Transformation Ukraine

Ukraine’s reconstruction and its aspiration to join the EU following Russia’s attack pose major challenges - but also open up new prospects for investment and partnerships. On this page, we provide an overview of current developments, potentials, and challenges related to Ukraine’s economic transformation. Through concrete examples and comparisons with historical transformation processes, we illustrate why engaging now can be worthwhile.

Since gaining EU candidate status in June 2022, Ukraine has been advancing bold reforms – focusing on strengthening the rule of law, streamlining bureaucracy, and opening its economy. Despite ongoing challenges, the economy grew by more than five percent in 2023, supported by international aid and investment. Initiatives such as the EU Investment Framework (€7.8 billion in guarantees) are enhancing investment security and opening up opportunities for companies of all sizes.

German reunification and the EU’s eastern enlargement illustrate how structural reforms and deeper integration can drive economic growth. Ukraine is following a similar path – with growing market openness, alignment with EU standards, and rising international confidence. The aim is to build a modern, globally connected economy anchored in stable partnerships.

Reconstruction is progressing in three key phases: damage repair, modernisation, and innovation. In regions less affected by the war, infrastructure restoration is already underway, while long-term development projects are being initiated. The National Recovery Plan provides companies with clear entry points – ranging from construction and infrastructure to sustainable technologies and future-oriented industries.

Many parts of Ukraine's infrastructure - whether roads, energy supply or public buildings - are damaged and need to be restored. Companies can participate in projects that modernise transport systems, expand energy networks or develop new supply solutions. These projects contribute to economic development and at the same time help to stabilise the affected regions in the long term.

In February 2025, the fourth Rapid Damage and Needs Assessment (RDNA4) estimated Ukraine's reconstruction and recovery costs at approximately 506 billion euros over the next decade. Public funds alone are insufficient to cover this amount. Some investors hesitate due to corruption or bureaucratic hurdles. However, the Ukrainian government is focusing on enhancing legal certainty, reducing bureaucracy and dismantling oligarchic structures to overcome these obstacles. International institutions such as the European Bank for Reconstruction and Development offer investment guarantees and insurance against war-related damages to mitigate risks.

Good to know: Ukraine is implementing reforms that are gradually aligning its markets with European standards. Notable progress in the judicial and administrative sectors is strengthening international investors’ confidence and easing access to new markets. These developments support securing long-term investments and boosting the country’s competitiveness.

A European market in transition: Why engagement pays off
The reconstruction of Ukraine presents a major challenge but simultaneously opens up long-term economic prospects. The modernisation of diverse sectors creates sustainable prospects that companies can already consider today. Historical examples such as German reunification and the EU’s eastward expansion demonstrate how reforms and targeted investments foster growth and stability. Investing in Ukraine also contributes to economic stability and reconstruction, benefiting both the country and its people.