Dear Partners,

As 2025 is now in full swing, we are pleased to present the latest edition of our monthly Business Sweden Ukraine Newsletter, designed to keep you informed about significant business developments in Ukraine. It is a privilege to extend our support to your companies as they contribute to the reconstruction efforts in Ukraine. Please do not hesitate to reach out to us with any inquiries or clarifications; we are here to assist you.

Key Highlights

• The Munich Security Conference and Ukraine: From February 14-16, 2025, global attention was focused on Ukraine, with high anticipation surrounding the meeting between the Kyiv and Washington delegations. Talks between Ukrainian President Volodymyr Zelenskiy and U.S. Vice President JD Vance concluded in Munich on February 14, 2025, without an announcement regarding a critical minerals deal - an agreement central to Kyiv’s efforts to secure the support of President Donald Trump. The specific points of contention remain unclear, but Ukraine continues to push for strong security guarantees from both Europe and the United States to safeguard against future threats from Russia, particularly in the event of a peace agreement.

• The Swedish Government has presented Strategy for Sweden’s reconstruction and reform cooperation with Ukraine 2023 - 2027. This strategy, comprising total SEK 9 bln, is part of Sweden’s overall development cooperation and foreign policy and will contribute to Ukraine’s reconstruction and reform efforts between 13 July 2023 and 31 December 2027. We are encouraging you familiarize with the Strategy at the following link.

We also encourage you to participate in the webinar “How to Understand Ukrainians: A Cross-Cultural Perspective” to be hosted by Swecare on March 06, 2025. This engaging and thought-provoking webinar will be featured by Maryna Starodubska, author of the book “How to Understand Ukrainians: A Cross-Cultural Perspective”. The webinar is dedicated to deepen understanding on similarities and differences in business culture between Ukraine and Sweden. Interested participants are invited to register their interest at link or contact. For more information, please contact: For more information: kateryna.pavelko@swecare.se or ana.flanagn@swecare.se.

Tender Opportunities

We continue to encourage you to visit our Tender Opportunities page on our website, where we regularly update information on both international and local tenders relevant to Swedish companies. Stay informed and discover how your company can contribute to Ukraine’s reconstruction efforts by participating in current opportunities.

Currently, Nefco is conducting tenders for the following projects in Ukraine:

• Nearly zero energy renovations of school buildings in Kyiv and Lviv regions.

• Demolition of Destroyed Buildings and Management of Construction Demolition Waste (CDW) in Kyiv Region.

• Energy Efficiency in Municipal Buildings and Street Lighting in the city of Rivne.

• Upgrade of district heating system in Vinnytsia.

• Capital repairs of individual heating substations and heating systems in public buildings of Kyiv.

• Reconstruction of the street lighting networks of the Dniprovskiy district of the city of Zaporizhzhia.

• Repair and Reconstruction of Damaged Critical Infrastructure.

In addition:

• EIB is conducting tender for procurement of new low-floor buses 12 meters length in Lviv; and

• FAO is conducting tender for construction of a modular building for Doublet Center of Plant Genetic Resources in Lviv region.

Key Updates

As we have approached the middle of February, we would like to highlight important business and investment updates in Ukraine:

1. Ukrainian government

• The Ukrainian Ministry of Defense has launched licensed production of modern FPV drones at a state-owned enterprise as part of a pilot project coordinated by its Main Directorate of Defense Innovations. Under a trilateral agreement with a private developer granting a production license, the drones will be supplied to the Defense Forces, with plans for the enterprise to bid independently in future tenders once the production technology is refined and scaled.

• The Ukrainian government has approved the Strategy for Digital Innovation Development in Ukraine (WINWIN) until 2030, covering 14 key sectors for innovation advancement. The strategy underscores the crucial role of these technologies in defense, logistics, and agriculture - paving the way for post-war recovery and positioning Ukraine as a potential global leader in autonomous transport. The strategy envisions creating new opportunities for post-war reconstruction, including autonomous tractors and demining drones for agricultural land, the development of autonomous trucks and vessels for transportation and logistics, and the use of unmanned technology for rapid infrastructure restoration.

• The Strategic Investment Council in Ukraine has approved key reconstruction priorities that are shaping this year's government investment plan. These priorities focus on rebuilding social services (housing, education, and healthcare facilities including shelters in schools and hospitals), upgrading critical infrastructure (energy, transportation, and water systems), and strengthening cross-sector initiatives such as demining, emergency response, and civil protection through projects like "large shelters" modeled on the Finnish approach.

2. International Cooperation

• Ukraine and EIB signed agreements for EUR 116 mln. EIB will finance energy restoration and social projects. EUR 16.5 mln is provided for the rehabilitation of critical infrastructure and introduction of energy efficiency. EUR 100 mln are expected to be provided for the restoration of water, heat supply and sewage facilities, modernization of basic social services in the areas of education, healthcare and the housing sector. Since the start of the full-scale war, EIB has mobilized over EUR 2 billion in support of Ukraine.

• Ukraine and Czech Republic will jointly produce rifles within the framework of the “Danish model” (framework of public-private partnerships, emphasizing collaboration between the government, private sector, and civil society). Some of these weapons are already manufactured in Czech Republic, and for others, negotiating the localization of production in Ukraine is being negotiated.

• The Ukrainian defense industry attracted USD 1.5 bln in 2024, of which EUR 500 mln were attracted via “Danish model.” Nine countries joined the project, including Denmark, Canada, the Netherlands, Lithuania, the United Kingdom, Sweden, Norway, Iceland, the United States, and the European Union. The states financed the initiative both from their own budgets and from frozen Russian assets.

• Finland to send more defence materiel to Ukraine. Finland will deliver its 27th material assistance package to Ukraine with an estimated cost EUR 198 mln. Finland has now delivered defence materiel to Ukraine to a total value of EUR 2.5 billion. 

3. Sweden in Ukraine

• The Swedish Government presented its largest military support package to Ukraine to date, valued at SEK 13.5 bln. The package is divided into eight components, the largest of which consists of various procurements of new materiel - primarily from the Swedish and other European defence industries - for the purpose of donation to Ukraine. 

• The Swedish Government has amended the conditions and expanded the framework for special export credit guarantees for doing business with Ukraine. The aim is to enable more businesses to export to Ukraine and thus contribute to the country’s sustainable reconstruction. The Government has also expanded the existing framework of SEK 333 mln to SEK 555 mln. In total, guarantees can be offered to a maximum of SEK 888 mln.

• Sweden announced the allocation of SEK 300 million for indirect support for Ukraine's air defense. The funds are intended to compensate Romania for the transfer of the Patriot anti-aircraft missile system to Ukraine in 2024.

4. Business Landscape in Ukraine

• Nestlé is planning to invest approx. USD .230 mln in 2025 in modernization of enterprises and marketing in Ukraine. Despite the delay due to constant air hazards, a shortage of builders and labor, the project is expected to be launched in March 2025.

• Ukrainian competition authority approved acquisition by Kyivstar, Ukraine's largest electronic communications operator, of controlling shares of Uklon, one of the biggest call services in Ukraine. According to the assessment of the analytics, the current price of Uklon may be USD 40 - 80 mln.

• Ukrainian producer of furniture and Ukraine’s largest supplier to JYSK of cabinet furniture, company Accord Import, is investing USD 14 mln in the construction of a furniture factory in Khmelnytskyi, Ukraine. The launch of the first production lines is scheduled for July 2025, and the new factory should reach full capacity in September. The construction of the factory will allow the company to enter the top -5 manufacturers of cabinet furniture in Europe. Accord Import has built a 1.1 MW solar power plant and is building an additional 2.8 MW, and has also purchased a gas-piston plant.

• On 06 February 2025, Ukraine has made the first pipeline delivery of biomethane to Europe. Pipeline export of biomethane opens up prospects for the supply of environmentally friendly gas to Europe and will contribute to the development of the agricultural sector and investments in the field of bioenergy.

• In January 2025, Ukraine increased production of metal products. Compared to January last year, the production of pig iron increased by 7.2%, to 0.6 million tons, steel - by 12.3%, to 0.6 million tons, rolled steel - by 6%, to 0.48 million tons. Overall, these gains highlight a robust recovery in Ukraine's metal industry, reflecting positive trends in industrial output and economic resilience.

• On 23 January 2025, Ukrainian competition authority approved acquisition of the state-owned Ukrnafta, largest oil and gas production company in Ukraine, to buy a 51% stake in Alliance Holding LLC, which owns 118 Shell-branded gas stations in Ukraine. After the deal is closed, Ukrnafta will consolidate its status as the largest network in Ukraine - the number of its gas stations will increase by 22%, to 665.

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,

Business Sweden Kyiv Team