Current news on Rebuild Ukraine topic

Almost 40% of German companies plan to expand their business in Ukraine despite the war.

Almost 40% of German companies intend to expand their activities in Ukraine or enter the Ukrainian market, despite the ongoing war. This is evidenced by the results of the German-Ukrainian Business Outlook 2026 study. According to the study, 38% of the companies surveyed plan to expand their presence in Ukraine or start operations on the Ukrainian market. At the same time, 63% of respondents expect an increase in investments after the end of the war. At the same time, 80% of companies assess the results of their current activities in Ukraine as satisfactory, good or excellent.

Almost half of the respondents — 49% — expect the business climate in Ukraine to improve over the next 12 months. Another 47% of companies plan to increase the number of employees in Ukraine, and 43% — to increase investment volumes over the next year.

Among the main areas of future investment, companies highlight technology and innovation, human capital development, infrastructure and sustainable development projects.

After the end of the war, 23% of German companies plan to significantly increase investment volumes within the first six months. Another 40% of respondents predict a moderate increase in investment.

Respondents named the potential of the domestic market — 54% and the availability of qualified specialists — 50% as key competitive advantages of Ukraine. At the same time, 30% of companies noted a high level of digitalization and developed IT infrastructure.

Among other advantages of Ukraine, business highlights a favorable geographical location and prospects related to the future reconstruction of the country. Each of these factors was named by 28% of the surveyed companies. The study was attended by 102 German companies that already operate in Ukraine or have business ties with the Ukrainian market.

The results of the study demonstrate that, despite the war risks, German business continues to perceive Ukraine as a promising market with significant economic potential, qualified personnel, developed digital infrastructure, and broad long-term opportunities, particularly in the field of post-war reconstruction.

Kyiv concentrates almost 80% of foreign direct investment in Ukraine.

About 78.4% of the net volume of foreign direct investment attracted by Ukraine in the first quarter of 2026 fell to Kyiv. In total, for January-March, the net inflow of FDI into Ukraine amounted to $707 million. At the same time, investment activity remains uneven both in terms of individual industries and between regions.

The largest volume of foreign capital in the first quarter was attracted by the energy industry. In particular, $193 million of net direct investment was received in the electricity and gas supply sector.

Significant volumes of capital were also directed to the trade sector, financial and insurance activities, professional, scientific and technical services, as well as the IT sector.

Among the regions, Kyiv became the undisputed leader in terms of the volume of attracted investments — $554.5 million in three months. The top five regions with the largest FDI inflows also included Lviv, Poltava, Kyiv and Odesa regions.

At the same time, according to the results of the quarter, individual industries and regions demonstrated a net capital outflow.

The largest reduction in investments was recorded in the processing industry - the net outflow amounted to $109.2 million. In agriculture, forestry and fisheries, this indicator amounted to $52.5 million. Among the regions, the largest net capital outflow was recorded in Dnipropetrovsk region - $135.5 million.

Negative indicators were also recorded in Zaporizhzhia, Ivano-Frankivsk, Vinnytsia and Rivne regions. At the same time, the presence of a net outflow does not mean that investors have completely stopped operating in the relevant industry or region.

Such an indicator means that during the reporting period, the volume of capital outflow, repayment of liabilities and other operations that reduce the volume of investments exceeded the volume of new inflows.

Overall, the data indicates continued interest from foreign businesses in the Ukrainian market, while demonstrating a high concentration of investments in Kyiv and key sectors of the economy — energy, finance, trade, and technology.

Foreign investors are returning to Ukraine: the number and volume of M&A deals are growing.

In the first half of 2026, foreign business significantly increased its activity in acquiring Ukrainian companies and assets. According to the data, the number of M&A deals involving foreign buyers doubled during the year — from 5 transactions in the first half of 2025 to 10 deals in the same period of 2026.

The total disclosed value of Ukrainian assets acquired by foreign investors increased from $26 million in the first half of 2025 to $415 million in the first six months of 2026.

The greatest activity of foreign capital is observed in two key areas — IT and technology, as well as in the banking and insurance sectors.

One of the most notable deals was the deal with Preply, a Ukrainian-based educational platform that raised $150 million in a Series D round. As a result, the company’s valuation exceeded $1 billion, giving it unicorn status.

Other notable transactions included the acquisition of MetLife Ukraine, the largest life insurance company in Ukraine, by Polish insurance group PZU S.A. for approximately $100 million. In addition, Kapenata Limited acquired Ukrainian agro-holding Agro-Region Group for over $100 million.

While foreign investors continue to consider security risks as one of the key factors, the growth in the number and total value of M&A deals indicates a gradual revival of international business interest in Ukrainian assets.

The overall dynamics indicate a selective return of foreign capital to the Ukrainian market, primarily to sectors with high development potential, sustainable business models, and the ability to integrate into regional and global value chains.

Investor demand in the secondary government bond market is focused on a few issues.

Last week, deals were concluded on the secondary market with 48 issues of domestic government bonds (OVDPs). The total trading volume was ₴16.8 billion, the investment company ICU reported.

At the same time, more than half of the total volume of transactions was provided by only six government bond issues. The total value of transactions with these bonds reached ₴9.8 billion, which is about 58% of the total volume of the secondary market.

Investors showed the greatest interest in short-term bonds. Government bonds with a maturity of less than 12 months accounted for 48% of all concluded deals.

Another 21% of trades fell on bonds with a maturity of one to two years, while more than 31% of transactions concerned securities with a longer circulation period.

The highest trading activity was recorded for one-year OVDPs maturing in early July 2027. The volume of transactions with this issue amounted to ₴3 billion, or 18% of the total trading volume.

Almost half as many deals were concluded with three-year OVDPs, the maturity of which is scheduled for April 2029. The volume of transactions with them amounted to ₴1.8 billion, or 11% of the entire market.

At the same time, bonds maturing in April 2028 and April 2029 collectively provided 18% of all transactions with OVDPs last week. The Ministry of Finance also regularly offers these issues to investors within the framework of primary auctions.

During the last placements, the demand for these securities exceeded the volume of offered bonds several times.

According to ICU analysts, the main activity in the secondary market is in short-term government bonds, which are currently unavailable for purchase at the Ministry of Finance's primary auctions. At the same time, investors remain interested in long-term instruments that allow them to fix the current level of profitability for a longer period.

The European Union will allocate €1.08 billion to rebuild Ukrainian communities.

The European Union has announced the launch of new support programs for Ukrainian communities totaling €1.08 billion. The funds are planned to be used for the implementation of municipal projects, in particular, the modernization of heating and water supply systems, increasing energy efficiency, developing waste management systems and building social housing.

Financing will be provided through international financial institutions, including the European Investment Bank, the French agency AFD, the Polish BGK and the Nordic Finance Corporation NEFCO.

Ukrainian state-owned banks - Oschadbank, Ukreximbank and Ukrgasbank - will also join the implementation of the new programs. The programs will be implemented within the framework of the UIF - the main EU investment mechanism aimed at supporting the recovery and development of Ukraine.

At the same time, the state program "eReconstruction", which provides for compensation to citizens for housing damaged or destroyed as a result of Russian aggression, has already covered 231,681 families in almost three years of operation. The total amount of compensation paid exceeded ₴119 billion. The largest part of the funding was directed to the purchase of new housing to replace the destroyed one.

Since the beginning of the full-scale invasion of the Russian Federation, Kyiv has allocated more than ₴2.33 billion from the city budget to restore residential buildings damaged as a result of Russian attacks. In 2026, the capital has allocated more than ₴574 million for the restoration of the housing stock.

As of July 1, work has already been completed in 31 apartment buildings in Kyiv, while dozens more objects are at various stages of reconstruction.

In the Kyiv region, within the framework of the "Reconstruction of Ukraine" direction, the restoration of all 18 apartment buildings has been completed, the reconstruction of which was carried out with joint funding from the state and the fundraising platform UNITED24. Thanks to this, more than 4,000 residents were able to return to their homes.

The total cost of the project exceeded ₴860 million, of which more than ₴735 million were contributions from donors from 110 countries of the world, attracted through UNITED24.

The rest of the funding was provided by the Fund for the Elimination of the Consequences of Armed Aggression and local budgets. Kyiv region remains one of the key regions of reconstruction: out of more than 30,000 damaged or destroyed objects, about 24,000 have already been restored.

In addition, almost 1,700 out of more than 2,100 apartment buildings damaged as a result of the war have been restored in the region.

Ukraine strengthens cooperation with international financial institutions to transform the public sector and attract private capital

Ukraine has agreed with the World Bank and EBRD to deepen cooperation in the field of public sector reform and attracting private investment.

During URC2026, the Ministry of Economy of Ukraine, the World Bank Group and the European Bank for Reconstruction and Development (EBRD) signed a memorandum of cooperation on the transformation of state-owned enterprises and attracting strategic investors.

The partnership is in line with the goals of the State Property Policy of Ukraine, international principles of corporate governance and best global practices in reforming state assets.

The main goal of the cooperation is to help Ukraine transition to a model in which state-owned enterprises will not only operate more efficiently, but will also have the opportunity to attract private capital to modernize, develop and increase the value of assets.

“Partnership with the World Bank and the EBRD will allow us to accelerate reforms, strengthen investor confidence, and ensure proper preparation of investment projects that will contribute to Ukraine’s economic recovery,” said the Minister of Economy Oleksiy Sobolev.

Within the framework of the memorandum, the parties plan to cooperate in a number of areas: reforming and commercializing state-owned enterprises, strengthening corporate governance, financial and operational restructuring, preparing enterprises for due diligence, developing mechanisms for attracting private financing and capital markets, assessing the effectiveness of reforms, and coordinating international assistance in the field of public sector reform.

It is expected that the implementation of these measures will contribute to Ukraine’s long-term economic growth, increasing the efficiency of state assets, and strengthening the country’s investment attractiveness.