Ukraine’s Reconstruction: Key Insights for Global Investors

On July 9, the European Business Association, in partnership with Global Business for Ukraine and EY, hosted a discussion «Ukraine’s Reconstruction: Key Insights for Global Investors» on the eve of the Ukraine Recovery Conference in Rome. The event gathered Ukrainian business leaders and officials, international investors, and partners to explore the current business climate, resilience of Ukrainian companies, and the steps needed to boost investor confidence.

Marco Daviddi, Managing Partner, EY-Parthenon Italy and Chairman and Technical Director, EY Engineering and Technical Services Italy, noted that while there is certain interest from Italian companies in investment opportunities in Ukraine – particularly in the construction and energy sectors – they lack sufficient information about the country’s actual business environment. «The news we see in the newspapers is all about destruction and conflict. But we want to know more about the business situation in Ukraine», he stressed. Investors, he emphasized, are in a waiting mode, and more confidence is needed, which can be fostered through transparent communication about Ukraine’s economic situation and ongoing reforms.

Tiberiu Dima, Managing Director, BASF in Ukraine, underlined the importance of people as the foundation of any business. While the initial focus during the early stages of the war was on the safety of employees, protection of assets, and business continuity, companies are now dealing with a significant labour shortage. However, the situation varies by sector and in agriculture it is more stable. He noted that retaining people goes beyond financial incentives and increasingly depends on soft factors such as setting realistic expectations during wartime. BASF introduced a more flexible work schedule in Ukraine, giving employees freedom of choice without any drop in productivity. The company also implemented mental health support programs to help detect early signs of stress. Looking ahead, he pointed out the challenge of bringing people back to Ukraine once the war is over: «It will not happen naturally – we need to work on this issue». In addition, Tiberiu mentioned the need to invite more decision-makers to Ukraine, allowing them to experience local realities and become more inspired to invest in the country – as Ukraine is ready for new investments.

Lisa Kaestner, Country Manager for Ukraine, International Finance Corporation, commenting on the situation with access to financing, explained that the issue is less about access and more about investor appetite. Since the full-scale invasion, IFC has delivered $2.4 billion to support Ukraine's private sector. In her opinion, the level of interest in Ukraine has not decreased – many global investors are interested but remain hesitant. Lisa Kaestner emphasized that Ukraine’s progress with reforms, such as the recently adopted PPP law, could help change perceptions and attract more investment. She also praised the exceptional energy, high dynamism, and adaptability of Ukrainian businesses.

Andrii Zdesenko, Founder and CEO, Biosphere Corporation, has shared how Ukrainian companies continue to operate under tough pressure, taking responsibility for both profit and long-term strategy. «It is our decision, our risk. But we are not waiting», he said. Andrii Zdesenko advised potential investors to start laying the groundwork now – identifying local partners, studying the market, and preparing projects – so they are ready to enter the market as soon as conditions allow. He also acknowledged the market had shrinked fue to war-related migration but said his company had expanded into the EU to compensate. «All our production capacity is fully booked. We deliver to the European market. The main question now is how to secure production». He added that while Ukrainian producers are all operating under challenging conditions, they remain competitive.

Tetiana Lukyniuk, Country Director, Google in Ukraine, highlighted the role of the IT and tech sector, which she called one of the most resilient parts of Ukraine’s economy. The sector now represents 5% of GDP. Google in Ukraine supports early-stage startups – many of which focus on AI and cybersecurity solutions. Several have already secured additional funding from international venture funds. «We support them not only because they are Ukrainian, but because their ideas are great», she commented. Tetiana Lukyniuk also noted the high level of digital transformation in Ukraine, mentioning that people can now even get married online.

Mustafa Nayyem, Former Head of the State Agency for Restoration and Infrastructure Development of Ukraine, mentioned that rising insurance costs and an unfriendly regulatory environment remain key obstacles for investors. However, he emphasized that Ukraine is open to lobbying efforts of foreign businesses. He also encouraged international stakeholders to begin preparing for investment now – doing the necessary groundwork, building relationships, and identifying opportunities.

Oleksandr Kamyshin, Strategic Advisor to the President of Ukraine, pointed out that the country cannot raise capital without doing its «homework». However, it is not just the job of the state or private sector – it is everyone’s responsibility. He also suggested that business tourism could be a powerful tool for engagement. «Those who come to Ukraine are inspired by its resilience. Risk and war come hand in hand – but big risks come with big rewards».

Bogdan Yarmolenko, EY Ukraine Country Managing Partner, Strategy and Transactions Leader, concluded the event by noting that while there are many different views, the direction is clear: Ukraine is moving forward. «There is a lot of homework to do, but we are doing it – step by step. My firm recommendation to global investors is to capitalize on the first-mover advantage; now is the critical moment to identify and evaluate opportunities».

We are thankful to EY for hosting the event and all speakers and guests for their insights and continued support for Ukraine’s economic resilience and recovery.