The perceived risks are significantly higher than those that actually materialise — that’s clear after three years of offering wartime loans and export insurance for Ukraine by Polish state banks and agencies. The challenge now is how to mobilising more private investment for bigger and longer term projects.
“For foreign direct investment to grow, both institutional solutions and the readiness of international and private partners to see real opportunities in the Ukrainian market are required.”
Borys Lobovik, partner at EY in Ukraine, noted that despite the war, Ukraine’s investment infrastructure continues to function, and the regulatory environment generally allows for successful capital raising.
“Dialogue with business and further liberalization, particularly of currency regulation, are important for creating comfortable conditions for investors. All these steps should contribute to the formation of an environment where private investors feel confident and protected.”
The participants noted that the primary deterrent for new private investors remains the issue of security, linked to military and political risks, which leads to cautious decision-making.
To overcome these risks, existing and new insurance mechanisms developed by international financial institutions such as the World Bank, International Finance Corporation, and the EBRD, as well as export-credit agencies from other countries, were actively discussed. Their participation also serves as a signal to private capital, underscoring the viability of large-scale projects, particularly public-private partnerships.
This is supported by the successful experience of the Polish Export Credit Agency (KUKE) in Ukraine, whose project portfolio exceeds 2 billion euros.
Despite the war, Ukraine’s investment infrastructure continues to function, and the regulatory framework allows for successful capital attraction. For instance, Horizon Capital has not stopped investing in Ukraine for a single day since the full-scale invasion began and continues to successfully raise funds for a new fund to invest in existing companies, helping them to grow. The company also provides support to large foreign investors who require expertise in the Ukrainian market and is exploring opportunities to invest in new projects in alternative energy, construction, and mineral extraction.
Representatives from the European Union noted that within the framework of the four-year, 50-billion-euro macro-financial assistance program for Ukraine, a separate component is dedicated to supporting private sector investments through the Ukraine Investment Framework (Pillar II).
