Ukraine, despite the ongoing war and related geopolitical tensions, remains a country with significant economic resilience and growing openness to investment. Local companies not only survived, but in many cases continue to develop. The KPMG report "Your business in Ukraine" is a practical guide to the realities of investing in this country – from tax regulations, through currency restrictions and war risk, to required licenses and permits. In addition to specific operational guidance, the report presents a current picture of the Ukrainian economy and the potential of key sectors, such as agriculture, energy, IT and infrastructure, indicating their development directions and areas of particular attractiveness to investors. This is a valuable source of knowledge for companies that want to consciously plan their presence in the Ukrainian market.
Development and investment potential of Ukraine
The Ukrainian economy shows signs of stable recovery.
Although the war in Ukraine has been ongoing for over three years, the country has recorded GDP growth since 2023. The National Bank of Ukraine (NBU) predicts that this trend will continue – in 2025–2026, the economy is expected to grow by 4.3–4.6%. Although inflation accelerated to 8.6% year-on-year in June 2024, according to NBU forecasts, it will begin to gradually decline next year. This is expected to be the result of weakening price pressure in global markets and improving conditions in the energy and agriculture sectors.
Energy availability and infrastructure, as well as labor market strength, determine the resilience of the Ukrainian economy.
Energy security and efficient logistics supported by coherent infrastructure allow operational risks to be minimized. At the same time, access to qualified workers enables the implementation of more advanced business projects. These three factors form the foundation of daily business operations and increase the competitiveness of the entire Ukrainian economy in the international market.
The reconstruction of Ukraine will cost 486 billion dollars over a decade.
According to estimates from February 2024, based on the third Rapid Damage and Needs Assessment (RDNA3) prepared by the United Nations, the reconstruction of Ukraine following the Russian invasion will require expenditures on the order of 486 billion USD over the next 10 years. Such a scale of needs opens the door for private and institutional investors, whose involvement will play a key role in the country's reconstruction process.
Ukraine, with a well-educated workforce, a developing technology sector and growing demand for modern infrastructure, offers today one of the most promising markets for foreign investors in Europe. Foreign direct investment inflows to Ukraine in 2024 fell by 25%, but as much as 71.6% of it came from reinvested profits, confirming the commitment of firms already on the market. In this context, Polish enterprises stand out particularly – since the beginning of the invasion, nearly 300 of them have been established in Ukraine, and the value of Polish exports has increased to 9.4 billion euros. This is evidence that Polish business not only maintained relations with Ukraine, but actively develops them. In parallel, the European Union plans to transfer 50 billion euros to Ukraine by 2027, which could significantly boost the private sector. Hundreds of billions of dollars needed to rebuild the country over a decade create unprecedented potential for investors in the construction, energy, logistics and technology sectors. The challenges are obvious, but the scale of opportunities – equally enormous. For companies ready for long-term investments, this could be one of the most strategic directions in the region.
Strength of selected sectors of the Ukrainian economy
Energy and utilities
In the face of ongoing threats to infrastructure, the Ukrainian energy sector remains one of the most strategic pillars of the economy and one of the priority investment directions. The government is consistently working to transform the country into a regional clean energy center, developing renewable sources – primarily wind, solar and nuclear energy – and supporting hydrogen technologies, biofuels and energy storage. The estimated investment potential of the sector is over 380 billion USD. The growing number of projects in the sector indicates a high level of its resilience and the country's determination to build energy independence in the spirit of sustainable development.
Defense sector
The Ukrainian defense sector is in a phase of dynamic development, stimulated directly by military needs and growing demand for domestic technological solutions. In 2023, its value tripled, reaching 3 billion USD, and forecasts point to further growth to 5 billion USD in 2025. Although state entities still play an important role, the market is characterized by a large presence of private companies that implement innovative solutions tested in real combat conditions – which is a significant competitive advantage. Ukraine is actively seeking international partners, offering opportunities for technological, production and export cooperation, which can significantly strengthen the sector's potential and contribute to the country's economic development.
Agriculture
Before the full-scale Russian invasion, Ukraine was one of the five largest grain exporters in the world, accounting for 10% of global wheat exports, over 14% of corn exports and over 47% of sunflower oil exports. Despite the ongoing war, this country still plays an important role in global markets for these goods, maintaining over 10% share in international trade. Currently, the most promising areas for investment in Ukrainian agriculture are storage and processing infrastructure, development of local logistics and energy chains, and support for small and medium-sized farms cooperating with large producers.
Mining and mineral resources
The mineral raw materials sector in Ukraine, despite ongoing military aggression, remains one of the pillars of the economy and an important element of its resilience. It includes the extraction of abundant natural resources, such as iron ore, coal, natural gas, oil and metals, and still shows significant growth potential. The high level of resources, the strategic importance of raw materials for the country's reconstruction and growing demand in the international market mean that from the perspective of foreign companies, expenditures on Ukrainian mining and extraction industry can become an attractive and long-term investment.
Transport and infrastructure
Due to its strategic location at the intersection of Europe and Asia and its developed transport network, Ukraine has significant potential to serve as a logistics hub for the region. Despite serious disruptions caused by the war, the transport and logistics sector has proven its flexibility and ability to adapt – companies are developing new trade routes, strengthening supply chain resilience and modernizing infrastructure. These activities not only enable continued exports, but also increase the investment attractiveness of the sector, which plays an important role in Ukraine's economic reconstruction and integration with the European market.
Information technology
The Ukrainian IT sector also remains one of the pillars of the economy, showing exceptional resilience despite the ongoing war. This industry, accounting for over 4% of GDP and almost 40% of exports in 2024, attracts investor attention thanks to a highly qualified workforce, developed STEM education and dynamically developing digitalization of services. An important role in stimulating development is played by the government project Diia.City – a special tax and regulatory regime that provides favorable conditions for technology companies and promotes long-term industry growth. Thanks to such solutions, the Ukrainian IT industry strengthens its position as a sector strategic for the country's future.
Banking
The Ukrainian banking sector plays an important role in economic reconstruction – it focuses on digitalization, supporting SMEs and financing green transformation. Digital transformation already brings banks significant competitive advantages – it enables improved profitability, better service personalization and optimization of operating costs. At the same time, the SME financing segment is developing dynamically, supported by both local banks and international institutions offering loans, grants and guarantees to entrepreneurs affected by the consequences of war. Additionally, the banking sector is involved in supporting investments in renewable energy sources in public infrastructure, which increases the country's energy resilience.
Poland remains one of Ukraine's most important trading partners, and its role as an exporter – including machinery, transport equipment, electronic equipment and chemical products – is gaining importance in the conditions of war-related logistics disruptions and limited local production. Meanwhile, the growth in net imports to Ukraine, which in 2023 was more than three times higher than before the war, shows the scale of Ukrainian industry and economy needs. Imports not only fill shortages, but in many cases determine the functioning of critical sectors. In turn, Ukrainian exports – despite significant declines in transport and consulting services – are beginning to recover thanks to increases in technical and commercial services. Very important in this context is the functioning trade route through the Black Sea, which restores a real possibility of shipping goods. In the context of transformation of Ukraine's foreign trade structure, partners such as Poland can not only meet current market needs, but also actively participate in its reconstruction and restructuring.
Legislative, tax facilitations and government support
Simplified business establishment process
Ukraine is consistently simplifying the process of establishing and conducting business activities, adapting the legislative framework to the needs of investors and entrepreneurs. In recent years, a series of solutions have been introduced aimed at increasing transparency, reducing administrative barriers and shortening the time needed to start business operations. Selected ones include:
Digitalization and acceleration of the business registration process
Abolition of the obligation to confirm registration data annually
Simplification of liquidation and restructuring procedures
Expansion of notaries' powers to perform functions of record-keepers
Introduction of the "silent consent" system and declarations substituting, in many industries, the obligation to obtain licenses or permits
Changes in the tax system
In response to the Russian invasion, Ukraine introduced a series of changes to the Tax Code to adapt the system to the realities of war. These include, among others, temporary exemptions from tax penalties, suspension of tax inspections and relief for activities related to defense, charitable assistance and supplies essential from the state's perspective. The regulations are continuously reviewed and updated – selective tax increases are also introduced if necessary.
Government support
The Government of Ukraine conducts an active economic support policy, offering diverse investment incentive instruments tailored to the needs of small, medium and large enterprises. The aim of these activities is to stimulate local economic development and increase the country's attractiveness to foreign capital. Support focuses on three main areas: access to financing, infrastructure development and implementation of strategically important projects.
Sectoral support offered by the Ukrainian government is aimed at key sectors of the economy, such as construction, industrial processing and agriculture. The YeOselya program supports the construction sector, while meeting the housing needs of the population – 9 billion UAH is allocated for this purpose in 2025. For the processing industry, non-repayable grants of up to 8 million UAH are available for the purchase of machinery and equipment, which is intended to stimulate modernization and production development. At the same time, industrial park infrastructure is being developed – the state budget provides 1 billion UAH for their expansion and modernization. In the agricultural sector, entrepreneurs can count on support in the form of compensation: 25% of the costs of purchasing agricultural machinery produced in Ukraine and subsidies for mine clearance of areas used for agricultural production. Such targeted support is intended not only to stimulate the development of individual industries, but also to strengthen their resilience and competitiveness in the conditions of economic reconstruction.
Examples of forms of support:
- preferential loans (the "5-7-9%" program) for small and medium-sized companies, supporting entrepreneurship development (budget: 18 billion UAH),
- grants and capital subsidies for projects involving significant investments – projects exceeding the value of 12 million EUR can receive up to 30% return on investment expenditures and additional organizational and administrative support,
- reimbursement of equipment purchase costs – return of 15% of the costs of purchasing machinery and equipment of Ukrainian production (planned budget: 1 billion UAH).
Additional sources of financing include international initiatives, such as the Ukrainian Investment Framework (UIF), providing guarantees and blended financing in strategic sectors, including energy, transport, agriculture and digital transformation.
War risk insurance
The availability of investment insurance mechanisms against war and political risk is one of the conditions for reconstruction and resumption of business activities in the context of armed conflict. In 2024, Ukraine adopted a law enabling insurance and reinsurance of foreign and domestic investments, as well as investment loans granted by Ukrainian banks. The Ukrainian Export Credit Agency is responsible for implementing these activities.
In parallel, Ukraine's Ministry of Economy is actively cooperating with international financial institutions to develop investor protection programs. The most important partners include: the World Bank, the Multilateral Investment Guarantee Agency (MIGA), which since the beginning of the invasion has provided guarantees worth over 324 million USD, as well as the US International Development Finance Corporation (DFC), developing projects with a total value of over 380 million USD. The European Bank for Reconstruction and Development (EBRD) and export credit agencies from partner countries are also involved in these activities. Joint initiatives aim to increase capital security and build confidence of foreign investors in the Ukrainian market.
KPMG report "Your Business in Ukraine"
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