platforms, API ecosystems, enterprise integrations, and long-term platform maintenance for global clients.

FinTech and financial services

Typical work: payment systems, digital banking platforms, core banking infrastructure, fraud detection systems, trading and risk platforms, and regulatory compliance systems.

Cybersecurity, defense tech, and DevSecOps integration

Typical work: cybersecurity platforms, DevSecOps pipelines, secure communications systems, endpoint protection tools, cloud security architectures, threat detection systems, defense-tech software, drone software systems, encrypted communications, and dual-use industrial engineering platforms.

For a deeper look at real-world implementations and security delivery patterns in this space, see our selected enterprise cybersecurity case studies.

E-commerce and retail platforms

Typical work: large-scale e-commerce platforms, marketplace infrastructure, retail data systems, recommendation engines, search and discovery systems, inventory and logistics platforms, customer experience systems, and high-traffic transaction platforms.

Healthcare and medTech/digital health

Typical work: healthcare data platforms, patient management systems, medical imaging software, AI-assisted diagnostics tools, clinical data infrastructure, telemedicine platforms, wearable/IoT healthcare integrations, and regulatory-compliant healthcare software systems.

Edtech and online learning

Typical work: learning management systems (LMS), online education platforms, video-based learning infrastructure, content delivery systems, assessment engines, AI-based personalization for learning, and scalable multi-tenant education platforms.

Martech, advertising, and marketing platforms

Typical work: customer data platforms (CDPs), marketing automation systems, ad-tech infrastructure, analytics pipelines, personalization engines, attribution systems, CRM integrations, campaign management platforms, and high-volume data processing systems for marketing ecosystems.

What does it cost to hire developers in Ukraine?

Hiring developers in Ukraine typically costs 50–70% less than equivalent roles in Western Europe or the US, while maintaining comparable senior-level engineering output.

Senior engineers generally fall into the following total employer cost range:

Role	Seniority	Total employer’s cost (based on our 2026 market analysis)*
Software Engineer	Junior	€ 1,500 - € 2,300
	Middle	€ 2,300 - € 4,300
	Senior	€ 4,300 - € 5,800
	Expert	€ 5,800 - € 7,100
Cybersecurity Engineer	Junior	€ 2,300 - € 3,100
	Middle	€ 3,100 - € 4,900
	Senior	€ 4,900 - € 6,900
	Expert	€ 6,900 - € 7,900
Machine Learning/AI Engineer	Junior	€ 1,800 - € 3,100
	Middle	€ 3,100 - € 4,900
	Senior	€ 4,900 - € 6,900
	Expert	€ 6,900 - € 7,900

*Inclusive of social contributions, benefits, recruitment, onboarding, training, and retention costs.

What determines the final cost

Remuneration across Ukrainian IT has shifted around over the last few years, but the cost advantage has held firm. Ukrainian specialists tend to earn about half what their Western counterparts earn across comparable tech roles, with no corresponding dip in quality or output. That said, salary figures alone don't tell the full story.

Recruitment, onboarding, fringe benefits, taxes, and the ongoing HR overhead all stack up, and when you factor them in, the gap can widen further in your favor. At Nortal, we fold all of it in, so what lands on your desk is a clean monthly figure with no surprises tucked underneath.

For a full breakdown across the most common tech roles and a comparison with other key CEE markets, see our detailed market guide.

The realities of hiring developers in Ukraine

Cost is a powerful pull factor, but it doesn't work in isolation. Any company recruiting tech talent in Ukraine needs to walk in with eyes open, particularly if going it alone without local market knowledge.

A few recurring headaches worth flagging:

Global economic turbulence

Geopolitical chaos, AI disruption, and tech layoffs arriving in droves have made for an unsettled operating environment. Companies aren't necessarily bleeding revenue, but they're bracing for what might come, trimming costs and tightening up their workforce strategies.

With over 73,000 tech jobs cut globally in early 2026 amid ongoing cost-control measures and AI-driven restructuring, many companies are actively seeking more affordable, high-quality talent pools. That instinct toward optimization is precisely what makes markets like Ukraine worth a serious look.

War in Ukraine

The conflict has a real and ongoing impact on business, candidates, and the recruitment process. In the immediate aftermath of the Kyiv invasion, demand took a knock as companies held their breath and mobilization swept up large numbers of men. Some businesses pulled back, spooked about the durability of their Ukrainian operations. Yet what followed was more nuanced than the early panic suggested.

The war has hit the Russian market far harder, with as many as 1,500 global brands curtailing operations there, according to the Yale School of Management. Ukrainian demand has largely bounced back.

The conflict has also thrown up some unexpected byproducts: tech companies pivoting from vendors to critical infrastructure providers, consumer software and devices finding military applications, and a massive acceleration in real-world deployments of AI, machine learning, and data analytics. The net effect has been a sharpening of domestic tech capability, making Ukrainian talent more competitive, not less.

The purple squirrel problem

The global habit of over-specifying roles has turned hiring into a scavenger hunt for a purple squirrel (Harvard Business Review defines it best). When the requirements list runs long enough to describe a candidate who almost certainly doesn't exist, recruiters suffer, and timelines blow out.

This is a global trend rather than a Ukrainian peculiarity, but it's showing up here too, and it requires skillful navigation.

Domain expertise on top of technical depth

Companies have raised the bar on what they expect from candidates, and it's no longer purely about technical seniority. A senior AI engineer with years of fintech experience might get passed over because the product is in healthcare.

Industry familiarity now carries serious weight alongside hard skills, pushing more companies to cast wider nets beyond their home markets.

Ukraine’s broad cross-sector experience spanning medtech, fintech, cybersecurity, defense tech, agritech, and enterprise platforms positions it exceptionally well, as the IT Ukraine Association’s broad study confirms.

Ready to build or scale your engineering team in Ukraine with confidence?

Finding, vetting, and successfully onboarding engineers in an unfamiliar market is a slog at the best of times. Having a player who knows the legal, economic, HR, and political terrain at their fingertips can spare you a lot of expensive trial and error.

Our team has deep on-the-ground expertise and can give you a realistic assessment tailored to your needs.

How do employment models work in Ukraine?

Ukraine's employment and tax setup for the IT workforce is primarily structured around three engagement models:

standard employment contracts
contractor-based arrangements (FOP / sole proprietor)
Diia.City hybrid framework

The most important distinction in Ukraine is not salary level, but employment structure.

Under standard employment, companies bear higher social contributions and tax obligations. Under contractor-based arrangements, taxation is simplified and shifted to flat-rate systems, significantly reducing total employer cost. Because of that, most developers work as contractors rather than employees.

Diia.City sits between these two models, offering a regulated structure with lower taxes and clearer legal frameworks for international companies.

Out of the last two, the contractor route, which is far more common in tech, splits into two variants depending on registration type:

For a Diia.City registered contractor, the applicable rates are a 5% personal income tax, a 5% military levy, and a pension contribution of 1,902.34 UAH (roughly €440 pegged at 22% of the minimum wage). A $2,000 net arrangement works out to approximately $2,244 in total cost to the company.
For a standard sole trader (FOP), the tax rate drops to 5% of revenue generated, with a 1% military levy and the same 1,902.34 UAH pension contribution. The same $2,000 net salary comes out to around $2,164 in total employer cost.

The difference between the two contractor models is relatively narrow in cost terms. The Diia.City paths carry more legal structure and are generally the cleaner option for international companies that need audit trails and clarity on compliance.

Employment benefits and labor law in Ukraine

Mandatory employee benefits

Employment benefits are regulated under the Labor Code of Ukraine, and most of them apply to employment contracts rather than contractor arrangements:

Between 11 and 13 paid public holidays, in line with most European markets and close to the US federal holiday count.
Paid annual leave of at least 24 calendar days, typically accessible after six months of service. IT companies tend to offer higher pay, commonly 18 to 28 working days. Additionally, employees may take up to 7 days of unpaid leave for personal reasons or up to 3 years of unpaid leave for childcare, with job protection throughout.
Sick leave, seniority-scaled. 50% of the average salary for the first three years of service, 60% for three to five years, 70% for five to eight years, and 100% for eight years and above. The employer covers the first five days; the Social Security Fund picks up the cost from day six onward.
Maternity leave runs 70 days pre-delivery and 56 days post-delivery, extending to 140 days for multiple births or complications. It is state-funded and not borne by the employer. Meanwhile, paternity leave sits at 14 paid days, to be taken within three months of the child's birth, and is typically employer-funded.
Overtime at 200% of the regular hourly rate, no exceptions.

Notice period in Ukraine

Ukraine moves faster than most on the notice period, with just 14 calendar days’ notice on the employee’s side. This is short for European standards (usually a minimum of a month) and meaningfully compresses hiring timelines when backfilling roles. The flip side is that if the employer initiates termination for restructuring or redundancy, a minimum of two months' written notice is required. The war adds its own impact: under martial law, standard employment rules can be modified, and contracts may be suspended.

Supplemental benefits

Business travel has historically ranked as a major pull factor for Ukrainian tech candidates. However, again, under the war realities, most men of conscription age aren’t allowed to leave the country, which makes that benefit apply selectively.

Among other meaningful ways to compensate for employees’ time and efforts are training and education budgets, wellness support, learning platforms, performance bonuses, and extra vacation allowance.

How do you hire developers in Ukraine?

Through the same channels that work everywhere else, LinkedIn, referrals, community platforms, job boards, and dedicated people solution partners, with a few Ukraine-specific nuances worth knowing.

What hiring routes work best in Ukraine?

LinkedIn does its usual job here, but with a caveat: experienced Ukrainian specialists often have patchy or outdated profiles, particularly if they aren't actively hunting.
Dou.ua is the main source for Ukrainian tech hiring, a dedicated IT and tech job board with over 280,000 registered users and no noise from unrelated industries. If you're hiring in tech, this is where the focus is.
Djinni is a Ukrainian-founded recruiting platform with a transparent fee structure: 20% of a senior Ukrainian hire's monthly salary, 50% for foreign senior placements, and free for junior roles under $700 per month. Worth factoring into your cost model upfront.
Robota.ua, work.ua are Ukraine's general-purpose job boards, collectively housing upward of seven million resumes. Useful for broad reach, less so for targeted technical hiring where specificity matters.

Developers’ communities, forums, and events are a reliable, low-pressure way to spot and cultivate talent, and they run mostly on Discord and Telegram. Better suited to building a bench over time than filling a specific, scoped role on a deadline.
Recruitment agencies number over 200 by most counts and work well for general hiring. For specialized, technical, or bulk recruitment, they tend to run out of runway fairly quickly.

Hiring Ukrainian candidates via Nortal

Built on 25 years of experience, Nortal has developed a hiring approach that respects how Ukrainian professionals prefer to be approached, which turns out to matter quite a lot.

The process itself runs through four stages:

First contact through LinkedIn, email or contact provided in the resume. Ukrainian professionals do not welcome cold calls or outreach through personal social media profiles.
Recruiter screening (30-45 minutes) – A Microsoft Teams call to explore the role, the candidate's background, expectations, and where the two sides overlap.
Technical interview (60-90 minutes) – Conducted by a domain specialist, this stage tests the candidate's technical capabilities.
Post-screening client interview (30-120 minutes) – In practice, this often runs as an informal conversation via Telegram or WhatsApp, the two dominant messaging platforms. The goal is cultural and characterological fit, getting a read on how the candidate's personality sits alongside the team.

Some companies tack on a second client interview or a test task. Our considered view is to keep the process to four stages or fewer.

Longer pipelines bleed candidates, particularly strong ones who are fielding multiple offers. Test tasks are a particular friction point with Ukrainian professionals, especially at the senior level, where they tend to read as a signal of distrust rather than due diligence. Technical interviews carry far more weight and are the expected format.

If you're considering building a team in Ukraine, Nortal can help you structure a process that aligns with how local engineers engage, while keeping hiring efficient and predictable on the client side.

Learn more about hiring Ukrainian teams with Nortal

What to expect when working with Ukrainian developers

Діло майстра боїться. Work fears the master.

That old saying still maps surprisingly well to Ukrainian tech culture. Work is taken seriously, competence is respected, and outcomes matter more than visibility. This is not a “perform in meetings” culture. It’s a “ship and deliver” culture.

Ukrainian developers tend to be pragmatic, disciplined, and quietly high-performing. They won’t over-index on self-promotion, but they will consistently push work forward with a strong bias toward completion and responsibility.

Cultural aspects

Ukrainian work culture skews more conservative, collective, and hierarchical than its Western and Northern European counterparts, though younger generations are nudging that needle steadily toward more autonomy and flatter collaboration.

Authority is generally respected, ambiguity is uncomfortable, and vague direction tends to be pushed back. This can feel direct from the outside, but it tends to produce cleaner execution: fewer assumptions, fewer performative layers, more straightforward accountability.

There is also a strong collective orientation. Family ties, group cohesion, and long-term stability matter, and this has been reinforced by wartime realities. The result is a workforce that values reliability, consistency, and trust within teams.

From a cultural value perspective (e.g., the Shalom Schwartz framework), Ukraine sits closer to higher embeddedness (the overlap of collectivism and respect for authority) and a hierarchy-oriented orientation than many Western European markets, which translates into structured teamwork, respect for leadership, and strong execution discipline.

In practical terms, that translates to:

Exceptional execution quality, grounded in a strong preference for structure, clear requirements, and getting things right rather than getting them done fast and loose.

Cohesive teamwork, built on collective orientation, a natural inclination toward knowledge sharing, and genuine investment in shared outcomes.

Perseverance through hard problems, a long-term orientation that was already a cultural given and has been further tempered by years of operating under wartime pressure.

Deep respect for leadership, which works best when paired with clear goals, explicit encouragement of ownership, and a team culture where speaking up is encouraged.

What motivates Ukrainian tech professionals

These cultural patterns directly shape what Ukrainian developers look for in an employer.

Meaningful, challenging work. Ukrainian specialists choose roles where they're genuinely challenged. Projects involving high-stakes technology, new skill territory, or real experimentation with a clear purpose tend to win out over comfortable but static engagements.

Competitive salary. Ukrainian rates run well below Western benchmarks, but competitive compensation within local market proportions is a meaningful factor, particularly for professionals managing the financial weight of an ongoing war alongside their careers.

Flexible work environment. Complicated logistics and the realities of wartime life make remote and hybrid setups not just a perk but a practical necessity for many. Ukrainian developers tend to put in full effort and then some; in return, they ask that work adapt to their lives rather than consume them entirely.

Stable, secure future. In a landscape where very little feels certain, people gravitate toward employers who feel solid. Long-term project continuity, transparent communication, and the sense that a company will still be there next year all carry outsized weight in Ukraine right now.

Severance pay typically covers one month's salary, occasionally two.

One line you should never cross

Ukraine and Russia are at war. Over 1,500 global brands have curtailed or wound down their Russian operations since the 2022 invasion, and the conflict has reshaped professional allegiances in ways that run deep and aren't going away. Pitching Ukrainian candidates on Russia-based or Russia-funded roles is a non-starter, and mixing Ukrainian and Russian professionals in the same team is a serious misstep that will cost you trust, candidates, and credibility in the market.

Is Ukraine a sustainable long-term hiring market?

Yes. The market has remained structurally viable despite prolonged external pressure, supported by the depth of talent, cost efficiency, and continued global integration.

Ukraine offers a combination that is still rare in one location:

A large, senior-leaning engineering talent pool shaped by long-term export demand and recent wartime acceleration of digital transformation
A tech-oriented employment framework, including contractor structures and the Diia.City regime, designed to support international hiring
A cost level typically 50–70% below Western Europe and North America for comparable engineering profiles

The sector is export-oriented by design, globally integrated through delivery partnerships, and increasingly specialized in high-stakes domains like AI, cybersecurity, defense tech, and fintech.

At the same time, the risks are real and worth taking seriously: martial law, mobilization constraints, and an operating environment that demands flexibility and local know-how. But companies that have stayed the course – and many have – consistently report high engagement, low voluntary attrition, and a strong focus on execution, particularly on complex or high-responsibility work.

If you are evaluating Ukraine as a hiring market, it is less a speculative option and more a strategic one that depends on risk tolerance and delivery design.

We’ve been operating in this market for years and can give you a straight read on what’s realistic for your specific situation.

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