A window of opportunity for the valiant: how to invest in Ukraine today

Ukraine's economy continues to function in spite of the ongoing war, forced to adapt to do so under extreme conditions. As a lawyer who works with Ukrainian companies on a daily basis, I can confirm that the three main challenges for business today are infrastructure destruction, energy supply instability, and staff shortages.

Infrastructure remains vulnerable: numerous facilities have already been destroyed or severely damaged and this systematically complicates logistics, disrupts supply chains, and hinders foreign trade. According to UN estimates (RDNA4, February 2025), Ukraine will need about USD78 billion to rebuild this sector, and the state of transport infrastructure will largely determine the pace of any economic recovery.

The energy sector also remains one of the most vulnerable sectors of the Ukrainian economy.  As of October 2024, Ukraine lost more than 9 gigawatts of generation capacity as a result of targeted shelling. Businesses are therefore forced to invest in autonomous sources of power such as generators, mini-hydroelectric power plants, and batteries. This can increase the cost of operations and reduce competitiveness.

Finally, one of the most pressing challenges facing the Ukrainian economy is a shortage of skilled labour. More than 7.7 million citizens have been displaced to foreign countries by the conflict, and over a million more have been mobilised into the Armed Forces of Ukraine. This sharply limits access to professional labour in key sectors and puts serious pressure on the labour market, both in the short and long term.

In defiance of Russia’s ongoing military aggression, Ukraine has already demonstrated real examples of large-scale foreign investment. For example, the French NJJ Holding signed a deal in the telecommunications and media sector worth more than USD650 million: one of the largest deals this sector has seen in recent years and a vivid example of sustained confidence in the Ukrainian market.

Meanwhile, Ukraine’s renewable energy sector has seen DTEK Renewables invest EUR450 million in the construction of the 500 MW Tiligulska 2 wind farm, demonstrating both technological innovation and a strategic focus on increasing energy independence and addressing power supply challenges.

German defence giant Rheinmetall also announced plans to invest more than EUR300 million in building tank and ammunition plants, building on its prior investments in Ukrainian arms manufacturing facilities. This new investment represents the first project of this scale in Ukraine by a Western defence company.

Ireland's Kingspan Group, for its part, will invest EUR280 million to create an industrial campus focusing on innovative construction technologies, contributing to modernising the local construction industry and laying the foundation for the sustainable development of industrial hubs in Ukraine.

Legal mechanisms for investment in Ukraine have gradually adapted to the new realities facing the country, including martial law and the need for large-scale reconstruction. Joint ventures remain one of the most common forms of incorporation, especially for companies operating in the defence sector; whereby partnerships with state-owned companies are combined with access to concessional financing provided by the government to support strategic industries. Such corporate structures enable companies to distribute risks while taking advantage of access to government support and financial resources.

Special purpose vehicles registered outside of Ukraine have also seen an increase in activity, providing greater flexibility in terms of financial structuring and the ability to attract financing in accordance with international standards.

Industrial parks and special investment agreements are also of great interest as these can provide tax benefits, accelerate administrative procedures, simplify land allocation and, last but not least, offer greater regulatory predictability.

In the extractive sector, production sharing agreements remain a key instrument, providing stable, long-term conditions for investment in oil, gas, and critical minerals. Long-term auctions for ancillary services and generation capacity, meanwhile, play an important role in the energy sector by offering clear “rules of the game” and predictable returns for investors. For large-scale infrastructure projects, including transportation and social housing, public-private partnerships (PPPs) are increasingly being used to effectively combine public resources with private investment and mitigate project risks.

These structures are accompanied by a comprehensive system of legal guarantees, with investors relying on stabilisation clauses in the relevant legislation to make it impossible to unilaterally change the terms of investment. The ability to apply foreign law and resolve disputes via international arbitration also guarantees fair and impartial conflict resolution. Tax benefits and exemptions, as well as reimbursement for infrastructure costs, are also important advantages, while simplified land allocation facilitates prompt project implementation. Currency risks are also reduced by the ability to peg payments to the euro, ensuring financial stability and sidestepping any potential volatility.

The symbolism of the moment matters, both metaphorically and financially. Investing in Ukraine now puts you at the heart of rebuilding infrastructure and businesses. In choosing to invest, you are making a strategic choice to support a country defending its territory on the front line and upholding the fundamental values of Europe: freedom, democracy, and the rule of law. By investing in a country that actively embodies these ideals, you send a signal to the global market: your business, while focused on profit, is also part of a democratic economic front.

Are there risks? Undoubtedly. But the potential impact your investment makes, not to mention the returns from being a first mover, can be even higher. Ukraine is no longer just reacting to circumstances, it is systematically changing how its economy functions into a more modern and investor-friendly environment: reforming the regulatory field, liberalising currency control, creating predictable legal structures, launching large-scale industrial initiatives, and providing insurance mechanisms against military and political risks. We now find ourselves in one of those rare, generational moments when a country is forming a new model for raising capital that is flexible, open, and internationally compatible.

Large multinational players are already entering Ukraine, forming new markets, and distributing risk through JVs and PPPs. International investors are taking advantage of special tax regimes, entering into PSAs, and receiving protection through foreign law and arbitration mechanisms. Such companies are not waiting for the perfect moment to arise, they are proactive in creating it for themselves. For those who are able to think strategically, Ukraine represents a new platform to make economic opportunities a reality.

As the saying goes, audentes fortuna iuvat. Fortune favours the bold.

Now is the time to be bold.