{"id":786347,"date":"2025-09-12T16:06:36","date_gmt":"2025-09-12T13:06:36","guid":{"rendered":""},"modified":"2025-09-12T16:21:22","modified_gmt":"2025-09-12T13:21:22","slug":"cms-rebuilding-ukraine-mid-2025-update","status":"publish","type":"post","link":"https:\/\/new.eba.com.ua\/en\/cms-rebuilding-ukraine-mid-2025-update\/","title":{"rendered":"CMS Rebuilding Ukraine Mid-2025 update"},"content":{"rendered":"

The Ukraine Recovery Conference in Rome has concluded with significant funding announcements for reconstruction, investment and development. This was the fourth annual Ukraine Recovery Conference, and thelargest and most impactful to date, gathering over 6,000 participants from 70 countries.<\/p>\n

At the conference, the Ukraine Investment Framework, a mechanism for delivering funds from the EUR 50bn Ukraine Facility to investible reconstruction projects, announced a new package of grants and equity to unlock EUR 10bn in investments across energy, housing, private sector projects and critical infrastructure. The European Commission, together with the EIB and development banks from Germany, France, Italy and Poland, launched the EuropeanFlagship Fund for the Reconstruction of Ukraine, aiming to deploy EUR 500m into Ukraine\u2019s strategic sectors by 2026. Well over 100 agreements pledging more than EUR 10bn were signed, mobilising investments, insurance and de-risking support across housing, infrastructure, logistics and green energy, with Ukraine\u2019s defence sector presented for the first time as part of the investment landscape.<\/p>\n

Political and military support for Ukraine can seem a rollercoaster of pledged support, hesitant walk-backs, and renewed commitments. What is striking about investments in Ukraine\u2019s reconstruction and recovery is the trackrecord of solid follow-through\u2014real money, real results and real momentum. Europe and its partners have taken a real stake in Ukraine\u2019s future.<\/p>\n

\"\"<\/a><\/p>\n

Investment and Funding Progress<\/strong><\/h4>\n

International financing<\/strong><\/p>\n

Q2 2025 announcements:<\/p>\n

    \n
  • The Ukraine Investment Framework (UIF) announced a EUR 2.3bn package of grants and equity to mobilise large-scale private investments.<\/li>\n
  • European Flagship Fund for the Reconstruction of Ukraine launched by the European<\/li>\n
  • The US-Ukraine Reconstruction Investment Fund, envisioned under the US-Ukraine Minerals Deal, has been<\/li>\n<\/ul>\n

    The following IFIs offer loan and investment programmes:<\/p>\n

      \n
    • The European Bank for Reconstruction and Development (EBRD)<\/li>\n
    • US International Development Finance Corporation (DFC)<\/li>\n
    • European Investment Bank (EIB)<\/li>\n
    • International Finance Corporation (IFC)<\/li>\n
    • WorldBank<\/li>\n<\/ul>\n

      Initiatives in 15 countries in Europe, North America and Asia encourage their domestic companies to participate in Ukraine\u2019s reconstruction. In Q1 2025, new funds from Japan and Finland were announced.<\/p>\n

      Risk insurance and investment guarantees<\/strong><\/p>\n

      Q2 2025 announcements:\u00a0<\/em><\/strong><\/p>\n

        \n
      • MIGA issued EUR 185m in new<\/li>\n
      • EBRD and the European Commission announced the Ukraine Renewable Energy Risk Mitigation Mechanism (URMM) specifically to de-risk renewable energy investments.<\/li>\n
      • Ten European countries, including Italy, Germany, France and Spain, have joined the InvestEU export credit facility to support trade with Ukraine.<\/li>\n<\/ul>\n

        The Multilateral Investment Guarantee Agency (MIGA), DFC, EBRD, UK, Germany, France and Japan offer war risk insurance for investments in Ukraine, and 14 export credit agencies are guaranteeing investments in Ukraine.<\/p>\n

        Government of Ukraine programmes<\/strong><\/p>\n

        Q2 2025 announcements:<\/p>\n

        Two programmes to prepare major infrastructure and reconstruction projects for investment were announced. Ukraine FIRST, a EUR 30mfacility from the EBRD and partners, and the PREPARE Project, a USD 200m World Bank initiative, will support feasibility studies, technical assessments and procurement planning. The EIB also announced EUR 100m in loans to Ukrainian municipalities for critical infrastructure. As a result, municipal-level governments have joined the landscape of reconstruction programmes.\u00a0<\/p>\n

        Foreign investors can directly access debt instruments from the National Bank of Ukraine (NBU). Rules for public-private partnerships (PPPs) with both federal and regional governments offer improved guarantees for private partners. State support is available for qualifying foreign investments. A privatisation programme of state-owned assets is ongoing.<\/p>\n

        Key Ukrainian agencies and programmes include:<\/p>\n

          \n
        • Ukraine Business Development Fund<\/li>\n
        • State Agency for the Reconstruction and Development of Infrastructure<\/li>\n
        • Programme of State Support for Investment Projects in Ukraine<\/li>\n
        • Decarbonization Fund and the Ukrainian National Decarbonization Platform<\/li>\n<\/ul>\n

          Ukrainian tax incentives<\/strong><\/p>\n

          Tax and interest relief and infrastructure subsidies are available for new industrial parks. The Diia City virtual economic free zone reduces tax and regulatory burdens for participating tech companies.<\/p>\n

          Key Sectors and Opportunities<\/strong><\/h4>\n

          Defence<\/strong><\/p>\n

          Last year saw USD 1.5bn in investments in Ukraine\u2019s defence sector, with Ukrainian firms now exporting expertise and partnering with defence sectors in other countries. Ukraine produces over 2.2 million FPV drones annually and has increased cruise missile production by 700% year-on-year. In the first quarter of 2025, defence firms in Germany, Norway, Sweden, Finland and US announced new production, repair facilities, joint ventures, and partnerships in Ukraine. Ukraine\u2019s joint weapons production now includes 21 initiatives with international partners. Over ten venture funds are actively investing in Ukrainian defence tech.<\/p>\n

          Q2 2025 announcements:<\/p>\n

            \n
          • BraveTech, an EU\u2013Ukraine platform for defence-tech innovation and production scaling, was announced with EUR<\/li>\n
          • TEKEVER (Portugal) has raised USD 500m to produce drones used by the Ukrainian<\/li>\n
          • Rakuten (Japan) will help Ukrainian defence startups scale operations<\/li>\n
          • Ukraine announced defence industry projects under the EUR 150b SAFE loan programme for drones, ammunition and missiles.<\/li>\n
          • The Defence City initiative will offer tax benefits and state support for defence-industrial complex enterprises in<\/li>\n<\/ul>\n

            Energy and renewables<\/strong><\/p>\n

            Ukraine\u2019s energy sector is Ukraine\u2019s largest-performing industry, earning USD 21bn in 2024. Sustainability is a pillar of Ukraine\u2019s National Recovery Plan, and Ukraine\u2019s infrastructure is moving to renewables and smart systems. The first quarter of 2025 saw continued new developments in wind power and Ukraine\u2019s first biomethane exports to the EU. Established and new players in Ukraine are rapidly developing battery and energy storage tech.<\/p>\n

            Q2 2025 announcements:<\/p>\n

              \n
            • Posco International plans a USD 106m waste-fired power plant in Odesa with a 40 MW<\/li>\n
            • Ukrainian startup SorbiForce is seeking USD 5m to produce sustainable batteries made from carbon, water and<\/li>\n
            • DTEK is raising EUR 300m for energy storage facilities in Ukraine with a total capacity of up to 500<\/li>\n
            • IDS Ukraine Group launched a 4 MW solar power plant at the Myrhorod Mineral Water Plant.<\/li>\n
            • BGV Group produced a prototype lithium-ion battery using Ukrainian<\/li>\n
            • Wien Energie and UDP Renewables will develop a hydrogen plant in Volyn for EU<\/li>\n<\/ul>\n

              Logistics and transportation<\/strong><\/p>\n

              In 2024, container transportation increased 28%, cargo handling in Ukraine\u2019s ports increased 57%, and export transportation rose by 51.2%.The first quarter of 2025 saw 250,000 m\u00b2 of new warehouse space announced, 25,000 tons of capacity added to Ukraine\u2019s deepest container terminal, and the opening of a new multimodal terminal.<\/p>\n

              Warehouse construction in Ukraine is set to reach record levels in 2025 and still fall short of demand.<\/p>\n

              Q2 2025 announcements:<\/p>\n

                \n
              • Medlog (Switzerland) acquired stakes in N\u2019UNIT and Mostyska cross-border logistics<\/li>\n
              • TAS Group will build a factory capable of producing 1,200 freight cars<\/li>\n
              • Agrosem announced EUR 20m investment in a dry port on the Ukraine-Poland border and Weststar Group announced plans to construct a second dry port with a capacity of 10,000 containers annually.<\/li>\n
              • HHLA acquired a 60% stake in the Eurobridge multimodal terminal in<\/li>\n
              • A Danube bridge in the Odessa region worth USD 30m will connect Ukraine with<\/li>\n<\/ul>\n

                Manufacturing and industrial parks\u00a0<\/strong><\/p>\n

                Ukraine\u2019s industrial park sector saw 55 new parks registered across 15 regions last year; 70% of these had investors at registration. Companies from Germany, Poland, Canada and others are investing in production facilities in Ukraine, notably for steel, glass, lumber and other building materials. In the first quarter of 2025, new industrial park registrations saw investments from Switzerland, Turkey, Austria and South Korea across diverse sectors\u2014including glass, plastics and heavy equipment.<\/p>\n

                Q2 2025 announcements:\u00a0<\/strong><\/p>\n

                  \n
                • The Bila Tserkva Industrial Park will attract USD 250m in investments by<\/li>\n
                • Peikko (Finland) will open a EUR 3m building materials plant near<\/li>\n
                • AXOR Industry invested EUR 40m in its Dnipro hardware<\/li>\n
                • Calmit (Slovakia) will construct a building materials facility in Batiovo,<\/li>\n
                • Color Sim will invest EUR 1m to upgrade its building materials production facility in the Rivne\u00a0<\/li>\n<\/ul>\n

                  Agriculture and agro-processing\u00a0<\/strong><\/p>\n

                  In 2024, Ukraine\u2019s domestic agro-processing increased 12%, attracting USD 800m in private investment. Bayer and other international companies have expanded seed production capacities in Ukraine. Fertiliser and pesticide production is growing, and the sector is adopting AI-driven yield monitoring. In the first quarter of 2025, Ukraine joined the ePhyto digital certificate system, enabling faster exports to 124 countries and saw over USD 230m in new investment.<\/p>\n

                  Q2 2025 announcements:\u00a0<\/strong><\/p>\n

                    \n
                  • OKKO Group will complete a 60,000-ton elevator and is planning a bioethanol plant worth EUR<\/li>\n
                  • Ma\u2019Rijany Hemp launched Ukraine\u2019s largest hemp processing facility in Zhytomyr with a USD 20m<\/li>\n
                  • Desna Farm will build a modern potato storage facility in Chernihiv with a capacity of 8,000-10,000<\/li>\n
                  • Interjuice Bukovyna will build a juice concentrate plant in Chernivtsi to process 1,500 tons of raw fruit per<\/li>\n
                  • Zakhidnyy Buh invested USD 24m in a production plant for durum wheat<\/li>\n
                  • AgHoldCo will construct over 400 grain silos with a total capacity exceeding five million<\/li>\n
                  • MHP agro-holding launched MAG Fertilizers, expanding into liquid complex<\/li>\n
                  • IT giant SoftServe acquired Mountain Milk and Mukko Milk in a dairy farm project worth USD<\/li>\n<\/ul>\n

                    A new European partner<\/strong><\/h4>\n

                    Ukraine\u2019s progress towards EU integration is creating a stable and attractive destination for long-term, impactful investments<\/p>\n

                      \n
                    • Ukraine is a member of the EU Single Market Program and participates in other pan-European programmes offering business opportunities: Horizon Europe, Creative Europe, and Digital Europe among others.<\/li>\n
                    • Customs and import\u2013export harmonisation is largely<\/li>\n
                    • Ukraine\u2019s capital markets now integrate European law and follow the principles of the International Organization of Securities Commissions (IOSCO).<\/li>\n
                    • Ukraine\u2019s energy sector is integrated with Ukraine\u2019s electricity grid and natural gas network are accredited by the European Network of Transmission System Operators (ENTSO) and are governed by the REMIT Law.<\/li>\n
                    • Ukraine\u2019s legislation has passed EU compliance screening, enabling Free Movement of Goods chapter negotiation with EU.<\/li>\n
                    • Ukraine\u2019s product monitoring regulations meet EU requirements for industrial visa-free\u00a0<\/li>\n<\/ul>\n

                      CMS Can Help<\/strong><\/h4>\n

                      We are helping companies inside and outside Ukraine, both multinational and Ukrainian, tooperate and succeed in Ukraine in all sectors. With lawyers qualified in Ukrainian and UK lawoperating in Kyiv since 2007, CMS can advise on:<\/p>\n

                      \"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

                      The Ukraine Recovery Conference in Rome has concluded with significant funding announcements for reconstruction, investment and development. This was the fourth annual Ukraine Recovery Conference, and thelargest and most impactful to date, gathering over 6,000 participants from 70 countries. At the conference, the Ukraine Investment Framework, a mechanism for delivering funds from the EUR 50bn […]<\/p>\n","protected":false},"author":4489,"featured_media":634864,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[15576,15575],"tags":[],"class_list":["post-786347","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-articles-en","category-news-and-articles-from-companies-en","company-16421"],"_links":{"self":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/786347","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/users\/4489"}],"replies":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/comments?post=786347"}],"version-history":[{"count":0,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/posts\/786347\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media\/634864"}],"wp:attachment":[{"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/media?parent=786347"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/categories?post=786347"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.eba.com.ua\/en\/wp-json\/wp\/v2\/tags?post=786347"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}