Minister of Economy Yulia Svyrydenko explained how the Investment Fund will work within the framework of the “minerals agreement” between Ukraine and the United States.
Svyrydenko and members of the negotiating team that worked on the agreement spoke about this in an interview with RBC-Ukraine.
According to Svyrydenko, over the next 10 years, the Fund will invest in Ukraine in projects related to critical materials, oil, gas, as well as infrastructure (ports and terminals).
In Washington, Yulia Svyrydenko signed one agreement – on the establishment of the Fund. It is this one that is to be ratified on Thursday, May 8. The remaining agreements will be of a commercial nature and will no longer be signed by the government. The signatory on the Ukrainian side is the Agency for the Support of Public-Private Partnerships (PPP), on the US side – the International Development Finance Corporation (DFC).
The document provides for the distribution of profits only after 10 years, until then – only investments and only in Ukraine. At the time of signing, the shares in the Fund in Ukraine and the United States are the same – 50/50. Further, there is an opportunity to make additional contributions.
On April 30, Ukraine and the United States signed an agreement on economic cooperation, which provides for the creation of an investment Fund. To launch it, it will be necessary to sign two more documents, the drafts of which are still being prepared. As early as May 8, the text of the agreement is expected to be ratified by the Verkhovna Rada.
The European Investment Fund (EIF) and the Danish Export Credit Agency EIFO have signed the first agreement under the European Union’s export credit guarantee program for Ukraine. This initiative aims to support European companies working with Ukraine and to strengthen Ukraine’s economic integration with the EU.
The signed guarantee — the first of 13 similar agreements being prepared in EU member states — provides financing of up to €20 million for export credit operations, enabling about 40 Danish companies to strengthen their presence in the Ukrainian market.
The EIF guarantee mechanism is implemented within the innovative “export credits” program supported by the InvestEU initiative of the European Commission.
“This export credit agreement — the first of thirteen — underscores the European Union’s commitment to a strong Ukraine within the European family. Securing trade links between the EU and Ukraine is a key factor in supporting the Ukrainian economy and deepening bilateral relations on Ukraine’s path towards future EU accession,” commented Nadia Calviño, President of the EIB Group.
“In 2024, according to Eurostat, exports from the EU to Ukraine amounted to €42.8 billion — 9.4% more than in 2023. This indicates that Ukraine remains a stable and important market for European goods, ranging from machinery and transport to pharmaceuticals and clean technologies. The export credit guarantee mechanism, implemented by the European Investment Bank Group and the European Commission, helps reduce risks for European companies. Through national export credit agencies, this instrument gives businesses confidence to work with Ukrainian partners and develop trade. This initiative supports Ukraine’s economy and facilitates our gradual integration into the EU single market. We appreciate this support and consider it an important contribution to recovery and development,” said Yulia Svyrydenko, First Deputy Prime Minister and Minister of Economy of Ukraine.
“I welcome the signing of the first €20 million agreement under the export credit guarantee mechanism for Ukraine — between the Danish Export-Import Fund and the European Investment Fund. Supported by the EU budget, this mechanism helps European businesses maintain and expand trade links with Ukraine. It is an important step forward toward deeper integration of the EU and Ukrainian economies — a key element of Ukraine’s EU accession process. We expect other member states to take advantage of this mechanism and contribute to the success of this important initiative,” stated Valdis Dombrovskis, European Commissioner for Economy, Productivity, Implementation, and Simplification.
This first agreement with EIFO launches a series of approximately 13 similar agreements across EU member states. Overall, the export credit program, which provides about €300 million in guarantees to support European small and medium-sized enterprises (SMEs) and mid-cap companies from the EU, received an application volume significantly exceeding the available funding just weeks after its launch in July 2024. This demonstrates high interest from European businesses.
“Ukraine’s fight for freedom is also our fight for freedom. Ukraine’s future lies in the West. Even closer economic integration is a powerful step in the right direction. Danish businesses have repeatedly demonstrated their leading role in Ukraine’s reconstruction process. This initiative paves the way for even deeper cooperation between Danish and Ukrainian companies. It provides real support to Danish companies wishing to work in Ukraine, while also extending a helping hand to their Ukrainian partners. This is an important contribution to shaping Ukraine’s future,” said Morten Bødskov, Denmark’s Minister for Industry, Business, and Financial Affairs.
Background
The European Investment Fund (EIF) is part of the European Investment Bank (EIB) Group. It supports small and medium-sized enterprises (SMEs) in EU countries by providing access to finance through a wide network of authorized financial intermediaries. EIF develops and implements equity and debt financing instruments that promote entrepreneurship, innovation, green and digital transitions, and job creation.
The InvestEU program provides long-term EU financing by mobilizing public and private investments. The program unifies EU financial instruments into a single architecture, simplifying access to financing and increasing its effectiveness. It consists of three components:
The InvestEU Fund (EU budget guarantee — €26.2 billion);
InvestEU Advisory Hub;
InvestEU Portal.
Its overall goal is to mobilize over €372 billion in investments between 2021 and 2027.
EIFO is Denmark’s national development bank and export credit agency. It operates in over 100 countries, with transactions exceeding €20 billion. EIFO offers financial solutions to support Danish companies, promotes the green transition, and invests in technology and Denmark’s defense industry. The agency actively cooperates with partners worldwide, including in Ukraine.
On February 12 in Bern, the Swiss Federal Council approved the Program of Cooperation with Ukraine for 2025-2028. It will be the first stage of long-term 12-year support for Ukraine in reconstruction, reforms, and sustainable development. In the framework of such a program, 1.5 billion CHF will be allocated for economic recovery, protection of the civilian population, and strengthening institutions.
Yuliia Svyrydenko, First Deputy Prime Minister & Minister of Economy of Ukraine, noted, “Swiss government declared its readiness for long-term support for Ukraine back in April 2024, announcing the allocation of 5 billion francs over the next 12 years. The approved Support Program for 2025-2028 is just the first stage of the implementation of intergovernmental agreements. During 2029-2036, the Swiss party will provide more than 3.5 billion francs for Ukraine”.
The cooperation program between Switzerland and Ukraine for 2025-2028 focuses on three main areas:
Economic recovery, which includes support for small and medium enterprises (SMEs), agricultural development, and infrastructure reconstruction, in particular in regions affected by hostilities.
Modernization of public services, including healthcare and education systems, development of public transport, power and water supply systems.
Protection of the civilian population, which includes humanitarian demining, documentation of war crimes, assistance in searching for missing persons, and strengthening human rights mechanisms.
In order to launch successfully the Program, Switzerland will cooperate with Ukrainian state authorities, the private sector, scientific institutions, and public organizations. It is planned that a third of the Program’s budget – ca. 500 million CHF – will be directed to the reconstruction of Ukraine in cooperation with Swiss companies. At the World Economic Forum in Davos, Ukraine, and Switzerland signed a Memorandum on the first 50 million CHF that Switzerland will allocate to its companies in order to support projects in Ukraine. Bids from business entities are currently being accepted. Implementation of selected projects is planned for July 2025.
Click here for details on the acceptance of proposals for reconstruction projects in Ukraine.
German business is ready to invest in the Ukrainian economy despite the war.
Ukraine joined the top 3 attractive countries for investment despite the war lasting for almost three years.
Eastern Europe is becoming increasingly attractive for German business. More and more German companies already investing or planning to invest in the region in the near future. Not least of all, this concerns Ukraine, as reported by Deutsche Welle.
The article highlights, “They [German entrepreneurs – ed.] treat Poland, Romania, and Ukraine as the most attractive countries for investment, followed by Hungary and the Czech Republic. A significant part of the projects planned for the Ukrainian market will be launched this year, despite the ongoing Russian aggression”.
Relocating production to Eastern Europe
The trend of relocating production to Eastern Europe is confirmed by a survey conducted by the international consulting company KPMG and the Eastern Committee of the German Economy, in which 133 companies operating in this region participated.
More than half of them (55%) believe that by the end of the decade, the importance of Eastern European countries for their business will increase. However, only 7% are skeptical.
Regarding investments in Eastern Europe, 42% of respondents reported that they have already budgeted for costs of establishment, expansion, or relocation of production to Eastern Europe in the 2025 budget, while 56% are planning to do so in the next 5 years.
Andreas Glunz, the KPMG representative, explained, “Well-known problems concerning investment climate in Germany are forcing local companies to move their production abroad. In such a case, the best direction is Central and Eastern Europe. German business has already made large-scale investments there, has studied very well local conditions, and at the same time remains close to its home country”.
In the respondents’ opinion, this region is attractive due to high domestic demand and qualified personnel. Meantime, low labor costs turned out to be only the third most important reason.
What attracts investors to Ukraine
The most unexpected result of the survey is the high interest in investing in Ukraine, despite the ongoing war.
Michael Harms, Executive Director of the Eastern Committee of the German Economy, emphasized, “It is especially noteworthy that Ukraine ranked third among the most attractive countries for investment. It shows the great economic potential of this country”.
Among 133 surveyed companies, one in five (21%) is already an investor in the Ukrainian economy, and slightly more than a third (35%) are planning to invest by the end of this year.
However, 41% of companies are planning to invest in the Ukrainian economy for the next five years, as they expect its accelerated joining the EU. This is almost the same number of companies as those planning to invest in Romania, and significantly more than in Hungary (35%), the Czech Republic (31%), and Bulgaria (22%).
Nicolai Kiskalt, Head of the Central and Eastern Europe Desk at KPMG Germany, noted, “Despite the war, more and more international and German companies are investing in Ukraine – a country with the potential to become an energy hub for the European Union, to turn into alternative production site and to play a vital role for European companies in IT and outsourcing”.
Meantime, two-thirds of German businessmen (67%) named political risks and lack of security as the main obstacles to investment in the region as a whole, while corruption and bureaucracy are much less of a concern for entrepreneurs; respectively, 38% and 31% of respondents treat them as a problem.
We remind that America and Europe are interested in Ukraine’s victory and its achievement of long-term economic success. Mike Pompeo, former US Secretary of State, now a member of the Board of Directors of the global telecom operator VEON and its Ukrainian asset – Kyivstar, believes that Ukraine’s Western allies should help it win the war and support its economic recovery and growth with strong investments.
The ports of Odesa and environs will be key to any significant post-war recovery in Ukraine. Already much headway has been made in the area of security.
There are many stories of resistance to the Russian invasion by the Ukrainians. Not only the soldiers at the front, but also the unknown heroes who continued to work in their place so that the State could continue to function. This is the case of the ports of Odesa, an essential artery for Ukrainian exports.
“Eighty percent of the country’s exports came out of the Ukrainian ports,” says Deputy Minister of Infrastructure Yuriy Vaskov, the man responsible for ports and river and rail transport from the beginning of Russia’s full-scale invasion until May 2024. Then he followed the fate of the Minister Oleksandr Kubrakov, dismissed by President Volodymyr Zelensky.
Together, Vaskov and Kubrakov founded the We Build Ukraine think tank in partnership with Boston Consulting Group, to define the strategic priorities of reconstruction and guide foreign investments in Ukraine.
“From the first day of the invasion in February 2022, Ukrainian ports were blocked by the Russian fleet,” Vaskov says, “and exporters looked for alternative routes, such as trucks and trains, but with profits close to ‘0’ due to non-competitive costs. On the other hand, the ports on the Danube, Izmail and Reni, increased their cargo movement 20-fold because they could cross the neutral waters of Romania.”
It was a partial solution, because the Danube seabed is not as deep as in seaports, so they can only work with flat-bottomed vessels with limited loads.
Then, in July 2022, there was the agreement to establish a grain corridor, known as the Black Sea Grain Initiative. Thanks to the diplomatic mediation of Turkey and the United Nations, the initiative lifted the Russian naval blockade of the ports of the Odesa region (though not in Mykolaiv) to allow the export of wheat and cereals. The 65 ships blocked for months in the ports were able to go out to sea again and exports resumed almost to the pre-war level.
It was then that the world became aware of the strategic value of Ukrainian agricultural exports, on which the food of 400 million people depends. That agreement lasted a year. But in the meantime, the losses inflicted on the Russian fleet due to attacks by Ukrainian maritime drones and missiles had cleared the sea of enemy ships. Since then, merchant ship traffic has resumed without having to negotiate with the Russians.
“The world became aware of the strategic value of Ukrainian agricultural exports, on which the food of 400 million people depends”
Among the officials who have remained in their posts, despite the personal risk, is Aleksey Myaskovsky, who for five years has headed the port authority that manages real estate and port services in Odesa. In the past three years, some of his employees have died because of attacks on the docks, but the workforce has remained in place, implementing safety regulations (shelters and working at a physical distance). As workers in critical infrastructure, 70% of the port employees are protected from military mobilization.
The Ukrainian economy depends on the seven ports in the region: three main ones around Odesa (the historic port, Chornomorsk and Yuzhny), three on the Danube (Izmail, Reni, Ust-Dunaysk) and one at the mouth of the Dnister (Bilhorod-Dnistrovsky). Despite the war, some of these ports have been privatized. Ust-Dunaysk and Bilhorod-Dnistrovsky were given in concession through a public tender to Ukrainian investors. But the Ukrainian government’s privatization policy does not stop. This year, two terminals in the port of Chornomorsk will be put up for grabs (the procedure for one terminal is already online) and as soon as the war is over, the cruise terminal in the historic port will be given in concession, where the burnt-out skeleton of the old Hotel Odessa, destroyed by missiles, stands tall.
According to Myaskovsky, the process of privatization of the maritime sector is now irreversible, due to Ukraine’s ambition to become a member of Europe. Law 4196-IX of February 2025 will transform all public companies into joint-stock companies – a process necessary to allocate more resources to ports. In the current system, the Ukrainian Port Authority (USPA) collects all the revenues for the services offered to shipping companies, but redistributes an infinitesimal part to maintain the infrastructure.
Merchant traffic today occurs thanks to the reduction of the risk of war and new insurance policies that shipping companies can buy.
“Security is the main problem of maritime traffic in the Black Sea,” says Arthur Nitsevych, founder of the law firm Interlegal, the largest in Ukraine for maritime law (50 lawyers), with offices in all the countries bordering the Black Sea, plus Greece and Cyprus.
From 2022 and almost all of 2023, no insurance policy for war risk available, Nitsevych explains. “Then, in November 2023, a London insurance company with a partial guarantee from the Ukrainian government offered a policy that initially cost 5% of the value of the cargo. Today it has dropped to 1-1.5%.”
However, the lawyer tells us, this insurance is voluntary, not mandatory. There are many ships owned by Turkey, Arab countries, and even Ukrainian owners, that accept the risk and sail without paying these expensive policies, to increase profits. They simply pay the policies required at an international level in each port, relating to the personnel and technical equipment of the ship.
“Security is the main problem of maritime traffic in the Black Sea.”
According to him, the reconstruction of Ukraine will lead to a further increase in port traffic because in addition to agricultural and mineral commodities there will also be construction materials. This will be a challenge for the Ukrainian port administration, which suffers from inefficiencies due to regulations defined by officials in Kyiv who often do not fully understand the economics of the port.
Regarding the economy of Ukraine, Vaskov predicts that the Ukrainian GDP will increase by 2.5-3 times in 15 years. To achieve this, a stable peace in conditions of economic security will be needed. It will be necessary to reopen the port of Mykolaiv, where there is a terminal of the Chinese operator COFCO, and from which the steel products of the Indian giant Arcelor Mittal departed. It is useful to note that Mykolaiv is already the object of the majority of Danish investments in Ukraine. And then we need to relaunch river traffic on the Dnipro, with the reconstruction of the Nova Kakhovka dam destroyed by the Russians.
The great strategic perspective for Ukraine is to hook up to the India-Middle East-Europe-Economic-Corridor (IMEC) project, the logistics corridor launched by India to connect to Central Eastern Europe through the Emirates, Saudi Arabia, Israel and the Mediterranean. Odesa could take advantage of this corridor by offering its rail connections to Poland, Lithuania and Estonia, to reach the Baltic Sea more quickly. It is no coincidence that the Polish European Commissioner has publicly announced Poland’s interest in investing in the port of Odesa. And Vaskov himself confirms that there are already projects with European partners to create new railway lines with the distance between the tracks used in Europe (Ukrainian railways have a wider gauge), to improve connections with European markets.
“The lack of a maritime strategy for Ukraine has always been its weak point.”
Ukrainian ports will play a decisive role in the revival of the economy, but on the condition that the government defines the maritime strategy of Ukraine.
“The lack of a maritime strategy for Ukraine has always been its weak point,” complains Roman Morgenstern, Director of Marketing and International Projects at Ukrferry. “In Kyiv there has always been a lack of knowledge of the port activity and the will to increase the role of Ukraine on the seas.” In this regard, the case of the Black Sea Shipping Company, known as BLASCO, is emblematic. With its independence, Ukraine inherited the Soviet merchant fleet, which with its 400 ships was the largest in the world. Due to a lack of expertise and a lot of corruption, that economic heritage was completely lost, between ship sales and scrapping due to lack of maintenance.
And yet, Odesa through its Maritime University and Naval Academy still graduates many professionals both for careers in the merchant navy and for shipping and logistics companies. An important asset for the future of Ukraine, which will be exploited to the fullest only thanks to a real maritime strategy.
NJJ Holding (“NJJ”), the investment firm founded and owned by Xavier Niel, the founder of leading European telco group iliad, obtained regulatory approval in March 2024 to acquire Datagroup-Volia, Ukraine’s leading fixed telecom and pay TV provider
Datagroup-Volia is 96.13% owned by a fund managed by U.S. private equity firm Horizon Capital, led by Lenna Koszarny, and 3.87% by Datagroup-Volia CEO Mykhaylo Shelemba.
Once the transaction has closed, the consortium led by NJJ intends to merge Datagroup-Volia with Lifecell, the country’s #3 and fastest-growing mobile operator. This would take place after regulatory approvals are obtained, resulting in 100% ownership of these Ukraine-domiciled assets.
The group plans to launch a significant investment program upon the completion of the transaction in Ukraine, with investments in network, licenses, equipment and expansion of fixed and mobile infrastructure in the country to accelerate future growth.
Post-closing, a fund managed by Horizon Capital and Mykhaylo Shelemba will invest in the combined entity to retain a minority position and be the local partner of NJJ in Ukraine.
The combined Datagroup-Volia-Lifecell entity will be led by Mykhaylo Shelemba, current Datagroup CEO, as Group CEO. Pierre Danon, Chair of the Supervisory Board, Datagroup-Volia, will serve in the same capacity for the merged entity.
This historic transaction is the first major investment by a new market entrant since the full-fledged invasion, as well as a significant investment in domestic infrastructure in Ukraine.
It is a landmark deal aimed at acquiring existing Ukraine-based telecom players and subsequently combining these into a platform for expansion, growth and investment, demonstrating that Ukraine can attract high quality investments regardless of the prevailing situation.
Transaction closing is subject to remaining regulatory approvals and other customary closing conditions.
NJJ, the investment firm founded and fully-owned by French tech and telecoms entrepreneur Xavier Niel, and Horizon Capital, led by Lenna Koszarny, a U.S. private equity firm investing primarily in fast-growing tech companies in Ukraine and Moldova via dedicated funds, and Mykhaylo Shelemba, Datagroup-Volia CEO and shareholder (together, the “parties”), have announced that regulatory approvals were granted in March 2024 for NJJ to acquire Datagroup–Volia, Ukraine’s leading fixed connectivity and pay TV provider. Once remaining conditions are met for the acquisition of mobile assets in Ukraine, trading under the Lifecell brand, the parties intend to create a national telecom champion, with the highest growth profile among peers, and the “operator of choice” for safe, secure and reliable telecom services in Ukraine.
The combined entity will provide mobile connectivity to nearly 10 million Ukrainians, while its fixed network will cover more than 4 million residences across Ukraine. The merger of Datagroup-Volia and Lifecell will also enable consumers to benefit from a triple play offer, bundling mobile, fixed connectivity and pay TV, improving quality of service, pricing and furthering the integration of European standards.
Xavier Niel, Founder of NJJ Holding, said: “I am pleased that we have achieved this major milestone with the regulatory approval for the acquisition of Datagroup-Volia, a significant step towards the creation of a national Ukrainian telecom champion, providing Ukrainians with safe, secure and reliable telecom services. Ukraine is home to an impressive tech sector with innovation in artificial intelligence, a high degree of digitalization and technological affinity. We are confident that our landmark transaction will serve as a signal to others that the time to invest in Ukraine is now, to support the rebuilding of the country and realize its potential. We look forward to working in the country and we are confident that our global telecoms activities, dedicated team and sector expertise, from France to Poland, from Italy to Sweden and the Baltics, will bring value to all stakeholders, including employees and customers, and to Ukraine as we work together to further develop the telecom offering, tech, artificial intelligence and other strategic areas of cooperation.”
Lenna Koszarny, Founding Partner and CEO of Horizon Capital, added: “We are delighted to attract Xavier Niel and NJJ to Ukraine, paving the way for a significant investment by a high-quality Western strategic in Ukraine’s infrastructure sector during historic times. Horizon Capital’s journey began in 2010 with the acquisition of a minority stake in Datagroup, then took a bold leap forward in 2016 after acquiring majority control. People make the difference at Horizon Capital and this deal is no exception. Attracting Mykhaylo Shelemba from McKinsey Dubai, recruited by Dmytro Boroday, Partner and beating out 17 candidates to assume the helm as Datagroup CEO in 2016, was truly game-changing. Under Mykhaylo’s leadership, Datagroup increased revenues 3.8 times and EBITDA 4.8 times in USD terms over five years, underpinning our confidence to raise our ownership to over 96%, and together with Mykhaylo Shelemba, fully control Datagroup’s destiny. Our vision to pursue a triple play, bringing fixed, pay TV and mobile together, was born in 2018 with the first meetings with Volia and Lifecell, and inspired by Xavier Niel, who is renowned as the French pioneer and visionary who over 20 years ago invented the Freebox – the world’s first triple-play box – bringing Internet to many households and mobile usage within reach. We completed the acquisition of Volia in June 2021, followed by a historic meeting with Xavier Niel and his team in Paris in December 2021, that has now culminated in this landmark transaction. To lead a deal of this magnitude and importance is the honor of a lifetime, and we are truly grateful to Xavier Niel and the NJJ team for their trust and partnership, and to the Datagroup-Volia and Lifecell leadership and teams for their excellence. We look forward to partnering with Xavier Niel and NJJ in the future, and are confident that this transaction will serve as a critical market signal, attracting new investments into Ukraine’s infrastructure and technology sectors and contributing to the country’s ongoing resilience, digitalization and growth.”
Mykhaylo Shelemba, CEO of Datagroup-Volia, added: “The merger of Datagroup-Volia and Lifecell will create a new champion in Ukraine’s telecom industry, combining two stellar assets with vast synergy potential. Expansion of the triple-play offering is expected to result in clear, tangible benefits for consumers in cost, convenience, and quality of service. Mutual integration of customer bases, improvements in cost-efficiency and business processes, as well as strengthening of network investment will allow us to offer even more attractive and competitive packages to our subscribers than both companies were able to provide on a standalone basis. This opportunity is only made possible through the bravery of Ukraine’s courageous defenders, protecting the country at this pivotal time, and the over 5,000 talented and dedicated management team and employees of Datagroup-Volia and Lifecell, who have demonstrated the utmost resilience and commitment to continuing to deliver high-quality services to Ukrainians every day, despite challenging circumstances. I thank Horizon Capital for their vision, trust and backing for the past eight years and look forward to embarking on this new, exciting chapter led by Xavier Niel and NJJ, undoubtedly one of the most visionary, experienced and trailblazing telecom investors globally. We are confident that this deal will start a new page in Ukraine’s telecom market and inspire others considering investing in Ukraine.”
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About NJJ Holding
NJJ Holding is the personal investment vehicle of Xavier Niel, a recognised entrepreneur and major long-term investor in the telecoms sector across the world.
He is also the owner of Iliad founded in 2002, which revolutionized the telecom market in France, ensuring that French consumers enjoy some of the lowest broadband rates in the developed world with its “Freebox”. In 2012, he launched Free Mobile offering no-strings-attached SIM card services. Iliad now being a leading telecoms provider present in France, Italy and Poland.
Overall, Xavier Niel has telecoms investments in more than 20 countries across the world, delivering mobile services to over a hundred million subscribers.
About Horizon Capital
Horizon Capital is the leading private equity firm in Emerging Europe with $1.6 billion in assets under management, from investors with a capital base of over $700 billion, raising over $800 million in growth capital in six years, including its latest fund, $350 million Horizon Capital Growth Fund IV, L.P. The firm’s investment strategy focuses on backing visionary entrepreneurs leading fast-growing, primarily tech and export-oriented businesses in Ukraine and Moldova. Horizon Capital-managed funds have invested in over 172 companies employing more than 80,000 people. Horizon Capital’s investment in Datagroup-Volia is held by Horizon Capital Growth Fund II, L.P.
About Datagroup – Volia
Datagroup and Volia is the national fixed line leader across key customer segments – B2C, B2B, and wholesale. The Company’s network covers over 4 million Ukrainian households in more than 100 cities, with over 35,000 kilometers of fiber infrastructure making it one of the largest networks in the country. The Company also offers a broad portfolio of value-add services to its clients, including cloud and cybersecurity for B2B customers, and IoT and OTT solutions for retail customers. With more than 2,000 institutional clients, the group is also a key partner of the public sector, collaborating with state bodies and agencies in the fields of finance, defense, and communications.
The Odesa region presents a portfolio of investment projects across key sectors — from renewable energy and agriculture to manufacturing, culture, and medical infrastructure. These initiatives aim to promote sustainable community development, improve quality of life, and attract private capital for the reconstruction and modernization of southern Ukraine.
EBRD deploys record amount of nearly €2.4 billion in Ukraine in 2024
Bank has deployed nearly €6.2 billion in Ukraine since full-scale war began in 2022
Across its regions, EBRD financing jumped to €16.6 billion from 2023’s record €13.1 billion
The EBRD prioritises support for energy security, vital infrastructure, food security, trade and the private sector in its work in Ukraine, counting both investments and trade finance in its deployed figure.
In 2024, the EBRD deployed a record €833 million of financing via partner financial institutions in Ukraine, including €472 million to support trade finance under its Trade Facilitation Programme. Portfolio risk sharing remained the main instrument for EBRD to deliver finance to Ukrainian businesses, with the EBRD remaining the leading provider of such guarantee facilities in the country.
The EBRD works with donors in Ukraine. Since 2022, the EBRD has succeeded in mobilising more than €2.6 billion in donor funds for Ukraine, including unfunded guarantees, of which nearly €1 billion was in 2024 alone. Leading donors since 2022 have been the European Union, United States of America, France, Norway and The Netherlands. In 2024, leading donors were the European Union, France, Norway, South Korea, Sweden and The Netherlands.
Following agreement in 2023 to increase the Bank’s paid-in capital by €4 billion to sustain support for Ukraine, the EBRD’s investment levels are expected to continue at around €1.5 billion a year, with potential for further increases when the time comes for reconstruction.
“Our shareholders have expressed enormous confidence in us by agreeing to a substantial capital increase for our activity in Ukraine and affected countries. I would like nothing more than for 2025 to be a year of reconstruction. This is where the EBRD can be at its best – using our financing knowledge and experience to build back better,” said EBRD President Odile Renaud-Basso.
Among highlights of EBRD work in Ukraine in 2024 were a highly innovative war risk insurance guarantee scheme designed to support trade despite the conflict; participation in a US$ 435 million telecoms deal that is bringing the country its biggest foreign direct investment in wartime; private-sector finance for postal services to Nova Post, pet food to Kormotech and bionic prosthetics to Esper Bionics; work on reintegrating war veterans into the economy, and major lending to the energy, infrastructure, banking and municipal sectors.
To mitigate the widespread electricity shortages Ukraine is experiencing as a result of Russian attacks on its power generation system, the EBRD focussed its energy investments on financing for decentralised small-scale generation capacity helping ensure uninterrupted energy supply to Ukrainian people and businesses.
EBRD energy financing has reached €2 billion since 2022, of which €639 million was signed last year.
The Bank lent €80 million to Ukrnafta, a Ukrainian state-owned oil and gas company, to finance supplying and installing a total of about 100 MW of small-scale gas-fired distributed power and co-generation capacities around the country and boost the resilience of the power sector.
The EBRD financed new players entering the energy generation market. A €180 million loan to Ukrainian Railways (Ukrzaliznytsia, or UZ) to install small-scale generators around the country, will finance the supply and installation of up to 270 MW of decentralised small-scale gas-fired power generation capacity.
Early in the year, the Bank also signed a €200 million loan package to Ukraine’s main hydropower generation company, Ukrhydrenergo, to mitigate the impact of repeated Russian attacks. An EBRD loan of €100 million backed by a concessional parallel loan of €100 million from Italy provided emergency support to restore and maintain the company’s electricity production.
A parallel approach for supporting the nation’s energy resilience was through partnerships with Ukrainian financial institutions. The €700 million Energy Security Support Facility (ESSF), launched in September, was designed to support investments in decentralised energy generation, energy storage, and energy efficiency projects of Ukrainian businesses, regional municipalities and households. In the first three months since the launch of this programme, the EBRD signed or approved €525 million worth of financing agreements with four partner banks.
The heating needs of Ukrainian municipalities were prioritised in loans of €50 million to Kyiv, €25 million to Kharkiv, as well as municipal lending to the cities of Kryvyi Rih, Mykolaiv and Lutsk. These will be used to provide liquidity for municipal district heating as well as water treatment and transport utilities.
With an eye to the country’s longer-term energy future, the EBRD also supported Ukraine’s ambitions for more renewable energy.
The Bank lent €60 million to fuel distributor Galnaftogaz for its first private biofuels investment in wartime, to support the domestic production of bioethanol, whose greenhouse gas emissions are 70 per cent lower than traditional fuel.
And it established a renewable energy joint venture with an experienced German solar energy company, GOLDBECK SOLAR Investment, to construct and operate new solar PV project in Ukraine.
In transport infrastructure, a separate €300 million loan to Ukrainian Railways will help the company upgrade its locomotives, to ensure stable and uninterrupted railway cargo operations for agricultural exports and critical imports as well as passenger services.
To improve road connections between Kyiv and its European Union neighbours, €267 million of an existing loan for road development was reallocated for emergency repairs on the M-06 road heading west to Slovakia and Hungary, which has experienced an upsurge in traffic in wartime.
Beyond financing, the EBRD continues to support Ukraine’s reform drive – a crucial step not only to unlock further investments from the private sector, but crucially, to progress on Ukraine’s aspiration to become an EU member.
Through the Ukraine Reform Architecture and the Business Ombudsman, the Bank has been working with government and public bodies on issues related to EU integration and alignment with EU regulation, while the digital procurement platform ProZorro has improved the transparency and efficiency of public procurement.
The EBRD is also helping Ukraine prepare to effectively absorb the vast financing that reconstruction is expected to bring. Together with the European Investment Bank (EIB) and the World Bank, it is helping ministries and agencies build institutional capacity and providing technical assistance in the State Agency for Restoration and Infrastructure Development of Ukraine to establish an effective Project Delivery Unit.
The EBRD’s overall financing in 2024 reached a record level of €16.6 billion, a jump of 26 per cent from the previous record of €13.1 billion in 2023. The Bank’s financial results are expected to be announced in the spring.
The German company Knauf has begun constructing a new plant in Ukraine to produce plasterboard and dry building mixes. The enterprise will be in the town of Borshchiv in the Ternopil region. The second plant has a designed capacity that will produce 30 million square meters of plasterboard and 320,000 tons of dry mixes annually. Total project investment will amount to €150M.
The first Knauf plant was built in the Kyiv region in 2006 and has operated there since. The Kyiv plant’s production capacity is about 25 million square meters of plasterboard and 200,000 tons of dry mixes. The Kyiv plant employs 425 workers, with almost half having moved from Russian-occupied Soledar in the Donbas.
The second plant in Borshchiv is home to Knauf’s main raw material base in Ukraine – a gypsum quarry, with explored reserves that will last for at least 20 years of operation.
It is noted that the company first officially announced the suspension of any investments in Russia and then its final withdrawal from the aggressor state’s market.
On April 22, 2025, Poland launched a state concessional lending program “Loan to Participate in the Reconstruction of Ukraine”. The program will provide at least PLN 250 million or approximately EUR 58.25 million for Polish companies investing and implementing business projects in Ukraine.
Under the terms of the program, the maximum loan amount per company is PLN 10 million (EUR 2.33 million), the interest rate is 2%, and the maturity is 12 years. Three partner companies of the Polish Bank Gospodarstwa Krajowego have started accepting applications.
“We are sincerely grateful to Poland for supporting businesses that are ready to participate in the reconstruction of Ukraine and invest in our economy. Thanks to the state program “Loan to Participate in the Reconstruction of Ukraine”, Polish companies will receive preferential funds to invest in the recovery of Ukrainian infrastructure. These funds can also be used for services related to the preparation of feasibility studies or investment projects, organization of logistics and development of bilateral trade. This is an important contribution to our recovery, as it will be based on the private sector,” said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.
According to the terms of the program, concessional loans can be used for investments and working capital expenditures to support the reconstruction of the Ukrainian economy, development of exports and imports and cooperation between Ukrainian and Polish enterprises.
The funds can be used for the following:
transportation, storage and logistics of goods and services for the population and construction materials, equipment, technologies and other resources necessary for the project implementation;
development of enterprise resources in order to participate in the reconstruction and improvement of Ukraine’s infrastructure (including roads, railways, energy, water supply, public and residential construction);
preparation of feasibility studies, research and investment projects;
financing the activities of medical companies, including the manufacturing of products such as prostheses and bandages intended for Ukraine;
importing services and products from counterparties from Ukraine;
providing goods and services to companies involved in the reconstruction of the Ukrainian economy, directly supporting their activities.
In addition, concessional lending can be used to finance the purchase of real estate in Poland if it is closely related to the purpose of the investment, e.g. construction of a warehouse, factory, workshop or plant. Additional preferences are available for certain industries and investments.
Background Information
The Bank Gospodarstwa Krajowego is the administrator of the state program of preferential lending “Loan to Participate in the Reconstruction of Ukraine”. It implements the program together with three financial partners:
Bank Ochrony Środowiska SA;
Society for Social and Economic Investments SA;
Consortium: Lublin Development Foundation and Biłgoraj Regional Development Agency SA.
