These funds will be directed to key sectors of the economy where Swiss businesses are active.
Ukraine and Switzerland have signed a Memorandum of Understanding, under which the Swiss government will allocate 55 million USD to finance recovery projects via local companies. These funds will be directed to key sectors of the economy where Swiss businesses are active, as reported by the press service of the Ministry of Economy on January 23.
Details:
The Swiss State Secretariat for Economic Affairs (SECO) will provide funding. Project selection will start in late January 2025, and implementation of the first initiatives will begin in July 2025. The Government of Ukraine, SECO, and the Embassy of Switzerland will participate in the selection process.
The memorandum creates the basis for further signing an intergovernmental agreement on technical and financial cooperation, as reported by the Ministry of Economy. The agreement will cover launching public projects from the Unified Public Investment Portfolio approved by the Strategic Investment Council.
Context:
Switzerland is launching programs to support Ukraine in decentralization, recovery, joint projects with Ukrzaliznytsia, and preparation for the heating season.
In April, the Swiss Federal Council decided to allocate 5 billion CHF (equal to 5.5 billion USD) for humanitarian aid, economic development, and long-term recovery of Ukraine until 2036.
Assistance will be implemented step by step: 1.5 billion CHF will be allocated for international cooperation till 2028, while in 2029-2036 the government will explore other sources of funding to allocate the remaining 3.5 billion CHF.
On 12 February in Bern, the Swiss Federal Council adopted the Cooperation Programme with Ukraine for 2025-2028. It will be the first stage of a long-term 12-year support programme for Ukraine’s recovery, reforms and sustainable development. Under this programme, CHF 1.5 billion will be allocated for economic recovery, protection of civilians and strengthening of institutions.
“The Swiss Government declared its readiness to provide long-term support to Ukraine back in April 2024, announcing the allocation of CHF 5 billion over the next 12 years. The approved Support Programme for 2025-2028 is only the first stage of implementation of the intergovernmental agreements. In 2029-2036, the Swiss side will provide another CHF 3.5 billion for Ukraine,” said Yuliia Svyrydenko, First Deputy Prime Minister of Ukraine and Minister of Economy of Ukraine.
The cooperation programme between Switzerland and Ukraine for 2025-2028 focuses on three main areas:
Economic recovery, including support for small and medium-sized enterprises (SMEs), agricultural development and infrastructure reconstruction, including in regions affected by the hostilities.
Modernisation of public services, including healthcare and education, public transport, energy and water supply.
Protection of civilians, including humanitarian demining, documentation of war crimes, assistance in the search for missing persons and strengthening of human rights mechanisms.
To ensure the successful implementation of the Programme, Switzerland will cooperate with Ukrainian government agencies, the private sector, academic institutions and NGOs. It is planned that one third of the Programme’s budget – about CHF 500 million – will be spent on rebuilding Ukraine in cooperation with Swiss companies. During the World Economic Forum in Davos, Ukraine and Switzerland signed a memorandum on the first CHF 50 million that Switzerland intends to allocate for its companies to support projects in Ukraine. Applications from businesses are now being accepted. Implementation of the selected projects is scheduled for July 2025.
Join EY Law Denmark and EY Law Ukraine on February 25, 2025 for an insightful online webinar on the opportunities and challenges of doing business in Ukraine.
This webinar will be particularly engaging for Danish businesses looking to enter the Ukrainian market or expand their existing operations, and Danish investment bankers seeking insights into investment opportunities and trends in Ukraine.
Webinar topics and speakers include:
Peder A. Larsen, Associated Director, The Export and Investment Fund of Denmark (EIFO): “Overview of the Danish governmental program supporting investments in Ukraine” moderated by Susanne Scott Levinsen, Partner, Country and Transaction Law Leader, EY Law Denmark;
Troels Libak Stollberg, Vice President and Head of Legal & Compliance for Carlsberg’s CEE and India Region, Carlsberg Group : “Insights from Danish businesses with firsthand experience in the Ukrainian market” moderated by Bogdan Malniev, Partner, Tax&Law practice, EY Law Ukraine;
Bogdan Malniev, Partner, and Olena Dreval, Director, Tax&Law practice, EY Law Ukraine: “Understanding the Ukrainian legal framework and strategies for market entry during wartime”;
Borys Lobovyk, Partner, Law Leader, and Olena Dreval, Director, Tax&Law practice, EY Law Ukraine, Ninel Lugivska, General Manager, 3Shape Ukraine: “Key sectors of interest for investors: IT and energy”;
An interactive Q&A session to address your queries.
Date and time: February 25, 2025, from 10:00 to 11:30 (Kyiv time) / 9:00 to 10:30 (Copenhagen time).
Format: online.
Duration: 1.5 hours.
This webcast is free of charge but requires prior registration.
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.
Nearly two hectares of land near Odesa Commercial Sea Port have been allocated for an industrial park.
Ukrinform reports it has been disclosed during the Odesa Economic Revival Forum.
Odessa Mayor Gennady Trukhanov noted that now it is important to attract investments in the development of the city’s economic potential.
First of all, it concerns port infrastructure, since Odesa is of strategic importance for global food security.
The city authorities have already identified territories for the development of industrial parks. One of them is located next to the port and is its only development territory: it only needs to bring up the infrastructure.
The mayor noted, “This is an industrial park and a priority development zone. We studied the experience of our European partners, looked at it, and made such a model for our region. We are allocating nearly 2 hectares of land so that business entities may see what can be built here. Near the port, there are all the conditions for business development”. Hereby we remind that an industrial park will be built based on the UDSC Ship Repair Yard. The project upon the creation of a modern industrial park in Kiliya was presented at the Ukraine Recovery Conference (URC2024) in Berlin.
The Ministry of Economy of Ukraine spoke about key work trends and ways to overcome challenges caused by the full-scale invasion of the Russian Federation, at the forum “Economic Policy of Ukraine: Recovery in the Wartime” held on September 16, 2024.
Yulia Svyrydenko, First Deputy Prime Minister – Minister of Economy of Ukraine, noted at the presentation, “One of the key tasks of the Government is to maintain the GDP growth rate and to achieve economic self-sufficiency. Therefore, we are moving towards our strategic goals: attracting investment in the real sector, increasing non-raw material exports, changing the complexity of the economy by increasing the share of processing in GDP, and improving the situation in the labor market. For each of these priorities, we have a very clear set of tools that work to achieve these goals”.
She noted, that today, the priorities of the Ministry of Economy include the digitalization of state services in order to facilitate business work.
Yulia Svyrydenko says, “This week, we are starting work on digitizing state services via eDozvil service. Since September 18, the first digital service in this framework has been available for entrepreneurs, and their number will only grow in the future. In particular, since October, it will be possible via eDozvil to obtain a conclusion that gives the right to extend the deadline for settlements for export and import transactions. This is what business has long been waiting for and asking for”.Oleksiy Sobolev, First Deputy Minister of Economy, presented at the forum the Strategy for Restoration of Small and Medium-Sized Enterprises (SMEs) by 2027. The document approved by the Government defines key directions of state policy in SMEs, including restoration of destroyed enterprises based on the build-back better principle. Special attention has been drawn to green transition, digital transformation, innovative development, and business inclusiveness, namely: engagement of women, people with disabilities, internally displaced persons (IDPs), and veterans. The document complies with the OECD recommendations, complies with the content of the Association Agreement between Ukraine and the EU, as well as complies with the Plan for the Ukraine Facility.
Oleksiy Sobolev noted, “Support for SMEs is one of the key priorities of the Ministry of Economy and the state as a whole. The principal task of the Strategy is to facilitate conditions for the development of SMEs and to give partners an understanding of where to invest now and after the end of the war. The new strategy is inclusive and will promote the business activity of women, people with disabilities, and veterans. It is coordinated with businesses, the public sector, and experts. It has already been supported by our international partners. Now we have the result: we launched the SME Resilience Alliance in cooperation with Germany”.
Stefan Kossoff, Director of Development Programs at the British Embassy in Ukraine, highlighted, “Small and medium-sized businesses have shown extraordinary resilience in difficult times. Ukrainian businesses are still operating, entering new markets, and seeking investment opportunities. We are glad to be involved in creating the Strategy since it is a holistic and practical approach to business recovery. The UK remains committed to supporting the Government of Ukraine in reforming SME policy to better meet the needs of businesses and promote inclusivity and innovation. Practical support for inclusive policies is also important, therefore, we have launched in the framework of the Good Governance Fund project Zrostai 2.0 educational program for women looking to start or scale their business or to learn a new profession”.
Teodora Dell, Deputy Director of the USAID Mission in Ukraine, mentioned, “USAID has a long history of supporting small and medium-sized enterprises in Ukraine. We do this by helping the Government of Ukraine to improve the business environment by expanding access to finance, attracting joint investments to increase efficiency, and organizing trade missions to find new markets. Overall, USAID has supported over 28,000 small and medium-sized enterprises in key sectors across Ukraine. Jointly with our partners at UKAid, we are proud to have supported the launch of digital platforms, such as the Pulse and eDozvil, which will help make business registration and feedback from government services simpler and more transparent, making it easier for thousands of SMEs to do business every year”.
Oleksandr Tsybort, Deputy Minister of Economy for Digital Development, Transformations, and Digitalization presented the work of digital platforms for business.
He said, “Our task is to minimize the human factor wherever possible by digitizing bureaucratic processes and automating tasks, in particular, by integrating artificial intelligence into government services. We believe that everything that can be done online should be digitized. This will help us to mitigate corruption risks and to increase the efficiency of government services. Meantime, it is important to support the institutional capacity of state authorities by providing thereto convenient tools for big data analysis and decision-making”.
Oleksandr Tsybort noted also, “The Ministry of Economy is not just a regulatory ministry, we provide services for business. Over one-half of the Ministry’s officers are involved in processing applications. The center of any service should be the client, in our case, the entrepreneur, around whom the service is formed. Our goal is to facilitate a convenient and open process for business: a few clicks – and the service is provided. Both the Pulse and eDozvil projects are steps towards a digital state with transparent communications between business and government”.
He noted that the Pulse platform has been created in order to strengthen interaction between the state and business. Any entrepreneur can use it for feedback on the work of state authorities: vote for problems that need to be solved by state authorities in the first place, evaluate their work, or ask for help in solving problems if any arise. The platform should broadcast the voice of business and become an applied tool that will allow entrepreneurs to actively influence decision-making by state authorities.
For reference: The Pulse platform was developed through the Supporting Digital Transformation project with support by USAID and UK Dev. The project partner is the Office of Effective Regulation (BRDO). The creation and support of this platform for its further development have become possible due to the generous support of the American people through the United States Agency for International Development (USAID). Its content is the sole responsibility of the Ministry of Economy of Ukraine and does not always reflect the views of USAID or the US Government. This platform was created with financial support from the International Development Assistance Program of the UK Government. However, the expressed views do not always reflect the UK official policy.
eDozvil project is being implemented by the Ministry of Economy of Ukraine in partnership with the Ministry of Digital Transformation of Ukraine, funded by the EU in the framework of the EU4DigitalUA project implemented by FIIAPP. Advisory support for the development of regulatory acts for the system has been provided by EU4Business: SME Policies and Institutions Support (SMEPIS) project implemented by Ecorys in a consortium with GIZ, BRDO, and Civitta with financial support from the European Union. Technical requirements for the second stage were developed with the support of the EBRD. The project Support to Digital Transformation, funded by USAID and UK Dev, provides the full cycle of launching eDozvil. Partner upon implementation is the Office of Effective Regulation of BRDO. The principal beneficiary of the eDozvil system from the government is the Ministry of Economy of Ukraine. eDozvil system has been created, inter Elia, in accordance with the Action Plan for Implementation of the State Anti-Corruption Program for 2023-2025 and is a Component I of the Plan for the Ukraine Facility. SME Recovery Strategy till 2027 has been developed with expert support engaged in the framework of the Good Governance Fund Project Business Revitalization for Sustainable Growth funded by the UK International Development from the UK Government. The project has been implemented by Abt Global and the Kyiv School of Economics.
From Reni, downstream the Danube We know that a river port in Reni covers an area of nearly 95 hectares, and its berthing line is ca. four kilometers long. Despite such a powerful state-owned enterprise, after the outbreak of the large-scale war, a series of cargo owners arrived on the Danube, intending to build handling complexes.
Just in spring 2023, the company “Development Reni Terminal”, a member of the large Ukrainian group of companies “Kernel”, leased 11 hectares of land from Reni River Port downstream the Danube for 49 years. The investor announced its intention to build two berths and a complex for grain receiving, storage, and shipment next to the port. The estimated capacity will make up 60 thousand tons per month.
Further downstream, a handling complex of the company “Potoki” has already been built and is operating, followed by opening “Pivdenna” branch in the region. The estimated capacity of the terminal allows it to handle nearly two thousand tons of oil per day.
Even further downstream, one can see that the once-abandoned pier near the Viketu Strait has been reanimated, and cargo traffic also flows through such a complex. Of course, it is worth mentioning that a river port has appeared near the Orlivka-Isaccea ferry line. In total, to the left of Reni River Port, there are four more transshipment complexes.
From Reni, upstream the Danube.
Upstream, “Agro-Reni” is planning to build a universal handling complex. This enterprise has been operating on the territory of the port for over ten years. Its founder is the largest company in Moldova, SRL Rusagro-Prim, engaged in grain production and export. Moldovan grain through Reni River Port goes to Turkey, Italy, Greece, Egypt, and other countries. Before the outbreak of the Great War, Agro-Reni built additional warehouses for grain storage on the port territory. Now the investor has decided to build a new multifunctional handling complex outside the port in order to work not only with grain but also with general cargo.
Recently, three more enterprises, previously mentioned at the beginning of this publication, have leased land in the same area. If all the plans become a reality, four more handling complexes will appear to the right of Reni. Although investors are already using more up-to-date high-tech equipment, someone aptly called such a phenomenon as reed ports.
A state-owned enterprise is not flexible.
The company “SK Acord” has been cooperating with Reni River Port for many years. Why did the company decide to invest considerable funds in the construction of its transshipment complex – “from scratch” and outside the port?
Oleksandr Stroya, CEO of “SK Acord”, notes, “Unfortunately, logistics are such that most often handling through Reni River Port is expensive, especially considering the cost of the port infrastructure. The state is not flexible in this regard. We have repeatedly said that tariffs need to be reviewed and reduced so that clients cannot leave. But it takes half a year to resolve such issues. Therefore, we have to develop in parallel our own terminal designated for dry cargo handling, both bulk and packaged, tared. We want to be more flexible in pricing, in order to offer the client acceptable conditions. Although we are still working in Reni River Port, the existing conditions do not suit us”.
“We are just killing the state-owned port”
Valentina Yepitrop, a member of Reni City Council, believes that reed ports are treated as an additional environmental burden on the river, which is not clean anyway, while private complexes are a direct threat to the state-owned port.
She says, “We all talk about the need to help Reni River Port as a city-forming enterprise, but we ourselves, by allocating land, contribute to reducing cargo traffic. We are just killing the state-owned port. I myself have worked in the port all my life, recently in a freight forwarding company, and we give an opportunity for the port to gain income. We are thinking about ways to earn salary and bonus by the dockers. Companies working in the port and wishing to leave it say that the services of the state enterprise are expensive. But there is a Port Council, which could, in my opinion, send a joint letter of port operators to the Ministry of Infrastructure with a proposal to reduce tariffs so that Reni River Port could become competitive with other Ukrainian ports.
The Italian company Fincantieri is leading the way with a plan to develop the Odesa Sea Port, while Wall Street giants such as Blackstone, Carlyle and KKR are trying to grab a piece of the Ukrainian market, as reported by the Asia Times.
Fincantieri, the largest European shipbuilder based in Trieste, Italy, has been quietly working to transform Ukraine’s defunct state-owned shipyards in the Odesa Sea Port into a state-of-the-art production center that will build some of the most advanced commercial vessels worldwide.
Expansion to Odesa seems to be a logical next step for the Italian company after its success in building new generation commercial vessels for its Norwegian subsidiary VARD in Tulcea, Romania. Fincantieri employs nearly 4,500 people in Tulcea and Braila, near the Moldovan border.
Once a sleepy tourist town in the Danube Delta, Tulcea has become a center of geopolitical interest, becoming a major transportation hub for Ukrainian agricultural exports after russia seized the Sea of Azov.
Tulcea was also mentioned in the news as russia continues to send combat drones there in order to interfere with shipping. The enemy’s drones have crossed the border and landed on Romanian territory – that was a serious military and diplomatic escalation given that Romania is a member of NATO and the European Union.
However, the russian drones failed to weaken Fincantieri’s commitment to northeastern Romania and its plans for Odesa. If it goes ahead with its plan to build a new generation shipyard in Odesa, it could well become the largest foreign investor in the history of Ukraine.
The IFC and the World Bank’s MIGA Insurance Group have already informed Fincantieri on their readiness to provide project financing and political risk insurance, while the US International Development Finance Corporation (US DFC) is ready to provide military risk insurance.
As emerging market experts like to point out, no one guards an empty bank; security resources are deployed to protect valuable assets, not the other way around. While Fincantieri is best known for building giant cruise ships like Carnival, it is also a major contractor in the naval defense industry.
Apart from building frigates for the U.S. Navy, Fincantieri recently acquired Whitehead Alenia Sistemi Subacquei S.p.A. from the Italian defense company Leonardo, which is reportedly capable to protect the Odesa Sea Port from russian submarines, maritime drones and torpedoes.
Fincantieri’s plans are certainly music to the ears of Sergii Marchenko, the Minister of Finance of Ukraine, who is promoting an aggressive program aimed at privatization of the Ukrainian state assets to liberalize the Ukrainian economy and to reduce its external debt obligations, especially those of state-owned enterprises.
Fincantieri, along with foreign investments into Odesa by Cargill and Dubai DP Port, offers hope for an economic renaissance for Odesa that has not been seen since the Porto Franco era in 1819-1859.
Today the remote wealthy merchants are Stephen Schwarzman, co-chairman and co-founder of the American private equity giant Blackstone Inc, and David Rubenstein, co-founder and co-chairman of the Carlyle Group. Both were among the foreign business leaders who met Volodymyr Zelenskyy, the President of Ukraine, in Davos last January.
Mr. Schwarzman could be appointed the US Secretary of Commerce during Trump’s second term, while Mr. Rubenstein could be appointed the US Treasury Secretary or Secretary of State if Kamala Harris wins the election.
Mr. Schwarzman has already instructed his staff to target investments in the Ukrainian private sector companies, such as cloud video game giant Boosteroid. Mr. Rubenstein, meanwhile, has used his considerable political and economic influence to garner support for Ukraine among both the American and world leaders.
While Ukraine has effectively driven the russian navy out of the Black Sea, new foreign investment from companies such as Fincantieri, Blackstone, Carlyle and KKR could help transform the war-torn country into a new European powerhouse in the coming decades.
The Cabinet of Ministers has registered the new Muzhay Industrial Park in Zakarpattia region. The Government made the decision at a meeting on 5 December.
“The creation of more than 400 jobs in various manufacturing industries, as well as in the field of science and technology, will be a significant stimulus for the region’s economic growth. The park will help attract investment and develop the industry of Zakarpattia within the framework of the Made in Ukraine policy, which allows supporting Ukrainian business even in difficult conditions,” said Vitaliy Kindrativ, Deputy Minister of Economy of Ukraine.
Muzhay Industrial Park is located on the territory of the Berehove Territorial Community of Berehove District, Zakarpattia Region. The park covers an area of 30.5955 hectares and will create up to 427 new jobs.
The park’s main activities include the processing industry, in particular:
food production;
woodworking and manufacture of wood and cork products, except furniture;
manufacture of paper and paper products;
manufacture of other non-metallic mineral products;
manufacture of fabricated metal products, except for machinery and equipment;
manufacture of motor vehicles, trailers and semi-trailers;
manufacture of other vehicles.
It also provides for scientific and technical activities and other areas compatible with the park’s concept.
The initiating company plans to build a modern infrastructure to support the park’s residents. It is expected that residents will attract significant investments to build facilities in the park, which will be an additional incentive for the development of the local economy.
The Register of Industrial Parks already includes 98 industrial parks, and Muzhay will become an important component in building Ukraine’s industrial potential.
Participants in registered industrial parks receive a number of tax and customs incentives, such as exemption from import VAT and customs duties on equipment (provided that there are no analogues produced in Ukraine, the equipment is used exclusively on the territory of the industrial park and cannot be leased), exemption from income tax for 10 years (provided that the funds released are used for the development of the enterprise), and the right of local authorities to grant local tax concessions.
The development of industrial parks is part of the Made in Ukraine economic policy. The state expects that the conditions created for manufacturers in the parks will help to accelerate production development. In 2025, the Government will continue to support industrial parks, which helps to attract investment and develop regions. It is planned to allocate UAH 1 billion for the construction and modernisation of industrial infrastructure in industrial parks. Experience shows that local authorities are keen on creating parks, as these parks generate jobs and significantly boost local budgets by operating within the community.
Foreign and local companies in Ukraine have adjusted to the new realities and continued to work and try to expand their operations during the war. Moreover, many companies are considering entering the market early so as not to miss out on Ukraine’s reconstruction, but are prevented by internal policies that do not allow them to enter the market without proper insurance coverage.
In response to market needs, Willis Towers Watson (WTW) developed Personal Accident and Emergency Medical Assistance insurance in Ukraine. According to WTW General Director Vyacheslav Andriyko, for organizations contemplating entry into the Ukrainian market, due consideration should be given to the increasing emphasis on the duty of care and the necessity of providing the best possible protection to their staff and contractors working on behalf of the insured organization.
What can be covered?
Death
Disability (total or partial, temporary or permanent) from any accidental cause
Emergency medical assistance costs, up to USD 750,000 for every loss, including:
– A 24-hour helpline to assist in medical emergencies
– In-country first responder medical teams
– Existing relationships and contracts with local medical providers
– Evacuation and repatriation when medically necessary
– The ability to arrange payment with local hospitals and service providers
