Newsletter March 2024

Dear all,

We’re excited to announce the launch of the official Business Sweden Ukraine webpage, now available at This platform will serve as the primary source for insights into our efforts to expand Sweden’s business presence in Ukraine. Explore recent business news, analytical materials, upcoming events, and procurement opportunities open to Swedish companies.

We’re also glad to announce the successful conclusion of the "Opportunities in Ukraine’s Municipal Sector" webinar on February 22. Organized in collaboration with Swedfund, the webinar attracted over 30 participants, including Swedish companies, Ukrainian government agencies, and more. If you’re interested in accessing a dedicated folder containing the webinar recordings and presentation materials, please let us know.

Additionally, in February and March, Business Sweden Ukraine continued its engagements with key government actors, including the Ministry of Health and Naftogaz (national oil and gas company), to strengthen contacts and advance ongoing Swedish company engagements or proactively plan for future needs.

Looking ahead, we’re excited to announce our upcoming webinar series, "Rebuilding Ukraine: Opportunities for the Swedish Private Sector," in April 2024. This series aims to provide Swedish companies with current information on Ukraine’s economic situation and prospects, ongoing procurement opportunities, investment frameworks, and practical aspects of conducting business with Ukraine in these challenging times. Stay tuned for more details at

Half way through March, we would like to highlight important business and investment updates in Ukraine:

Ukrainian Government:

  • The Government of Ukraine, along with the World Bank Group, the European Commission, and the United Nations, has published an updated joint assessment of damage and needs resulting from the Russian invasion (RDNA3), estimating Ukraine’s recovery needs at USD 486 billion over the next decade. This figure is about 2.8 times Ukraine’s nominal GDP for 2023 and 18% higher than the previous RDNA2 estimate. The report covers damage from the invasion between February 24, 2022, and December 31, 2023, with direct losses reaching almost USD 152 billion, particularly affecting sectors like housing, transport, trade and industry, energy, and agriculture.

  • The blockade by Polish farmers continued at five checkpoints along the Polish-Ukrainian border, leading to ongoing disruptions in cargo traffic. According to the State Border Guard Service of Ukraine, as of March 9, approximately 1,700 trucks were queued at these checkpoints. The longest queue was reported at the Yahodyn checkpoint. Despite the blockade, buses and cars were able to pass through the checkpoints without hindrance.

  • During the Government session on March 5, Ukraine allocated an additional UAH 9.3 billion (approximately SEK 2.5 billion) for the rapid recovery program. The funds will support the repair of residential buildings, schools, hospitals, and critical infrastructure facilities in 13 regions, aiming to create conditions for Ukrainians to return from abroad and continue European reforms.

  • Ukraine’s IT industry, a key economic driver, continues to thrive despite the war. Diia.City, a major tech hub, now houses 800+ residents and supports innovation. The government is enhancing the hub’s accessibility and fostering partnerships with global firms. Diia.City is expanding its focus to include defense technology, bionic prostheses, and electric vehicles, aligning with Ukraine’s innovation priorities.

  • The Cabinet of Ministers of Ukraine has approved the Plan for the Ukraine Facility program, a pivotal step for accessing EU financial assistance totaling EUR 50 bln from 2024 to 2027. The plan, comprising over 150 indicators in 69 reform areas, is designed to bolster the country’s economy and business climate. This approval sets the stage for the implementation of reforms aimed at enhancing public finances, fighting corruption, and advancing key industries. Funding under the program will be based on the Plan’s indicators, with the last payment expected in 2028. The Plan’s approval marks a crucial step in Ukraine’s path toward economic development and integration with the European Union.

International Cooperation:

  • The Ministry of Economy of Ukraine and the World Bank are working to mobilize USD 500 million to finance projects supporting Ukrainian businesses in 2024. This funding aims to increase the effectiveness of programs under the "Made In Ukraine" brand, focusing on priority industries that generate additional GDP, including the processing industry and export-oriented businesses.

  • Ukraine received a USD 760 million grant from Japan and Norway through the World Bank’s PEACE project. This funding will be used to partially compensate for non-security and defense-related expenditures, including old-age social payments, payments to employees of the State Emergency Service, and teacher salaries. Ukraine has already received about USD 1.2 billion of external financial assistance from donors through World Bank projects in 2024, with over 75% of this amount in the form of grants.

  • Japan will allocate EUR 1.25 billion to support Japanese investors in Ukraine, with new programs from the Japanese export credit agency NEXI. Japan intends to allocate USD 4.5 billion in financial assistance this year to Ukraine.

  • The Ministry of Energy of Ukraine, in partnership with Denmark, has developed a Catalog of critical technologies for Ukraine’s energy sector. This catalog lists solutions for distributed generation and electricity supply security, aiming to stabilize and improve Ukraine’s energy system. It marks 10 years of partnership and will be regularly updated to reflect Ukraine’s evolving energy needs.

  • The IMF’s Ukraine Capacity Development Fund (UCDF) launched with a USD 65 million budget, supported by countries such as Japan and the Netherlands. It aims to strengthen Ukraine’s capacity for economic and financial reforms, focusing on fiscal policy, monetary policy, integrity, and anti-corruption measures. The fund underscores international support for Ukraine’s post-war reconstruction and EU integration.

  • Ukraine has secured a substantial 5-year credit line at 0% interest for its recovery and integration efforts, including a USD 1.5 billion loan from the International Bank for Reconstruction and Development and a CAD 2 billion loan from Canada. The country has also implemented various insurance programs to protect investment projects and reduce insurance rates.

  • Ukraine has secured EUR 4.5 bln in transitional financing from the European Union as part of the Ukraine Facility program. The funds, received in March 2024, aim to bolster Ukraine’s economy and ensure macroeconomic stability. This financial support is part of a larger EUR 50 bln package for 2024-2027, with Ukraine expected to receive additional tranches in the coming months. The program’s implementation follows the approval of its regulations by the European Parliament in February 2024.

Sweden in Ukraine

  • Sweden, alongside the Republic of Korea, the Netherlands, and Norway, joined the Donor Coordination Platform for Ukraine, pledging over USD 5.5 billion to support Ukraine’s economic recovery. This collective commitment demonstrates the international community’s solidarity with Ukraine in its efforts to rebuild and stabilize its economy after the conflict.

  • On February 20, Sweden announced its largest military support package to date for Ukraine, totaling SEK 7.1 billion. The package includes a maritime initiative, artillery ammunition, anti-aircraft systems, and financial aid, bringing Sweden’s total military assistance to Ukraine since the invasion to SEK 30 billion.

  • On February 29, the Government of Sweden adopted a regulation enabling exporting companies to apply for special export credit guarantees with the Export Credit Board (EKN) for exports to Ukraine that support the country’s development and welfare. This move aims to facilitate Swedish investments in Ukraine, with Minister for Aid and Foreign Trade Johan Forssell highlighting the importance of these guarantees in promoting trade and business promotion. In addition to the export credit guarantees, the government announced the opening of a new trade secretary’s office in Kiev and the appointment of a new trade secretary in Ukraine. This was a final step in formalizing re-opening of Business Sweden’s presence in Ukraine.

  • During her visit to Ukraine on March 25th, Swedish Deputy Prime Minister and Minister of Energy, Business, and Industry, Ebba Busch, met with Ukrainian officials to discuss increasing Swedish business presence in Ukraine. The meeting, attended by Ukrainian Minister of Economy, Yulia Svyrydenko, focused on cooperation in high-tech sectors like energy, telecommunications, and cyber security. Discussions also included support for Ukraine’s energy sector amid challenges and initiatives to reduce the gender pay gap. Additionally, Deputy Prime Minister Busch discussed nuclear energy cooperation with Ukrainian Minister of Energy, German Galushchenko, highlighting Sweden’s interest in collaboration in this area. Deputy Prime Minister’s visit underscores the growing interest in bilateral business collaboration between Sweden and Ukraine.

We look forward to sharing more insights in the coming months. If you have any questions or contributions, please feel free to reach out. Your active involvement is key to our collective success.

Best Regards,

Andreas Giallourakis and Yevhenii Shakotko