Dear Partners,

As summer winds down and the autumn business season kicks into full gear, we’re pleased to share the latest edition of the Business Sweden Ukraine Newsletter. This season has already been marked by major milestones and high-level events across Ukraine’s reconstruction and investment landscape. In this edition, we spotlight key developments and emerging opportunities for Swedish companies active in, or looking to enter, the Ukrainian market, with a focus on recovery efforts, strategic investments, and sectoral shifts. We remain at your disposal for any questions or tailored guidance and look forward to supporting your engagement in Ukraine’s ongoing recovery.

KEY HIGHLIGHTS

• On 10–11 July, the Ukraine Recovery Conference 2025 (URC 2025) was held in Rome, bringing together governments, international financial institutions, businesses, and civil society to align efforts around Ukraine’s long-term recovery. Business Sweden was represented by Andreas Giallourakis, Trade Commissioner of Sweden to Ukraine, and Jan Larsson, CEO of Business Sweden, who joined high-level sessions and bilateral meetings alongside Swedish companies such as Volvo Group, Scania, Ericsson reaffirming Sweden’s strong commitment to Ukraine.

Key outcomes:

• Over EUR 3.5 bln in agreements, including EUR 2.3 bln in new financing under the Ukraine Investment Framework.
• Launch of the Coalition for Recovery and the European Flagship Fund.
• Launch of USD 200 mln PREPARE Ukraine program with the World Bank for investor-grade project preparation.
• Strong energy focus:
• Agreements signed between Westinghouse and Energoatom to produce VVER-1000-compatible nuclear fuel in Ukraine.
• MoU with the International Atomic Energy Agency to ensure safety at Khmelnytskyi Nuclear Plant.
• New energy partnerships with Terna, Siemens, Baker Hughes, and Snam to enhance resilience, digitalisation, and sustainability.

• On 17 July, the Ukrainian Parliament approved a wide-ranging cabinet reshuffle, marking a significant reconfiguration of the executive branch amid ongoing recovery efforts. Former Minister of Economy Yulia Svyrydenko was appointed Prime Minister, signalling a continued focus on economic reform, institutional efficiency, and post-war reconstruction.

Other key changes include the appointment of Mykhailo Fedorov (formerly Minister of Digital Transformation) as First Deputy Prime Minister, a reshuffle of leadership in the energy and justice portfolios, and the merger of the Ministries of Economy, Agrarian Policy, and Environment into a consolidated Ministry of Economy, Environment and Agriculture.

These structural adjustments reflect the government’s intention to streamline decision-making, reduce institutional overlap, and enhance coordination across economic and recovery-related portfolios - developments of particular interest to international partners and investors.

• As the summer concludes, Russia’s military aggression has escalated, with a marked increase in provocative attacks targeting civilian and energy infrastructure. Despite this, Ukraine remains resilient and diplomatically active, engaging in multilateral negotiations to mobilise further support, bolster air defences, and secure long-term guarantees for recovery and reconstruction.

OUR EVENTS AND REPORTS

Looking ahead, we are pleased to announce Business Sweden’s upcoming webinar, “How to Do Business in Ukraine,” taking place on 19 September 2024 (11:00–12:00 CET / 12:00–13:00 Kyiv time). This online event will officially kick off the new business season in Ukraine, where Business Sweden will highlight key market needs, emerging opportunities, and practical strategies to navigate ongoing challenges for Swedish companies active in or entering the Ukrainian market. The Swedish pavilion at Rebuild Ukraine will be presented, more info below. For more details and registration, please visit Event page on our website or contact us at: veronika.kalyta@business-sweden.se.

We encourage you to participate in IT Arena 2025, which will take place in Lviv on September 26-28, 2025. IT Arena is a premier tech event with a global outlook and scale, held annually in Lviv, Ukraine, on the last weekend of September. Known for its unique atmosphere that fosters innovation and connection, IT Arena is defined by productive networking, business matchmaking, and a festival spirit. For more information regarding the event, please visit IT Arena official web-site. Contact veronika.kalyta@business-sweden.se if you need support with your participation.

We are pleased to announce that the 5th International Exhibition & Conference “ReBuild Ukraine: Construction & Energy” will take place on 13–14 November 2025 in Warsaw, Poland. For the fourth time, a Swedish pavilion will be organized, offering Swedish companies and stakeholders a unique platform to showcase their expertise and connect directly with Ukrainian ministries, municipalities, and procurement representatives.

With over 6,000 participants from 30+ countries, ReBuild Ukraine is the leading international event focused on Ukraine’s reconstruction, spotlighting sectors such as construction, infrastructure, energy, green tech, and smart cities. For more information regarding the event, please follow the link. Interested participants are invited to register their interest at link or contact Mr. Peter Davidson, the responsible project manager, at peter.davidson@foreversustainable.se or +46 73 708 1501.

Please follow Event page on our website for more information on future events.

In addition, Business Sweden is pleased to present the "Ukraine Business Climate Survey 2025", which offers critical insights into how Swedish companies are navigating the complex landscape, what they see as key opportunities, and where they encounter challenges - from customs and regulation to infrastructure and financial access. We encourage you to explore the "Ukraine Business Climate Survey 2025", which offers critical insights into how Swedish companies are navigating the complex landscape on our website.

TENDER OPPORTUNITIES

We encourage you to visit our Tender Opportunities page, where we publish relevant local and international procurement calls. Stay informed and explore how your company can contribute to Ukraine’s reconstruction efforts by engaging in current opportunities.

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

• Repair and reconstruction of damaged critical infrastructure in Chernihiv, Nizhyn, Okhtyrka, Trostianets and Pervomaisk.

• Nearly zero energy reconstruction of school building in Kyiv region.

• Supply and installation of a flue condenser for a biomass boiler to improve the provision centralised heat supply services in Lutsk.

• Supply of off-grid solar power stations for public services facilities Kyiv and Kyiv region.

• Introduction of up-to-date energy efficient solutions for district heating in Poltava.

In addition, EIB is conducting tenders for the following projects:

• Construction of the water treatment plant (filtration station) in Mykolaiv.

• Thermal renovation of public healthcare buildings in Volyn region.

KEY UPDATES

With summer behind us and the autumn season now in full swing, we are pleased to share key business and investment developments that have shaped Ukraine over the past few months.

1. Ukrainian Government

• The International Monetary Fund (IMF) maintains 2025 growth forecast for Ukraine at 2-3%, while warning that overall prospects remain highly uncertain due to the ongoing war. Positive developments such as reduced energy shortages are being offset by declining gas production and weaker agricultural exports.

• The Ukrainian government has approved the Single Project Pipeline (SPP) of Public Investment for 2026, covering 149 evaluated projects and programs across 12 strategic sectors including energy, transport, and digitalization. Backed by a medium-term investment plan and set to be published on the DREAM digital platform, the SPP marks a major step toward greater transparency and pipeline visibility, opening new opportunities for Swedish companies to engage in public tenders and public-private partnerships.

• Large-scale privatization continues in Ukraine: 100% of Vinnytsiapobutkhim shares were sold at auction for EUR 13 mln more than double the starting price. The asset, formerly owned by a Russian oligarch and confiscated by court decision, comes with investor obligations to preserve production, protect jobs, and settle outstanding debts. The sale reflects Ukraine’s growing commitment to transparent privatization and opens new entry points for foreign industrial investors.

• Major Privatization Milestone: 100% Stake in Ukrbud Construction Company Sold for Over EUR 16.5 mln. As part of Ukraine’s ongoing privatization reform, a landmark auction took place on 18 June 2025. Five bidders participated, driving the price up by more than threefold - from a starting bid of approx. EUR 5.5 mln to a final sale price of approx. EUR 16.5 mln. The winning bid was submitted by LLC “PETRO OIL & CHEMICALS.”

• Ukraine has approved an open tender for a 50-year production sharing agreement (PSA) on the Dobra lithium deposit in Kirovohrad region, targeting at least EUR 154 mln in investments. The tender, which is opened to qualified international and domestic investors, marks Ukraine’s first PSA for solid minerals and signals growing opportunities in critical raw materials for battery and green tech supply chains. The project is part of a broader strategy to build high-value industrial clusters and integrate Ukraine into global critical mineral markets.

2. International Cooperation

• At URC 2025 in Rome, the EU signed new agreements with international and national financial institutions worth EUR 2.3 bln under the Ukraine Investment Framework, aiming to unlock over EUR 10 bln in recovery investments. The package supports energy, infrastructure, manufacturing, and SME development, backed by guarantees and grants to de-risk private capital. With strong focus on green transition, critical infrastructure, and local economic recovery, the initiative creates concrete entry points for Swedish companies seeking long-term strategic partnerships in Ukraine.

• At URC 2025, the European Commission announced the creation of the European Flagship Fund for the Reconstruction of Ukraine, an equity-focused investment fund aiming to mobilize EUR 500 mln by 2026. Backed by initial capital from the EU, France, Germany, Italy, and Poland, the fund will support projects in renewable energy, infrastructure, digitalization, industrial modernization, dual-use goods, and critical raw materials. The initiative offers new risk-mitigated entry points for private and institutional investors, sending a strong signal of confidence in Ukraine’s long-term economic resilience.

• Ukraine and Switzerland are launching 12 new projects worth over CHF 93 mln (approx. EUR 99 mln) to support Ukraine’s reconstruction across energy, housing, healthcare, and education - many in partnership with Swiss companies. The initiative will create jobs, support local production, and modernize frontline infrastructure, offering a model for effective public-private cooperation.

• Denmark will allocate an additional approx. EUR 67 mln to the Ukraine Fund to support Danish investments in Ukraine’s reconstruction—unlocking at least approx. EUR 200 bln in new projects through the Danish Export and Investment Fund (EIFO). The move strengthens risk guarantees for foreign businesses and sets a strong example of how public financing tools can mobilize private sector involvement.

• Ukraine and the EU have jointly launched BraveTech EU, a EUR 100 mln defence tech initiative to scale battlefield-tested Ukrainian innovations across Europe. Co-financed by Ukraine and the EU (EUR 50 mln each), the program will support R&D, hackathons, and cross-border partnerships between startups, governments, and defence companies. Coordinated by Ukraine’s Brave1 and the EU’s EUDIO office in Kyiv, the initiative opens a new chapter for joint development and co-investment in high-impact military technologies, with clear entry points for Swedish tech and defence firms.

• The EU has signed agreements providing Ukraine with EUR 2.3 bln in grants and loan guarantees, expected to mobilize up to EUR 10 bln in recovery investments. The funding supports critical sectors such as energy, infrastructure, and industry, and includes the launch of a EUR 220 mln Ukraine Reconstruction Fund to stimulate private capital. The initiative strengthens EU–Ukraine economic cooperation and presents new entry points for European businesses seeking long-term engagement in Ukraine’s recovery.

• Denmark’s Export and Investment Fund (EIFO) has invested EUR 4.3 mln in D3 Defense Venture Fund to accelerate Ukraine’s defence tech ecosystem. As the first foreign sovereign investor in D3, EIFO’s contribution will help scale battlefield-tested innovations, such as drones, AI, demining solutions, and robotics, while opening pathways for cross-border partnerships and technology transfer. The move reinforces Ukraine’s role as a hub for defence innovation and offers a strategic model for Nordic investors seeking early access to dual-use and security technologies.

• The EIB Group and Finland’s export credit agency Finnvera have launched a EUR 30 mln pilot project to support Finnish exports to Ukraine under the InvestEU Export Credit Guarantee Facility. Backed by EIF guarantees, the initiative will reduce risks for Finnish SMEs entering the Ukrainian market and sets a precedent for similar mechanisms across the EU. As part of a broader EUR 300 mln EU program, the project strengthens cross-border trade and opens replicable pathways for Nordic and EU companies to engage in Ukraine’s reconstruction.

3. Sweden in Ukraine

• The Government of Sweden has approved procurement of additional defence equipment worth SEK 1.5 bln, including over 10 new gun barrels for the Archer artillery system, long-range strike capabilities, underwater systems, and logistics support. The package, linked to previous support commitments, also introduces innovative container-handling systems developed by Swedish companies Volvo and Scania to enhance Ukraine’s battlefield logistics.

• Sweden is contributing SEK 135 mln to strengthen Ukraine’s civil cybersecurity through the Tallinn Mechanism, a multinational initiative supporting resilience against cyberattacks on critical infrastructure. The support, managed by Sida, aims to protect public services and digital systems amid persistent Russian cyber threats, with Sweden and France co-chairing the Mechanism in 2025.

• Sweden has allocated nearly SEK 10 mln to Beetroot Academy to train over 2,000 professionals in Ukraine’s public administration, civil society, and IT sector. The initiative, running from 2025-2027, focuses on AI, data analysis, and other future-oriented digital skills to boost Ukraine’s resilience and support its path toward EU integration.

• The Government of Sweden is reprioritising development assistance for 2025, freeing up nearly SEK 1.7 bln to boost support for Ukraine and address global humanitarian crises. The move includes phasing out strategies for Afghanistan and the Asia-Pacific region, aligning aid with Sweden’s shift from “aid to trade” and its focus on urgent needs in Ukraine and Europe’s neighbourhood.

• The Government of Sweden will contribute SEK 550 mln to NATO’s trust funds for Ukraine, drawn from the 19th support package. SEK 300 mln will go to the Comprehensive Assistance Package (CAP) for non-lethal military aid, and SEK 250 mln to the Security Assistance and Training for Ukraine (NSATU) fund for rapid procurement of spare parts and logistical support.

• On August 24, 2025, Ukraine and Sweden have signed a Letter of Intent to jointly produce armaments in both countries, deepening bilateral defence industry cooperation. The document opens the door to joint projects, technology exchange, and co-production of military equipment, strengthening resilience and reciprocity in both defence ecosystems. The two sides also discussed expanding cooperation in military aviation, innovation, and space technologies, with immediate opportunities for Swedish-Ukrainian industrial partnerships.

4. Business Landscape in Ukraine: Energy & Construction

• As of 2025, seven wind power projects are under construction across Ukraine, with the total pipeline of ready-to-build wind projects in Ukraine currently standing at around 4 GW. Among the largest developments is the second phase of the Tyligulska Wind Power Plant, currently the most significant wind energy project in the country. Challenges remain, particularly in legislation and energy market conditions, including outstanding debts and a lack of long-term power purchase agreements.

• DTEK and UK-based Octopus Energy Group have launched RISE, a EUR 100 mln initiative to install rooftop solar and battery storage systems for Ukrainian businesses and public institutions. The program aims to support 100 local energy projects over the next three years, helping stabilize the grid and reduce outage risks. Installations will be managed by D.Solutions (YASNO), with systems operated via Octopus’s AI-powered Kraken platform, allowing real-time energy optimization and the ability to sell excess electricity back to the grid.

• A new construction waste recycling plant has launched in Mykolaiv, made possible through close cooperation with the Japan International Cooperation Agency (JICA). The facility, currently operating in test mode, processes debris from war-damaged buildings into reusable crushed stone for road repairs and construction. This marks a key step in promoting circular economy practices in the city.

We look forward to sharing more insights in the coming months. Should you have any questions or wish to contribute content for future editions, please do not hesitate to get in touch. Your continued engagement is greatly appreciated.

Best Regards,

Business Sweden Kyiv Team