EU urges businesses to invest in Ukraine’s reconstruction

At the first EU-Ukraine Investment Conference held in Warsaw, the European Union announced the launch of a Call for Expressions of Interest to attract private investments from the EU in the reconstruction of Ukraine. The event, organized by the EU in cooperation with the Government of Ukraine, is designed to stimulate European businesses to participate in critical areas of the war-affected Ukrainian economy.

Rubryka writes about this, referring to the Representation of the European Union in Ukraine.

As reported, within the framework of the Call, companies from EU countries, including joint ventures with Ukrainian partners, are invited to submit their investment proposals by March 1, 2025.

The submitted proposals will be carefully considered and aligned with investment projects financed by the Ukraine Investment Framework (UIF) — an integral part of the support mechanism for Ukraine, with a budget of €50 billion. This mechanism supports the integration of Ukrainian business into the EU single market and promotes the involvement of private capital in the recovery process.

"Ukraine's reconstruction requires both public funding and partnerships with the private sector. By bringing these efforts together, we can maximise investment, support the country's recovery and gradual integration into the EU Single Market. Indeed, fostering the private sector involvement in Ukraine's recovery and reconstruction processes will be key to its success," emphasized Olivér Várhelyi, European Commissioner for Neighborhood and Enlargement.

The call for expressions of interest is based on the Ukraine Plan, as well as on the Strategic Guidelines of the Ukraine Investment Framework (UIF), which define the main directions for attracting foreign direct investment. Priority areas include:

1. Energy: Developing sustainable energy solutions, including renewable energy projects and modernisation of existing energy infrastructure.
2. Critical Raw Materials: Investing in processing key minerals and resources needed for high-tech industries and renewable energy technologies.
3. Processing industry and manufacturing: Revitalising and modernising the manufacturing sector to boost industrial competitiveness.
4. Construction materials: Support reconstruction from housing to public buildings, including by investing in the construction material industry, construction companies and construction supervisors.
5. Information technology and digital transformation: Strengthening the digital infrastructure and technology to foster innovation and growth across sectors. 
6. Transport and export logistics: Rebuilding and modernising transport, logistics, and public infrastructure to support connectivity.

"The launch of the EU's Call for Expression of Interest is an important step toward attracting investments for Ukraine's reconstruction. We are dedicated to fostering a favorable environment for foreign investment. EU-Ukraine Investment Conference allows us to remind international businesses that war is not an embargo on investment; we must unite our efforts around Ukraine's recovery now, without waiting for the war to end," stressed the First Deputy Prime Minister of Ukraine, Yuliia Svyrydenko.

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The first EU-Ukraine investment conference, organized on November 13 and 14 as part of the 4th ReBuild Ukraine International Exhibition, marks a significant step in attracting private investment to Ukraine.

The conference brought together more than 5,000 participants, including companies, banks, and investors from Ukraine, the EU, and other countries, with the goal of promoting the attraction of private investment for the recovery, reconstruction, and modernization of Ukraine.

Over the two days, discussions focused on the initial results of the Ukraine Investment Framework (UIF), the EU program supporting Ukraine's recovery and reconstruction on its path to EU integration, as well as the key role of attracting private investment. Special emphasis was placed on the importance of public-private partnerships in implementing municipal restoration measures.

Since the beginning of Russia's war of aggression against Ukraine, the EU and its member states have provided nearly €122 billion in financial, humanitarian, and military aid to Ukraine and to support Ukrainians in the EU.

This includes €15.6 billion raised under the Ukraine Facility, part of a broader EUR 50 billion in grants and loans planned for the period 2024-2027.