Ukraine Investment Framework: must-knows for businesses

On 21 August, the GB4U and the European Business Association held a meeting with the Ministry of Economy, Environment, and Agriculture of Ukraine dedicated to the Ukraine Facility programme, with a particular focus on its investment component — the Ukraine Investment Framework (UIF).

Maryna Khlystun, Director of the Department for Investment Attraction and Cooperation with IFIs at the Ministry of Economy, Environment and Agriculture of Ukraine, presented the key opportunities of the UIF, one of the main instruments to support private investment and drive Ukraine’s economic recovery. She noted that EU funds are channelled through partner IFIs (such as the EBRD, IFC, and EIB) and European development banks (including BGK, NRB, and KfW), which in turn initiate projects in Ukraine.

Priority sectors of the Ukraine Investment Framework include:

• access to finance for SMEs

• human capital development and social infrastructure

• energy

• transport

• agri-food sector

• critical raw materials

• digital transformation

• green transition and strategic investments

According to preliminary estimates by the European Commission, the UIF will help mobilise up to €40 billion in investments during 2024–2028. The programme provides guarantees to reduce risks for IFIs, bilateral development agencies, and Ukrainian banks when financing public and private sector projects. It also includes grant funding to support blended finance, thereby lowering borrowing costs, as well as technical assistance. At least 15% of UIF funds are allocated to financing public projects at the local level. Partner banks have a maximum of three years to implement investment projects.

Implementation instruments of the UIF

The UIF is being rolled out through three main channels: the OPEN call (support for public and private sector projects), the Banking call (financing via Ukrainian banks with EU guarantees), and the EIB’s “Pocket” instrument. For SMEs, financing through banks brings several advantages, such as lower own contribution and collateral requirements, larger loan amounts, and reduced borrowing costs. To date, 12 international financial institutions have joined the implementation of the UIF.

Among the financing programmes for the private sector currently under preparation are:

• EBRD RES-DE-RISKING – supporting the development of green generation;

• EDFI Ukraine – direct investments into private companies;

• IFC HI Impact Equity – direct investments into private companies;

• NRB and BGK programmes – focusing on mid-sized business projects.

Next steps

The meeting also highlighted the upcoming European Flagship Fund, being developed with the EIB, four development banks, and the support of the European Commission. The fund will focus on renewable energy, infrastructure, digital transformation, industrial modernisation, and critical raw materials, and is expected to launch by the end of 2026.

By the end of 2025, implementation of 18 projects through partner banks is planned.

Following the Ministry’s presentation, business representatives had the opportunity to raise questions about UIF opportunities. The business community also stressed the importance of increased grant support for enterprises in frontline regions, which often lack the capacity to repay loans due to the destruction of production facilities caused by the war.

Global Business for Ukraine and the European Business Association extends its gratitude to Maryna Khlystun, Kateryna Poliakova, Senior Investment Expert at the Reform Support Team, as well as the experts of the Ministry and all participants for a meaningful dialogue. We will continue our joint efforts to create more opportunities for Ukrainian business.