Current news on Rebuild Ukraine topic

How Much Foreign Direct Investment Has Ukraine Attracted During the Full-Scale War?

Despite the ongoing full-scale war, Ukraine continues to attract foreign direct investment (FDI), although at significantly lower levels than before the invasion. According to the National Bank of Ukraine, net FDI inflows reached USD 7.32 billion in 2021, the highest level recorded during the 2015–2025 period.

Following the outbreak of the full-scale war, investment activity declined sharply due to heightened security risks, damage to production facilities, disrupted supply chains, and overall economic uncertainty. As a result, net FDI inflows dropped to USD 0.35 billion in 2022. Investment gradually recovered to USD 4.4 billion in 2023 and USD 3.5 billion in 2024.

One of the key drivers behind this recovery was the foreign exchange restrictions introduced by the National Bank of Ukraine, including limitations on dividend repatriation. As a result, a significant share of foreign investors' profits remained in Ukraine as reinvested earnings, which are recorded as foreign direct investment under the balance of payments methodology.

The sectoral distribution of investment has also changed considerably. Historically, the financial sector—particularly the banking industry—attracted the largest share of FDI. Since the beginning of the full-scale war, however, manufacturing has experienced a significant decline in investment, while the trade and IT sectors have gained a larger share due to their comparatively lower exposure to wartime risks. Investment in the agricultural sector has remained relatively stable.

According to preliminary data, net FDI inflows amounted to approximately USD 2.6 billion in 2025, representing a decline of around 25.6% compared to 2024. The National Bank estimates that total net FDI under the balance of payments methodology reached approximately USD 2.4 billion, of which around USD 1 billion consisted of reinvested earnings. Differences between reported figures reflect updates to the statistical methodology and revisions made by the National Bank of Ukraine.

Ukraine Receives Nearly USD 600 Million from the World Bank: How Will the Funding Be Used?

Ukraine has received nearly USD 600 million from the International Bank for Reconstruction and Development (IBRD) under the SPIRIT project to finance government social expenditures. The disbursement was announced by Prime Minister Yuliia Svyrydenko.

Of the total amount, USD 300 million was provided with guarantees from the Government of Japan, while USD 298.75 million was backed by bilateral guarantees from the Government of the United Kingdom. The total value of the SPIRIT project amounts to USD 880 million. The funding was disbursed after Ukraine fulfilled all program conditions.

The funds will be used to finance more than 18 state social assistance programs, benefiting over one million people. These include financial support for families with children, children suffering from serious illnesses, orphans, foster families and family-type children's homes, persons with disabilities, large families, as well as program such as Municipal Nanny, childcare support for children under one year of age, and the eYasla childcare initiative.

International financial assistance continues to play a significant role in supporting Ukraine's public finances. In June, revenues to the State Budget's general fund reached UAH 433.9 billion, representing an 85% increase compared to the same period last year. The primary driver of this growth was UAH 214.2 billion in international grant assistance, whereas no grant funding had been received during the corresponding period of the previous year.

European Flagship Fund for the Reconstruction of Ukraine Officially Launched in Gdańsk.

During the Ukraine Recovery Conference 2026 (URC2026) held in Gdańsk, Poland, the official launch of the European Flagship Fund for the Reconstruction of Ukraine was announced. As part of the Ukraine Investment Framework (UIF), the European Commission signed financing agreements with three implementing partners for a total amount of EUR 160 million.

In addition, the governments of Germany, France, Italy, and Poland will each contribute EUR 15 million in first-loss capital through their national development finance institutions. A further EUR 45 million will be invested by a consortium comprising Amber Infrastructure Group and Dragon Capital, which will serve as the Fund's manager. As a result, the Fund will launch with an initial investment capacity of EUR 265 million.

The Fund is expected to raise approximately EUR 500 million in the coming months, with a long-term target of EUR 1 billion in committed capital. Through the use of blended finance and private capital mobilisation mechanisms, the initiative is expected to unlock up to EUR 7 billion in investment for Ukraine's economy.

The Fund's primary objective is to stimulate private investment in strategically important sectors of the Ukrainian economy. Priority areas include the energy sector, transport and logistics infrastructure, key industrial industries, as well as high-growth Ukrainian companies with strong scaling potential.

Over EUR 100 Million in Loans Within a Year: Who Is the European Investment Bank Financing in Ukraine?

Since the start of the full-scale war, the European Investment Bank (EIB) has reshaped its approach to supporting Ukraine's private sector, placing greater emphasis on technology companies, agribusinesses, and small and medium-sized enterprises (SMEs). This was highlighted by Kristina Mikulova, Head of the EIB Regional Hub for Eastern Europe.

According to Ms. Mikulova, 2025 marked a turning point in the EIB's support strategy, as the Bank began actively investing in private equity funds. The first step in this direction was made in 2023 through a EUR 25 million investment in the Horizon Capital Growth Fund IV. Technology and IT companies remain one of the EIB's key investment priorities. Businesses operating in international markets, generating foreign currency revenues, and relying less on physical infrastructure are considered particularly resilient to wartime risks, making the sector increasingly attractive for investment.

At the same time, SMEs continue to be the primary beneficiaries of EIB financing. The Bank has also noted a growing number of women-led businesses seeking financial support, while demand from the agricultural sector remains consistently strong, reflecting its critical role in maintaining Ukraine's economic resilience and export capacity.

Under the EU4Business Guarantee Facility, partner banks provided more than EUR 100 million in new loans to Ukrainian businesses between April 2025 and May 2026. Nevertheless, access to finance remains one of the principal challenges facing Ukrainian SMEs.

Against this backdrop, guarantee instruments implemented by the EIB together with other international financial institutions continue to play a crucial role in expanding access to finance, stimulating private investment, and supporting Ukraine's economy during wartime.