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.
The plan to restore the Ukrainian maritime industry includes a 600 million EUR package and assistance for Grain from Ukraine, as reported by Vladimir Svet, the Minister of Infrastructure of Estonia, in an interview with Ukrinform.
He noted the plan for the restoration of the maritime industry provided for the Ukrainian infrastructure protection during the war. It also includes a package amounting to ca. 600 million EUR.
Mr. Svet noted also that infrastructure will be required when Ukraine wins and begins a large-scale recovery process, while the companies worldwide start using such infrastructure.
The first part of the plan addresses the biggest needs of the Ukrainian fleet and maritime industry. Such assistance includes a package amounting to ca. 600 million EUR, divided between what the Navy needs and dual-use needs. A share for the Navy makes up nearly 25%, as these are the most urgent requests for operations at sea.
From the civil aspect, the plan focuses on Ukrainian trade support, first of all, concerning the initiative Grain from Ukraine.
Mr. Svet added, “We also want to help increase the potential of your ports, as you receive large volumes of goods, cargo, and energy”.
Previously, USM reported that Ukraine and Estonia discussed a plan to restore port infrastructure.
International finance package of €157 million for private wind project to boost Ukraine’s energy security
Project is co-financed by European Bank for Reconstruction and Development, International Finance Corporation, and Black Sea Trade and Development Bank
The European Union (EU), the United Kingdom, and CIF’s Clean Technology Fund (CTF) supported the mobilization of the finance package
Deal marks a pivotal step in advancing Ukraine’s shift towards renewable energy
An international finance package will bring €157 million of project finance debt to a private wind power project that aims to boost Ukraine’s energy security. The deal, announced today in Kyiv, is co-financed by the European Bank for Reconstruction and Development (EBRD), International Finance Corporation (IFC) and Black Sea Trade and Development Bank (BSTDB) and supported by the European Union (EU), the United Kingdom, and CIF’s Clean Technology Fund (CTF).
One of the first greenfield private projects in Ukraine’s power sector since the beginning of Russia’s invasion of Ukraine in 2022, this project forms part of efforts to advance Ukraine’s shift towards renewable energy generation as well as bolster its energy security following attacks from Russia on the country’s energy generation infrastructure.
The EBRD and IFC will each lend €60 million and BSTDB €37 million. The total cost of the project is estimated at €225 million (excluding VAT), with the rest to be met by equity from the project sponsor, GNG Group or Galnaftogaz, widely known in Ukraine as OKKO Group. The loans are to Wind Power GSI Volyn LLC and Wind Power GSI Volyn 3 LLC, special purpose vehicles incorporated in Ukraine.
The loans will support OKKO to construct and operate wind power plants in Ukraine with a combined capacity of 147 MW. The plants are expected to generate at least 380 GWh of renewable zero carbon electricity annually, resulting in carbon dioxide emission savings of approximately 245,000 tons per year.
The EBRD’s funding will be backed by financial guarantees from the European Union provided under its Ukraine facility, the Ukraine Investment Framework. This comes from the Ukraine Investment Framework Hi-Bar guarantee programme, which supports both new and existing climate mitigation technologies, in particular in the energy sector, in line with the EU’s detailed Ukraine Plan.
IFC and BSTDB’s loans are backed by guarantees from the European Union under the Ukraine Investment Framework as part of IFC’s Better Futures Program: RE-Ukraine. The United Kingdom’s Foreign, Commonwealth & Development Office (FCDO) provided grant funding as a first loss guarantee to enable the mobilization of IFC and BSTDB’s loans. IFC’s funding package also includes €10 million in debt financing from CTF and was enabled by pre-investment work through which IFC helped optimize the project structure in a highly volatile market environment. This was possible thanks to support from Austria’s Federal Ministry of Finance and the Swiss State Secretariat for Economic Affairs SECO.
“We are grateful to our partners for their long-term, sustainable cooperation, which is especially valuable during wartime — for both business and the country as a whole. This project addresses several key challenges at once. Firstly, it strengthens the country’s energy security and independence. Secondly, it advances the transition to zero-emission electricity production,” said OKKO Chief Executive Officer Vasyl Danyliak.
“With significant power generation capacity in Ukraine destroyed as a result of the war, this investment is crucial to address the severe current energy shortfall, support Ukraine’s decarbonisation goals and boost the private sector’s role in further development of the renewable energy sector in the country,” said Matteo Patrone, the EBRD’s Vice President, Banking.
Ines Rocha, IFC’s Regional Director for Europe, said: “This project will ensure that people can keep the lights on, stay warm and connected – therefore marking a significant milestone in Ukraine’s recovery. While paving the way for a more resilient Ukraine, this transaction also sends a clear signal about the country’s readiness for private investment and ability to meet the challenges of tomorrow.”
“Ukraine’s energy sector has faced unprecedented challenges due to the ongoing crisis, making the diversification and resilience of its power infrastructure more critical than ever. Supporting projects that strengthen the country’s energy independence and accelerate its transition to renewable energy is a priority for BSTDB. This wind power project is a tangible step toward building a sustainable energy future for Ukraine. We are proud to stand alongside our development partners in mobilizing essential resources, enabling investments that will help restore and stabilize Ukraine’s energy supply while fostering long-term economic recovery and environmental sustainability,” said Dr Serhat Köksal, BSTDB President.
“This is a smart investment at a critical time. It boosts Ukraine’s energy security and supports its shift to renewables. The EU is glad to help make it happen,” said Stefan Schleuning, Head of Cooperation at the EU Delegation to Ukraine.
Martin Harris, British Ambassador to Ukraine, said: “I’m delighted that £3.8 million in UK grant funding has helped unlock this wind farm project, which has the capacity to power the equivalent of up to 80,000 homes. The UK stands firmly behind Ukraine’s green recovery. These sustainable energy solutions not only help Ukraine withstand Russia’s attacks on the energy grid but also build a more sustainable future economy. It’s encouraging to see Ukrainian businesses diversifying their energy sources with cleaner, modern technologies. This strengthens Ukraine’s entire energy sector – a key priority behind the 100-Year Partnership Agreement that Prime Minister Keir Starmer and President Volodymyr Zelenskyy signed earlier this year.”
The EBRD and IFC have been supporting OKKO Group, their client since 2005, to move forward with the decarbonization strategy it is pursuing against the backdrop of Russia’s war on Ukraine, as it prepares for Ukraine’s integration into the European Union and a future net-zero economy.
Energy is a priority for the World Bank Group in Ukraine. The World Bank, IFC, and MIGA have been working closely on complementary public and private sector interventions to meet both the country’s short-term imperatives, including restoring essential infrastructure and procuring equipment, and longer-term needs.
Since February 2022, IFC has delivered $2.2 billion to support Ukraine’s private sector, including $760 million in mobilization, through its Economic Resilience Action (ERA) Program for Ukraine. The support is part of the World Bank Group’s response package, which has assisted more than 15 million Ukrainians by helping businesses stay afloat and enabling the government to provide essential services, pay wages, keep schools and hospitals open, and make critical repairs.
Last year citizens of 78 countries launched business in Ukraine. Most often, companies were registered by citizens of the following countries:
– Turkey – 201 business entities
– Poland – 90 business entities
– the United States – 89 business entities
Almost half of new foreign companies (542) are located in Kyiv. Other popular regions are Lviv Region (137 companies) and Odesa Region (122 companies).
In addition, the registered companies include those having ties to well-known Ukrainian financial & industrial groups, such as Ombry Electrical Energy Co. Limited – a company owned by a citizen of Greece but being the Liovochkin family group member. Also, AP Bioenergy Complex is owned by citizens of the US and Austria but is related to AVEC concern (Feldman’s group).
First and foremost, project financing or syndicated loans, where several banks work together, will be in demand.
Dmytro Tsapenko, Deputy Chairman of the Board, Head of Ukrsibbank Corporate Business Department, expressed such an opinion in an interview for the annual rating of 25 Leading Banks of Ukraine.
The top manager explained, “Reconstruction will require for involvement of companies from various sectors: construction, building material production, metalworking, etc. These companies use a standard set of loan products: working capital financing, trade, medium-term financing, etc.”.
However, in the future large projects will require long-term financing, such as project financing or syndicated loans, where several banks will cooperate.
Mr. Tsapenko adds, “Now we already have requests for projects being on the verge of project financing and regular financing for large corporate clients. The Ukrainian banking sector has excess liquidity both in UAH and in foreign currency. Therefore, the problem lies in the willingness of banks to take risks”.
To mitigate such risks, banks use distribution programs from international financial organizations, primarily the EBRD. The banker explained, “This allows us to grant loans in favor of clients and projects for which we would not be ready to take risks on our own”.
The call for project proposals for the third stage of Ukraine Recovery Program finished: communities filed 543 applications, as reported by the Ministry of Community and Territorial Development (source: Ukrinform).
It notes, “235 communities have applied for the program with the support of the European Investment Bank, while the aggregate amount of projects made up 19.27 billion UAH”.
However, over 50% of submitted applications deal with the replacement of communal networks in communities. Another third are healthcare projects. There were also 20 proposals for housing projects for internally displaced Ukrainians.
Most of the project proposals were received from Lviv, Odesa, Kyiv, Cherkasy, Poltava, and Dnipro regions.
As reported, after the deadline the applications will be assessed by regional military administrations and a rating list will be compiled.
The projects will be implemented via the DREAM reconstruction management ecosystem which automates project selection and monitoring.
As reported, the call for applications for the third stage of the Ukraine Recovery Program started in early January. The program budget makes up 100 million EUR.
The €200 million Emergency Credit Facility for Recovery of Ukraine and The €340 million Recovery Program are two framework loan agreements between the EIB and Ukraine signed in 2014 and 2020 respectively. Both agreements are aimed to enable local governments to rebuild social infrastructure and to improve the living conditions of internally displaced persons (IDPs) and their host communities. Reconstruction projects are fully managed by local governments.
The post-war recovery of Ukraine is a huge challenge. Still, it also opens up new opportunities for European companies and investors and can become a trigger for the growth of the entire European economy.
Andriy Sybiga, the Minister of Foreign Affairs of Ukraine, expressed such an opinion at the panel discussion on EU enlargement at the World Economic Forum in Davos, as reported by Ukrinform correspondent.
The Ukrainian official said, “Another aspect I would like to raise is the restoration of Ukraine. This is likely to be the project of the century. I think it will also be a trigger for the European economy. It will open up new opportunities for the European economy and European companies. Now we are talking about incurred losses amounting to ca. 600 billion (USD – ed.), just at this stage. We face huge challenges, but we have also huge opportunities. If we combine our efforts, we will make this part of the world much safer”.
Martha Kos, the European Commissioner for Enlargement, who also took part in the panel discussion, emphasized the importance of strengthening democracy and the rule of law in order to attract investors to invest both in the recovery of Ukraine and the economic development of the whole of Europe.
She noted, “Solidarity and the rule of law are very crucial in this geopolitical situation. We always start conversations with the rule of law. Its observance will attract investors and will mean that they will not go all over the world, which also carries certain risks today, but will be closer to Europe. Therefore, development of the rule of law will also be important for the economies of our countries”.
As reported, the World Economic Forum is taking place in Davos with the leading world politicians and representatives of the business community involved. The delegates are discussing the most vital issues of global development and ways to solve them.
In a recent statement, former U.S. President Donald Trump identified Ukraine—specifically Odessa—as a prime location for real estate development
From hotel ventures to large-scale construction, Trump believes that Ukraine presents lucrative opportunities for investors looking to expand their portfolios in emerging markets.
Odessa in the Spotlight
During an autumn conversation with Ukrainian President Volodymyr Zelensky, Trump mentioned Odessa as a standout city for hotel investments, according to a report by the Wall Street Journal. Trump’s endorsement underscores the city’s strategic position as a port hub on the Black Sea, which could attract growing numbers of tourists and business travelers in the coming years.
Gaza Strip: A Potential “Middle Eastern Riviera”?
Interestingly, Trump also suggested a real estate development idea to Israeli Prime Minister Benjamin Netanyahu: building hotels in the Gaza Strip. According to members of Trump’s team, the vision includes transforming Gaza into a “Middle Eastern Riviera,” offering enhanced opportunities and financial prospects for local Palestinians.
US Envoy Steve Witkoff stated that Trump aims for transparency with the Palestinians, highlighting that improving living conditions and economic prospects in the region aligns with broader peace efforts. Witkoff noted that Gaza could become uninhabitable in the next 10–15 years without significant investment and infrastructure improvements.
What This Means for Investors
Emerging Markets: Both Odessa and the Gaza Strip represent frontiers for hospitality and real estate development. Despite political complexities, early involvement may yield high returns.
Strategic Port Locations: Odessa’s status as a key Black Sea port could drive tourism and commerce, making it a magnet for international investors.
Political Will and Support: Trump’s vocal support, as well as backing from political leaders in the region, signals potential momentum for infrastructure upgrades and policy incentives.
Key Takeaways
Odessa: Trump highlights it as a prime opportunity for hotel investments in Ukraine.
Gaza Strip: Long-term vision to develop hotels, turning it into a “Middle Eastern Riviera” for improved economic growth and living standards.
Investor Outlook: While political and security factors remain crucial to consider, these regions may offer significant long-term potential for the real estate sector.
For those looking to diversify their portfolio and venture into new real estate markets, both Odessa and the Gaza Strip could become high-reward investments—if approached with careful due diligence and an eye on geopolitical developments.
Important notification: Considering the high level of interest and the needs in Ukraine, SECO has decided to increase the total contribution of this call for proposals to up to CHF 100 million (from CHF 50 million).
In June, 2024, the Federal Council decided to better involve the Swiss private sector in Ukraine’s recovery and reconstruction. Based on their expertise, Swiss companies can make an important contribution to Ukraine’s reconstruction process. Within the framework of the Call for Proposals, Switzerland supports projects from Swiss companies with a legal entity in Ukraine, aligned with the needs of Ukraine linked to recovery and reconstruction.
The new total contribution for this call is up to CHF 100 million. Individual financial contributions for selected projects still range from CHF 1 million to CHF 15 million. All the detailed information on the process, timelines, selection criteria, etc. can be found in the «Documents» below.
The «Main Document Call for Proposal Ukraine – Version 2» has been uploaded under the «Documents» section on 17.03.2025, replacing the original version published on 30.01.2025. The changes in this Version 2 exclusively relate to the increase in the budget and its implications, particularly the adaptation of deadlines and dates.
All changes made within this «Main Document Call for Proposal Ukraine – Version 2» compared to the «Main Document Call for Proposal Ukraine» uploaded on 30.01.2025 are marked in red color. All eligibility and award criteria (Annex 1) and other Annexes listed on the website under the section «Documents» remain unchanged during the re-submission period.
As the deadline for submitting applications under the Call for Proposals has been re-opened from 17.03.2025 to 31.03.2025 (23:59 CET), Eligible companies that have not participated during the first submission period can submit their project proposals.
Resubmissionis not required: The already submitted proposal will remain valid and will be evaluated based on the original version if no updated submission is made before the new deadline.
Please note: Applicants who have already submitted an application have the possibility to make modifications and/or additions. In this case, the changed and/or new passages shall be marked in yellow within the document, and newly uploaded documents within already submitted applications shall have a filename starting with «NEW».
Only new/modified documents need to be re-uploaded. The original documents that were replaced by the new documents are thus no longer considered in the evaluation. It is the full responsibility of the applicant that the modifications are clearly recognizable in yellow. If this is not the case, the original version uploaded between 30.01.2025 – 28.02.2025 will be taken into consideration for evaluation.
To submit new/modified documents, you have to create a new account within the profile environment on the website.
If you wish to withdraw an application, please do so in writing a letter and uploading it within the profile environment.
The Call for Proposals is re-opened from 17 of March until 31 of March (23:59 CET) to submit projects. Submissions received after the deadline will not be considered.
Please note: SECO will not answer questions individually during the application process. Questions and answers to the Call for Proposals were published anonymously and publicly on this Webpage under the section «Documents» on 14 of February 2025.
During the re-submission period, questions can be formulated through the contact form from 17.03.2025 – 20.03.2025 (23:59 CET). Answers will be published by 25.03.2025 under the section «Documents» on the website. Questions which have been answered during the first Q&A-session will not be answered again (see document “Q&A Call for Proposals SECO 14.02.2025”). Questions not submitted through the contact form will not be answered.
