The Ukrainian Parliament is set to ratify a landmark agreement that establishes the legal framework for the Polish Development Bank – the Bank Gospodarstwa Krajowego (BGK) – to operate fully in Ukraine. This move is designed to accelerate Ukraine’s recovery by providing a direct channel for financial and technical assistance to both public and private sector entities.
Key financial tools to be made available
BGK’s mandate will cover a broad range of instruments intended to reduce the friction of doing business in a wartime environment. These instruments include:
Direct funding: Loans, grants, and export support available in EUR, USD, and other currencies.
Bank guarantees: Unconditional, irrevocable, first-demand guarantees for banks operating in Ukraine.
Technical assistance: Capacity building and institutional strengthening for both state and private companies.
Broad operational power: BGK has the authority to negotiate contracts, issue financial instruments, and hire personnel directly to implement projects.
Wartime solutions: addressing business pain points
The agreement with BGK specifically targets the “bankability” of projects during martial law by addressing three critical hurdles:
De-risking for local banks
Local banks are often hesitant to take on performance or payment exposure during the war. The agreement will attempt to address bank de-risking in the following ways:
Collateral recognition: BGK-issued guarantees (backed by the European Commission or Poland’s Ministry of Finance) are intended to be treated as high-quality eligible collateral for Ukrainian banks.
Regulatory alignment: the National Bank of Ukraine (NBU) is expected to recognise BGK-backed exposures in its prudential calculations, aligning with EU-style frameworks.
Benefits: the above policies will increase the willingness of local banks to finance transactions and can lead to better pricing and longer loan tenors for corporate borrowers.
Currency convertibility & transfers
One of the largest constraints in wartime is the ability to convert the Ukrainian Hryvnia (UAH) to hard currency and remit it abroad for debt service or supplier payments.
Priority access: the agreement establishes a specific regime for BGK and its beneficiaries to purchase foreign currency and transfer it outside Ukraine.
Cross-border servicing: transfers will be facilitated by servicing banks to BGK accounts outside Ukraine using prevailing market rates.
Benefits: the above significantly reduces “convertibility risk” for international investors and suppliers.
Streamlined procurement
Although standard public procurement can be slow, projects supported by BGK will follow its procurement procedures.
Speed and integrity: these procedures are aligned with international development finance practices, which are typically faster and more standardised.
Benefit: using BGK procurement procedures will be critical for time-sensitive wartime reconstruction where speed is as important as transparency.
Business takeaways
For more information on Ukraine’s agreement with the BGK, contact your CMS client partner or the CMS experts who contributed to this article: Ihor Olekhov.
If Ukraine neither opens the market nor attracts global capital in 6-8 months, the world will build this industry without it.
Anton Melnyk, co-founder of the defense fund MITS Capital, announced it at the Radio NV event “Defense Industry 2026. Efficiency, Development, Scalability”.
He noted, “As one famous person said at the end of last year: Either we change or we perish. We have started to change a little bit and that’s good. But today I will say by myself: either we change quickly, here and now, or we will all perish again this year. We don’t have much time. In fact, we have just six months for our defense industry. Maximum eight months… we have not enough time”.
Mr. Melnyk said, foreign partners already have a head start. Co-founder of the defense fund MITS Capital added, “If they don’t come here, if they neither create joint ventures nor invest, they’ll just copy and do it themselves”, having emphasized that either we’ll tie them down or they’ll do it without us.
As for exports, Mr. Melnyk noted that technical problem of exports can be solved in hours. He highlighted, “It’s technically and administratively closed. It can also be technically and administratively open”, having noted that it doesn’t matter how it happens: either through the State Export Control Service of Ukraine or through Defence City. Co-founder of the defense fund stated, “It’s important that the system is as open as possible”.
He also highlighted that a closed market kills investment, “It’s not just about leftover production. It’s about startups and companies that have grown into manufacturers of components and technologies. They need investment stability”, having noted that if an investor sees a closed market, he will not invest.
Mr. Melnyk emphasized, “Now either superstar foreigners or patriotic Ukrainian funds are investing. But this is not systemic capital”.
He says that the Ukrainian defense industry needs three key resources: time, people and money. “There is no time. People still left. There is enough money worldwide, we need it but for this purpose we need a world market”.
Regarding defense technologies, Mr. Melnyk noted that Defense Tech will grow in the next 20 years and transform into robotics within 10 years. Ukraine has received a technological and entrepreneurial explosion. Co-founder of the defense fund MITS Capital warned, “This chance can be lost”.
Regarding global players in the worldwide defense industry market who are already copying Ukraine, he stated: “Partners come, look, copy. FPV, which they used to laugh at, is now being made by Americans and they are proud of it”, having emphasized that there is not enough time for this.
He also stated that a technological race is underway at the front. “The enemy is using drones-queens, strikes hundreds of kilometers away, Lancets. We see long-range strikes in the rear”.
Speaking about urgent decisions, he emphasized, “Decisions need to be made in the coming months. I hope Mykhailo Fedorov will speed up this process”. He also noted that even without actual exports, an open market changes the investment logic.
In respect of joint ventures, Melnyk highlighted: “NATO has a longstanding practice in joint ventures between the countries. We need to do the same, from small to large companies”.
Finally, co-founder of the defense fund emphasized, “The USA is closing the component market. China may limit supply of engines and magnets. If this happens, FPV may run out in three months. Therefore, we need to diversify engines, magnets, missiles, heavy equipment and others. We need a comprehensive military industry. We have no time. We need solutions now”.
Today, on January 20, the German Power Company Notus Energy and American & Ukrainian Investment Company Horizon Capital signed the agreement on financing joint project aimed at construction of a wind farm in Odesa region with capacity of 124 MW. In addition, Horizon Capital announced initial closing of its Horizon Capital Catalyst Fund focused on reconstruction.
Both agreements were signed at the World Economic Forum in Davos in the presence of Oleksii Sobolev, the Minister of Economy, Environment and Agriculture of Ukraine.
Previously, Horizon Capital successfully launched the Horizon Capital Catalyst Fund (HCCF) aimed at supporting recovery and reconstruction of key sectors of the Ukrainian economy. At the first closing stage, the Fund attracted €152 million, i.e. over 50% of the target size equal to €300 million. In particular, the Fund focuses on sectors that are critical for reconstruction of the country and those that require significant private capital investments, namely energy, digital infrastructure and construction.
Now, jointly with announcement of the first closing, the Fund has completed structuring of its first investment –construction of a wind farm in Odesa region, being developed by the German energy company and developer Notus Energy.
Oleksii Sobolev noted, “I congratulate Horizon Capital and our partners – IFC, EBRD, Proparco, Swedfund, Norfund and FMO – on the first closing of Catalyst Fund. This is a signal to the world: we are not waiting for end of the war in order to rebuild the country. Strategic partnership with the German company Notus Energy is also important, in particular, when Ukraine lost over 60% of its generating capacity due to constant shelling. The presence of such large players in Ukraine shows that Ukraine is capable of attracting large international capital even in the wartime”.
Structure of the deal provides the following:
• Catalyst Fund receives 45% in the project and provides a corresponding share of equity for construction.
• Notus Energy holds a controlling stake and acts as the lead investor in the deal: it finances the remaining required equity and is liable for construction and further operation of the facility.
• Total project budget exceeds €220 million and provides a significant amount of debt financing from international IFIs and DFIs, including with EBRD, IFC, Swedfund, BIO and Green for Growth Fund (GGF). In particular, the project in Odesa region is the first of three wind farms in Notus Energy portfolio for Ukraine, with aggregate capacity of ca. 300 MW, as well as a part of broader portfolio of renewable energy development in Ukraine with capacity over 1.3 GW under the projects at various stages.
This summer, Visa appointed Tareq Muhmood as its new Regional President for Central and Eastern Europe, the Middle East, and Africa (CEMEA). With more than 30 years of international experience across major financial institutions in 13 countries, Muhmood is a heavyweight in the payments industry.
During his first visit to Ukraine in the new role, he spoke with NV about the evolution of the Ukrainian payments market, the strength of local partnerships, and priorities for the years ahead.
Tareq Muhmood,
Regional President of Visa in Central and Eastern Europe, the Middle East, and Africa (CEMEA)
You have extensive international experience and are now overseeing 86 diverse markets. How does Ukraine compare, and what impresses you most about its payments sector? How crucial is the market to Visa’s strategy? As a global digital payments leader, what is Visa’s role in the Ukrainian financial system?
Ukraine is exceptional. Across 86 markets, few demonstrate the same combination of resilience and innovation. Even under extraordinary circumstances, Ukraine’s payment system didn’t just endure — it advanced. That speaks volumes about the people driving this progress.
For Visa, Ukraine is far more than a single market; it’s a strategic hub supporting operations in 17 neighboring countries. Our role is to ensure payments remain uninterrupted, whether through AI-powered fraud prevention or cloud-based solutions that guarantee continuity during crises. Ultimately, it’s about trust and reliability for millions of Ukrainians, and that commitment is at the heart of everything we do.
Small and medium-sized businesses in Ukraine are actively switching to cashless payments: according to Visa, 75% of SMEs reported revenue growth after starting to accept digital payments. How does Visa support Ukrainian businesses in their transition to electronic payments, and what solutions do you offer for SMEs?
SMEs are the backbone of every economy — globally, they represent 90% of businesses. Our mission is to make digital payments simple, secure, and affordable for them. One solution I’m particularly proud of is Visa Tap to Phone, which transforms any smartphone into a payment terminal without extra hardware. In Ukraine, this has been a lifeline, especially during power outages, allowing businesses to keep accepting payments when traditional systems fail.
We also offer Click to Pay, which removes friction from online shopping by eliminating the need to enter card details repeatedly. This boosts convenience for consumers and conversion for merchants without adding costs. Earlier this year, Ukrainian VST Bank became the first in CEMEA to launch Click to Pay for its cardholders — a milestone that underscores Ukraine’s leadership in digital commerce.
Open banking, artificial intelligence, biometrics — which global trends are most relevant for Ukraine, and how is Visa advancing them?
Ukraine is at the forefront of digital transformation, so these trends are highly relevant.
Open Banking: Launched in August, it will enable faster access to financial products and better payment experiences while accelerating Ukraine’s integration with Europe. Visa is working with banks and fintechs to ensure services meet EU-level standards from day one.
Artificial Intelligence: AI is reshaping commerce globally. We recently introduced Visa Intelligent Commerce, opening our network to developers building AI agents that can shop and pay autonomously. In October, we launched the Trusted Agent Protocol for secure communication between these agents and merchants. Ukraine’s strong tech ecosystem positions it as an early adopter of agentic commerce, and Visa will continue investing in tools and partnerships to help local developers compete globally.
Biometrics: Password-free authentication is the future. This year, Visa introduced Visa Payment Passkey in Ukraine, enabling consumers to authenticate online payments using device biometrics. Given Ukraine’s digital maturity, we expect biometrics to become standard very soon.
Trust in digital payments is essential. How does Visa ensure Ukrainians feel safe using cards and mobile wallets?
Security is non-negotiable. Visa uses multiple layers of protection, starting with Visa Token Service, which replaces card numbers with unique tokens — a technology that’s been in Ukraine since 2016 and has made online payments safer and easier. Globally, we’ve issued over 12 billion tokens.
We also deploy more than 100 AI models to detect fraud and operate a dedicated Visa Scam Disruption team, which prevented over $1 billion in attempted fraud in its first year. Beyond technology, education matters: our Visa Stay Secure campaign helps consumers protect themselves online. Together, these efforts create a payment environment where Ukrainians can transact with confidence.
Visa is known for strong partnerships. During this visit, you have likely had many personal meetings. Which players are you collaborating with to develop Ukraine’s digital payment system?
Partnerships are the foundation of Visa’s success in Ukraine. During my visit to Kyiv, I met with leading banks and Minister Mykhailo Fedorov to reaffirm Visa’s unwavering support for the country’s digital future.
We collaborate closely with banks, merchants, fintechs, and telecom operators to deliver cutting-edge payment solutions. Our strategic partnerships with the Ministry of Digital Transformation and the Ministry of Economy drive cashless adoption and SME digitalization. Thanks to these collective efforts, cashless payments in Ukraine reached over 65% by value and 95% by number of transactions in the first nine months of 2025.
And Ukrainian innovation extends beyond its borders. In June, we partnered with ProFIX Group to expand Visa Direct capabilities across CEMEA — a powerful example of Ukraine shaping the future of payments regionally.
How important is social impact for Visa? What initiatives are underway in Ukraine and beyond?
Social impact is central to Visa’s mission of uplifting everyone, everywhere. Globally, the Visa Foundation invests $200 million to support gender-diverse and inclusive small businesses. Locally, our commitment spans many initiatives. We’ve championed initiatives like She’s Next, and today we support the “Vidvazhna” female business accelerator with the Ministry of Digital Transformation. Women entrepreneurs are keeping Ukraine’s economy strong during the war, and their resilience is inspiring.
Another example is our support for the nationwide social franchise of mobile rehabilitation units. Together with Oschadbank, PrivatBank, and public sector partners, we’ve helped open ten such spaces across Ukraine, providing essential rehabilitation services to people affected by the war. Seeing these units help thousands rebuild their lives reminds us why social impact matters.
What are Visa’s strategic priorities for 2026 and beyond in Ukraine and the region?
By 2030, our vision is effortless payments, whether buying a coffee, running a business, or sending money across borders. To achieve this, we’re focused on three priorities: consumer payments, money movement, and value-added services.
Consumer Payments: Making every transaction seamless and secure through tokenization and advanced authentication.
Money Movement: Expanding capabilities across B2B, B2C, and G2C flows to help organizations move funds faster and more efficiently.
Value-Added Services: Delivering fraud prevention, data analytics, marketing, and consulting to help partners grow in an increasingly digital economy.
In addition to business objectives, we have a priority of investing and growing our talent whilst ensuring what we do makes a very positive impact on the community.
Ukraine’s pace of innovation is remarkable, and Visa is committed to supporting it every step of the way.
The material was published in the special project issue of NV magazine and The Economist, No. 9/2022, ‘The World Ahead’
The Ministry of Defense has submitted a package of regulations to the Government for consideration to launch a special legal regime, the Defence City. This will provide state support for defense enterprises.
Defence City is a legal environment to support defense manufacturers and decriminalize order disruption. The initiative replaces the old list of defense companies with a single Defence City Register, which will be managed by the Ministry of Defence. Resident companies will receive a special status and 10-year tax breaks. In particular, they will be exempt from income tax (subject to reinvestment), as well as property, land and environmental taxes.
«Defense City is a modern model for the development of the defense industry, which allows for a faster response to the needs of the front and attracts international investments. The main idea is simple: tax support in exchange for the development of production, modernization, new technologies and research,» said Defense Minister Denys Shmyhal.
He added that Defence City will promote the development of Ukraine’s leading defense industry enterprises and open «the way to joint production and technology transfer with our partners.»
The package of regulatory acts submitted by the Ministry of Defense should ensure the launch from January 5, 2026. Shmyhal noted that he expects the relevant decisions to be adopted at the next Government meeting.
IBA Annual Conference Toronto 2025, Tuesday 4 November
A thought-provoking session titled ‘Rebuilding Ukraine – opportunities for lawyers and their clients’ took place at the recent IBA Annual Conference in Toronto. Lasting over an hour, the session explored how the international legal community can play a pivotal role in shaping Ukraine’s legal system and supporting its sustainable post-war recovery.
The panel brought together a distinguished group of experts with thorough knowledge of Ukraine’s legal, economic and geopolitical landscape. Anna Babych, partner at AEQUO (Kyiv, Ukraine), chaired the session, guiding a discussion enriched by diverse perspectives. The speakers included Daniel Bilak of Kinstellar (Kyiv, Ukraine), who shared insights on governance, legislative reforms and his unique experience as a practitioner; Roman Dubczak from CIBC Capital Markets (Toronto, Canada), offering a financial and investment viewpoint; Zenon Potoczny of the Ukrainian World Congress (Etobicoke, Canada), emphasising global advocacy and diaspora engagement; and Roman Shimonov, CEO of Roshel Defence Solutions (Brampton, Canada), addressing the role of industry and security in the war (and future reconstruction) efforts.
The discussion centred on broader legal challenges and opportunities arising from Ukraine’s current challenges and future reconstruction efforts. The session’s chair has provided the following review:
‘I had the privilege of moderating the panel dedicated to Ukraine’s rebuild. The discussion brought together leading experts who are actively shaping Ukraine’s recovery. We explored how global business and legal communities can contribute to rebuilding a modern, resilient economy while supporting Ukraine’s long-term stability, with particular focus on Canada’s role and businesses in it.
A key focus of the conversation was the creation of a predictable, secure and investor-friendly environment. Panellists emphasised the importance of clear legal frameworks, risk-mitigation tools and international financial guarantees to attract both institutional and private capital. The discussion highlighted successful examples of early investments and underscored the crucial role of public-private partnerships in driving reconstruction at scale. In particular, the business case of Roshel, Canadian producer and importer of armoured vehicles into Ukraine and its business operations in the Ukrainian environment, demonstrated opportunities of the momentum and development of industrial capabilities in Ukraine at a larger scale.
Special attention was given to the rapidly developing defence and security industry, one of the fastest-growing sectors in Ukraine today. We addressed the unique regulatory, compliance and technological considerations involved, as well as the opportunities for international collaboration and innovation. The panel concluded that Ukraine’s recovery is not only about rebuilding infrastructure but also about strengthening strategic industries. Ultimately, Ukraine’s sustainable reconstruction is inseparable from the success of its defence sector, which ensures security, supports innovation, and creates the conditions necessary for the long-term economic growth of Ukraine and the whole Europe along with that trend.’
— Anna Babych, AEQUO, Kyiv
The session emphasised that Ukraine’s recovery is not only a political and economic challenge but also a legal one. Lawyers and law firms worldwide have a unique opportunity to contribute their expertise in creating a robust framework for justice, governance and sustainable development, while facilitating investment and economic development, which will be essential for rebuilding infrastructure and fostering growth.
As the world’s leading organisation for the legal profession, the IBA and its members are uniquely positioned to support Ukraine’s legal transformation. Through knowledge-sharing, capacity-building and advocacy for the rule of law, the IBA can help ensure that Ukraine’s reconstruction is grounded in strong legal principles. By mobilising expertise across jurisdictions and practice areas, IBA members can play a decisive role in shaping a fair, transparent and resilient legal system – one that not only addresses the immediate challenges of post-war recovery but also lays the foundation for long-term stability and growth.
As a Portuguese lawyer attending this session, I left deeply impressed and moved by the strength of the convictions shared by the panellists and inspired by their message of hope. In the midst of very difficult times, the resilience and determination of the Ukrainian people stand as a powerful reminder of the role that law – and those who practice it – can play in safeguarding justice and enabling recovery. This discussion was not only about legal frameworks and investment strategies; it was about courage, solidarity and the belief that rebuilding Ukraine is a collective responsibility. For me, it reaffirmed that the international legal community has the moral imperative to help Ukraine transform adversity into a foundation for lasting peace and prosperity.
The ProZorro system currently lacks the necessary functionality to conduct complex, multi-stage tenders.
The Ukrainian Cabinet of Ministers has updated Resolution No. 909 of 20 August 2021, which establishes the rules for holding tenders to select investors in public-private partnership (PPP) projects. This technical amendment aligns the resolution with the new Law on Public-Private Partnership, which came into force on 31 October 2025. The law stipulates that, from 1 January 2027, all tenders and competitive dialogue procedures must be conducted exclusively through the ProZorro electronic public procurement system.
According to the Ukrainian Ministry for Development of Communities and Territories, the ProZorro and ProZorro.Sales systems currently lack the necessary functionality to conduct tenders under the new law. The ministry expects the development of this technical solution and the launch of an electronic trading system for such tenders to be completed within the next 12 months.
The new law also requires the government and ministries to update all bylaws within a year. There are over 30 such documents, and full implementation of the law is impossible without adapting them.
Currently, international partners, including the EBRD, the IFC, and the World Bank, are involved in the drafting of these acts. They are providing expert and technical support to the Ministry for Development of Communities and Territories and the Ministry of Economy.
The first PPP project being prepared by the ministry concerns the container terminal at Chornomorsk Port. It will be conducted using the competitive dialogue procedure, which is in two stages: prequalification and selection of the best proposal.
Prequalification will ensure that only investors with proven experience in managing large-scale infrastructure facilities and sufficient financial capacity are eligible to take part in the tender. Companies under sanctions, registered in offshore jurisdictions, undergoing bankruptcy proceedings, or linked to the aggressor state will not be eligible.
A tender commission, including representatives from relevant ministries, the local Chornomorsk community, and trade unions, will then determine the best proposal.
The EBRD and the IFC have already engaged leading international advisors to help prepare the tender documentation. According to the ministry, this will ensure a transparent process and compliance with the best global practices.
As previously reported, the Ministry for Development of Communities and Territories held a meeting of the tender commission in November to select an investor for PPP projects involving two terminals at the Chornomorsk port. During the meeting, commission members approved a draft instruction for prospective participants. The document outlines the key requirements, the participation rules, and the application submission procedures.
The final version of the instruction, which will be included in the tender documentation, was also approved. In addition, the commission reviewed and approved amendments to the strategy for implementing and conducting the concession tender under the competitive dialogue procedure.
The updated strategy incorporates proposals from commission members and consultants engaged by international financial institutions, and it clarifies the stages of the project’s further implementation.
According to First Deputy Prime Minister and Minister of Digital Transformation Mykhailo Fedorov, Ukraine accounts for one-third of all early-stage DefenceTech investments in Europe.
Ukraine — the European leader in early-stage DefenceTech
Dealroom reports that DefenceTech companies across Europe and the United Kingdom raised a combined $200 million in early-stage funding (Pre-seed, Seed, Series A) in 2025.
Ukrainian startups have become the key beneficiaries of this growth:
the number of deals has more than tripled since 2022;
the average round size increased from $200,000–400,000 to $2.5–5 million;
interest from U.S., U.K., Polish, and Baltic investors has surged due to the proven battlefield effectiveness of Ukrainian technologies.
Highest-funded Ukrainian DefenceTech companies in 2025
According to Fedorov, the largest rounds were raised by:
Swarmer — $15 million (autonomous FPV drone swarms);
Tencore — $3.74 million (UAV detection and tracking systems);
Dropla — $2.75 million (software for UAV command, control, and unit coordination);
Teletactica — $1.5 million (next-generation radio systems and situational awareness tech);
M-fly — $1.3 million (tactical VTOL drones);
Norda Dynamics — $1 million (sensors and control modules for precision weapons).
Additional insights
Several Ukrainian DefenceTech solutions are already scaling abroad, including to NATO countries such as the U.S., Poland, and Lithuania.
According to Defence iQ, Ukrainian DefenceTech is among the top three fastest-growing DefenceTech ecosystems globally, alongside the U.S. and Israel.
The Ministry of Digital Transformation estimates that more than 200 Ukrainian companies operate in drones, robotics, AI, electronic warfare, and tactical systems.
Brave1 — the largest angel-stage DefenceTech investor in Ukraine
Fedorov emphasized that the government-backed Brave1 initiative remains the largest early-stage investor in Ukrainian DefenceTech. Since its launch, the platform has:
funded over 360 projects,
awarded more than $7 million in grants,
helped dozens of teams obtain certification, achieve production standards, and enter international markets.
The government is also strengthening cooperation with venture funds, including Polish and Estonian investors and several U.S. family offices.
Development of the startup ecosystem
The Ukrainian Startup Fund (USF) was established in 2019. Before the full-scale invasion, it invested $8.2 million in 352 teams, mostly through grants of $25,000–50,000.
After February 2022, the fund shifted entirely to DefenceTech, launching a grant program of up to $35,000 for defence and dual-use solutions in 2023–2024.
In 2024, USF partially resumed support for civilian innovation: the total budget of the renewed program is $2.5 million.
Market insights
According to the Ministry of Digital Transformation, Ukraine has 60 startups per 1 million people, compared with the European average of more than 500.
At the same time, Ukraine shows the fastest growth in Europe in the DefenceTech sector.
Norway’s Ukraine Investment Fund, managed by Norfund, is investing USD 15 million in the Rebuild Ukraine Fund (REBUF), managed by Dragon Capital, to help address the shortage of equity capital for Ukrainian businesses.
The ongoing war has severely constrained investment activity, leaving small and medium-sized enterprises (SMEs) without the resources needed to grow, create jobs, and contribute to Ukraine’s economy. SMEs are employing over 60% of the workforce in Ukraine.
The Rebuild Ukraine Fund targets a total size of USD 250 million and will focus on majority investments in resilient businesses across sectors such as consumer goods, healthcare, manufacturing, and technology.
“As in Norway, small and medium-sized enterprises form the foundation of Ukraine’s economy. This investment strengthens these businesses, enabling job creation, resilience, and reconstruction during wartime,” says Åsmund Aukrust, Norway’s Minister of International Development.
Norfund’s investment will be part of the fund’s first close, alongside commitments from other European development finance institutions including IFC and EBRD. Together, these contributions will help mobilize additional international capital and strengthen Ukraine’s private sector.
“By providing growth capital to these businesses, we are supporting job creation, innovation, and the rebuilding of critical supply chains. With a dedicated team on the ground and a strategy built for wartime conditions, REBUF will support companies with strong local roots and growth potential,” says Tellef Thorleifsson, CEO of Norfund.
Dragon Capital’s track record and deep local presence make it a great choice for a trusted partner for Norfund in Ukraine.
“The reconstruction of Ukraine depends on companies that continue to operate and invest despite the war. Partnership with Norfund allows Dragon Capital to direct more capital to businesses that are developing new products, expanding capacity, and strengthening local industries. We appreciate the trust of international partners and remain focused on turning it into long-term, practical results for the Ukrainian economy”, says Tomáš Fiala, Founder of Dragon Capital.
This is the second investment made under Norfund’s Ukraine Investment Mandate, which aims to support high-risk, high-impact investments that contribute to the country’s resilience, reconstruction, and long-term integration with European markets.
“Norway’s support for Ukrainian businesses is also an investment in freedom, democracy and economic resilience. By helping sustain economic activity, we strengthen Ukraine’s ability to withstand the aggression and to shape its own future,” says Minister Aukrust.
Norfund is the Norwegian Investment Fund for developing countries with a mission to create jobs and improve lives by investing in businesses that drive sustainable development. Owned and funded by the Norwegian Government, Norfund is the Government’s most important tool for strengthening the private sector in developing countries and reducing poverty. Norfund’s committed portfolio amounts to USD 3.8 billion Since December 2024, Norfund has also managed a separate Norwegian Ukraine Investment Fund. For more details, please visit: www.norfund.no
During 2025, Ukrainian defense tech startups managed to attract more than $105 million from investors.
This was reported on Telegram by First Deputy Prime Minister – Minister of Digital Transformation Mykhailo Fedorov.
According to Fedorov,
“Today the Brave1 defense cluster is the largest angel investor in Ukraine. Thanks to cooperation with it, more than 50 Ukrainian defense tech companies during the current year managed to raise over $105 million from foreign funds, which accounts for a third of all early-stage investments in Europe in the field of defense technologies”
Currently, domestic companies manage to close rounds of $2.5–5 million.
