Current news on Rebuild Ukraine topic

Government Approves Roadmap for Implementing ESG Standards in Financial and Investment Activities

The Government of Ukraine has approved a roadmap for introducing environmental, social and governance (ESG) standards into financial and investment activities to attract sustainable financing for reconstruction and economic development.

Approved on 30 September, the roadmap covers the period from 2026 to 2028 and provides for the gradual alignment of Ukraine’s sustainable finance framework with European approaches as part of the country’s preparations for EU accession.

One of the key priorities will be the development of a taxonomy — a system for classifying economic activities according to sustainability criteria. The document also provides for the introduction of corporate sustainability due diligence, the integration of ESG principles into the public investment management system, and the monitoring of the volume and allocation of sustainable financing.

The Government also plans to develop financial instruments to improve businesses’ access to capital markets. According to the Ministry of Economy, establishing clear and consistent rules will encourage companies, investors and public institutions to apply European sustainable finance standards.

The roadmap establishes a foundation for further regulatory and institutional changes. However, its approval does not, in itself, guarantee that financing will be secured, nor does it mean that all the envisaged requirements will automatically enter into force.

For investors, the introduction of common criteria and a reliable monitoring framework may facilitate the assessment and financing of Ukrainian reconstruction projects. The practical impact, however, will depend on the implementation of the planned measures and companies’ ability to demonstrate compliance with the new standards.

Norway to Add €350 Million to Investment Fund Supporting Ukrainian Businesses

Norway plans to allocate an additional €350 million for investment in Ukraine’s private sector through Norfund between 2027 and 2030. As a result, the total amount of funding already allocated and planned for the Investment Fund for Ukraine is expected to increase to approximately €443 million.

Norfund, Norway’s state-owned development finance institution, provides commercial loans and makes equity investments ranging from €5 million to €50 million per transaction. The new funding will supplement the €93 million already allocated to the fund, according to Norfund’s announcement dated 2 October.

The plan envisages allocating approximately €70 million in 2027, followed by €93 million annually from 2028 to 2030.

Norfund is interested in profitable Ukrainian companies with strong management teams and further growth potential. Its priority areas include renewable energy projects that are ready for construction, manufacturing and agricultural businesses planning to expand their production capacity, and banks seeking to increase lending. The fund invests in minority stakes, allowing existing owners to retain control of their businesses.

Norfund has managed the Investment Fund for Ukraine since its establishment in 2024. The fund aims to support reconstruction, private sector development and job creation. Its initial investments include the expansion of the M10 industrial park in Lviv.

The multi-year funding programme provides Ukrainian businesses with greater certainty regarding access to capital amid wartime risks. For companies planning to expand, Norfund’s minority investment model also offers an opportunity to attract an institutional partner without relinquishing control of the business.

Ukraine Proposes Capital Markets Infrastructure Holding with a Foreign Strategic Investor

Ukraine is considering legislative amendments aimed at attracting a foreign strategic investor to its capital markets infrastructure and strengthening the role of the National Bank of Ukraine (NBU) by transferring control over the Central Securities Depository to the NBU.

Government Draft Law No. 16038 and an alternative legislative proposal provide that the NBU must hold at least 50% plus one share in the Central Securities Depository. At the same time, the proposals envisage the establishment of a separate infrastructure holding company consolidating exchange, clearing and settlement functions. The shares of the Settlement Centre and at least 25% of the shares in the Central Securities Depository are expected to be transferred to the holding company.

Under the government’s proposed model, the state would hold a 25% stake in the holding company, while a foreign strategic investor and an international financial institution would jointly control the remaining stake.

The government draft law provides for the establishment of only one infrastructure holding company of this type in Ukraine. The Cabinet of Ministers of Ukraine would determine the key parameters of the competitive selection process, with the winner selected taking into account the proposed contribution amount. The competition may proceed even if only one applicant participates.

The alternative draft law proposes establishing the ownership structure directly by law: 60% collectively for the foreign investor and the international financial institution, 25% plus one share for the state, and 15% minus one share for Ukrainian professional market participants and banks.

The proposals also envisage regulating the ownership structure of the Central Securities Depository. At the NBU’s request, existing shareholders holding more than 5% of its shares would be required to dispose of the portion exceeding the statutory threshold within three months.

The proposed restructuring could create the conditions for attracting international capital, expertise and modern governance practices to Ukraine’s securities market infrastructure. However, the effectiveness of the model will largely depend on the transparency of the strategic investor selection process, a clear division of responsibilities among the holding company’s participants, sound corporate governance and effective mechanisms for protecting existing shareholders’ rights.

EIB Ready to Mobilise Up to €1 Billion for Ukraine’s Infrastructure Development

The European Investment Bank (EIB) is working on the establishment of flagship funds expected to mobilise up to €1 billion (approximately $1.11 billion) to finance Ukraine’s transport, digital and energy infrastructure. This was announced by Kristina Mikulova, Head of the EIB Regional Representation for Eastern Europe, during the Economic Resilience Forum. In addition, the Bank is developing dedicated support mechanisms for large Ukrainian companies that have recently been significantly affected by Russian aggression.

“For large companies, we have secured €230 million (approximately $256 million) in guarantees from the European Commission. A €20 million (approximately $22.3 million) grant package and EIB financing are also envisaged, potentially enabling up to €800 million (approximately $891 million) to be mobilised for these companies,” Mikulova noted. According to her, the EIB is also cooperating with Ukrainian banks through portfolio risk-sharing guarantee mechanisms, with the aim of mobilising a further €500 million (approximately $557 million) in lending for small and medium-sized enterprises by the end of 2026.

The EIB is also developing equity financing instruments to support Ukraine’s recovery. The Bank has invested €50 million (approximately $55.7 million) in the Amber Dragon Ukraine Infrastructure Fund, Ukraine’s first infrastructure private equity fund, which has raised approximately €200 million (around $222.9 million) from anchor investors, including the EIB, the European Bank for Reconstruction and Development (EBRD), and the International Finance Corporation (IFC).

Separately, the EIB, together with French partners, including Bpifrance, is acting as an anchor investor in the Ukraine Phoenix Tech Fund, a venture capital fund focused on financing startups. The fund is expected to announce its first investments in companies in the near future.

Since the beginning of Russia’s full-scale invasion in 2022, the EIB has provided Ukraine with €4.5 billion (approximately $5 billion) in financing.