CMS Rebuilding Ukraine Mid-2025 update
12/ 09/ 2025
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 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’s 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’s defence sector presented for the first time as part of the investment landscape.
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’s reconstruction and recovery is the trackrecord of solid follow-through—real money, real results and real momentum. Europe and its partners have taken a real stake in Ukraine’s future.
Investment and Funding Progress.
International financing
Q2 2025 announcements:
The Ukraine Investment Framework (UIF) announced a EUR 2.3bn package of grants and equity to mobilise large-scale private investments.
European Flagship Fund for the Reconstruction of Ukraine launched by the European
The US-Ukraine Reconstruction Investment Fund, envisioned under the US-Ukraine Minerals Deal, has been
The following IFIs offer loan and investment programmes:
The European Bank for Reconstruction and Development (EBRD)
US International Development Finance Corporation (DFC)
European Investment Bank (EIB)
International Finance Corporation (IFC)
WorldBank
Initiatives in 15 countries in Europe, North America and Asia encourage their domestic companies to participate in Ukraine’s reconstruction. In Q1 2025, new funds from Japan and Finland were announced.
Risk insurance and investment guarantees
Q2 2025 announcements:
MIGA issued EUR 185m in new
EBRD and the European Commission announced the Ukraine Renewable Energy Risk Mitigation Mechanism (URMM) specifically to de-risk renewable energy investments.
Ten European countries, including Italy, Germany, France and Spain, have joined the InvestEU export credit facility to support trade with Ukraine.
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.
Government of Ukraine programmes
Q2 2025 announcements:
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.
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.
Key Ukrainian agencies and programmes include:
Ukraine Business Development Fund
State Agency for the Reconstruction and Development of Infrastructure
Programme of State Support for Investment Projects in Ukraine
Decarbonization Fund and the Ukrainian National Decarbonization Platform
Ukrainian tax incentives
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.
Key Sectors and Opportunities.
Defence
Last year saw USD 1.5bn in investments in Ukraine’s 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’s joint weapons production now includes 21 initiatives with international partners. Over ten venture funds are actively investing in Ukrainian defence tech.
Q2 2025 announcements:
BraveTech, an EU–Ukraine platform for defence-tech innovation and production scaling, was announced with EUR
TEKEVER (Portugal) has raised USD 500m to produce drones used by the Ukrainian
Rakuten (Japan) will help Ukrainian defence startups scale operations
Ukraine announced defence industry projects under the EUR 150b SAFE loan programme for drones, ammunition and missiles.
The Defence City initiative will offer tax benefits and state support for defence-industrial complex enterprises in
Energy and renewables
Ukraine’s energy sector is Ukraine’s largest-performing industry, earning USD 21bn in 2024. Sustainability is a pillar of Ukraine’s National Recovery Plan, and Ukraine’s infrastructure is moving to renewables and smart systems. The first quarter of 2025 saw continued new developments in wind power and Ukraine’s first biomethane exports to the EU. Established and new players in Ukraine are rapidly developing battery and energy storage tech.
Q2 2025 announcements:
Posco International plans a USD 106m waste-fired power plant in Odesa with a 40 MW
Ukrainian startup SorbiForce is seeking USD 5m to produce sustainable batteries made from carbon, water and
DTEK is raising EUR 300m for energy storage facilities in Ukraine with a total capacity of up to 500
IDS Ukraine Group launched a 4 MW solar power plant at the Myrhorod Mineral Water Plant.
BGV Group produced a prototype lithium-ion battery using Ukrainian
Wien Energie and UDP Renewables will develop a hydrogen plant in Volyn for EU
Logistics and transportation
In 2024, container transportation increased 28%, cargo handling in Ukraine’s ports increased 57%, and export transportation rose by 51.2%.The first quarter of 2025 saw 250,000 m² of new warehouse space announced, 25,000 tons of capacity added to Ukraine’s deepest container terminal, and the opening of a new multimodal terminal.
Warehouse construction in Ukraine is set to reach record levels in 2025 and still fall short of demand.
Q2 2025 announcements:
Medlog (Switzerland) acquired stakes in N’UNIT and Mostyska cross-border logistics
TAS Group will build a factory capable of producing 1,200 freight cars
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.
HHLA acquired a 60% stake in the Eurobridge multimodal terminal in
A Danube bridge in the Odessa region worth USD 30m will connect Ukraine with
Manufacturing and industrial parks
Ukraine’s 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—including glass, plastics and heavy equipment.
Q2 2025 announcements:
The Bila Tserkva Industrial Park will attract USD 250m in investments by
Peikko (Finland) will open a EUR 3m building materials plant near
AXOR Industry invested EUR 40m in its Dnipro hardware
Calmit (Slovakia) will construct a building materials facility in Batiovo,
Color Sim will invest EUR 1m to upgrade its building materials production facility in the Rivne
Agriculture and agro-processing
In 2024, Ukraine’s 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.
Q2 2025 announcements:
OKKO Group will complete a 60,000-ton elevator and is planning a bioethanol plant worth EUR
Ma’Rijany Hemp launched Ukraine’s largest hemp processing facility in Zhytomyr with a USD 20m
Desna Farm will build a modern potato storage facility in Chernihiv with a capacity of 8,000-10,000
Interjuice Bukovyna will build a juice concentrate plant in Chernivtsi to process 1,500 tons of raw fruit per
Zakhidnyy Buh invested USD 24m in a production plant for durum wheat
AgHoldCo will construct over 400 grain silos with a total capacity exceeding five million
MHP agro-holding launched MAG Fertilizers, expanding into liquid complex
IT giant SoftServe acquired Mountain Milk and Mukko Milk in a dairy farm project worth USD
A new European partner.
Ukraine’s progress towards EU integration is creating a stable and attractive destination for long-term, impactful investments
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.
Customs and import–export harmonisation is largely
Ukraine’s capital markets now integrate European law and follow the principles of the International Organization of Securities Commissions (IOSCO).
Ukraine’s energy sector is integrated with Ukraine’s electricity grid and natural gas network are accredited by the European Network of Transmission System Operators (ENTSO) and are governed by the REMIT Law.
Ukraine’s legislation has passed EU compliance screening, enabling Free Movement of Goods chapter negotiation with EU.
Ukraine’s product monitoring regulations meet EU requirements for industrial visa-free
CMS Can Help.
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:
