Dear Partners,

As we approach the end of 2025, we are pleased to share the latest developments across Ukraine’s rapidly evolving reconstruction and investment landscape. The months of October and November have been exceptionally dynamic, marked by a high concentration of business events, policy updates, and investment-driven news that provide valuable insights for Swedish companies.

In this edition, we highlight key trends, regulatory updates, and sector-specific opportunities across priority areas such as infrastructure, energy, healthcare, and manufacturing. We outline where recovery efforts are accelerating and how Swedish technology, expertise, and solutions can contribute to Ukraine’s rebuilding process.

We remain fully available for tailored market guidance and look forward to supporting your continued involvement in Ukraine’s recovery and long-term transformation.

KEY HIGHLIGHTS

• On November 13-14, 2025, the Swedish Pavilion took stage at the 5th International Exhibition & Conference “ReBuild Ukraine: Construction & Energy”, a key platform uniting governments, businesses, and financial institutions to accelerate Ukraine’s reconstruction. The Pavilion brought together 50+ companies and showcased the best of Swedish experience and expertise in Urban Development, Construction, Energy, Industry, Transport, and Housing, highlighting how Swedish companies are supporting Ukraine with resilience, innovation, and long-term commitment.

The event also provided opportunities for Swedish companies to connect with Ukrainian ministries, regions, municipalities, and businesses, fostering relationships, sharing experiences, and exploring new collaborations for future reconstruction projects. By bringing together Swedish companies and organizations, the Pavilion served as a platform to position Sweden’s collective involvement in Ukraine’s rebuilding efforts, demonstrating both capabilities and commitment to supporting Ukraine’s recovery.

• Since late October, Ukraine has faced a series of large scale attacks on energy infrastructure, including power plants, substations and networks, resulting in frequent power outages and blackout schedules nationwide. In early November, these attacks escalated sharply: one of the biggest strikes targeted generation capacity, causing state owned power plants to shut down and forcing blackout regimes in many regions.

Despite the damage and blackout schedules, many Ukrainian regions as well as businesses are showing resilience: ongoing efforts to restore power, adapt operations under constraints, and plan for reconstruction and stabilization make clear that rebuilding and continuity remain priorities.

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 a number of tenders for several projects in Ukraine, among others:

• Energy efficient renovation of kindergartens in Vinnytsia region.
• Energy efficient renovation of the healthcare center in Khmelnytskyi region.
• Rehabilitation of wastewater services in Poltava, Lutsk and Khmelnytskyi regions.
• Construction of Nearly Zero Energy School Building Project in Kyiv region.
• Nearly zero energy renovations of school buildings in Lviv, Ternopil and Kyiv region.
• Introduction of up-to-date energy efficient solutions for district heating in Poltava.
• Capital repair of Individual Heat Substations and replacement of heating systems in public buildings in Kyiv.
• Supply of off-grid solar power stations for public services in Kyiv and Kyiv region.

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

• Procurement of technical assistance services for Ukraine Facility for Infrastructure Reconstruction (Ukraine FIRST) Project.
• Supply of new low-floor buses 12 meters length in Lviv, including a set of mandatory, consumables and wearing spare parts, a set of equipment and tools for maintenance and repair, and related services.

Moreover, the Estonian Centre for International Development (ESTDEV) has launched an international public procurement for cybersecurity initiatives aimed at strengthening Ukraine’s cyber resilience over the next four years. The first projects will be implemented in cooperation with the Tallinn Mechanism Project Office in Kyiv (TMPO), the Swedish International Development Cooperation Agency (Sida), and additional international partners.

KEY UPDATES

Now that autumn is well underway, we’re pleased to update you on recent business and investment trends driving Ukraine’s economic landscape.

As we approach the end of 2025, we are pleased to share the latest updates on business and investment trends shaping Ukraine’s economic landscape.

1. Ukrainian Government

• The Government of Ukraine approved a package of measures to simplify doing business, strengthen support for domestic producers, and expand access to finance, including digitalising inspections and tightening localisation rules in public procurement. A major step in privatisation is the launch of the sale of 99.9952% of Sumykhimprom via a ProZorro auction with a starting price above approximately EUR 20.5 mln, alongside new transparency requirements for SOEs. Such steps signal a renewed push to attract private capital into strategic industrial assets, reduce fiscal risks from state-owned enterprises, and create clearer, more predictable rules for investors entering Ukraine’s recovery-era market.

• Ukraine’s Asset Recovery and Management Agency (ARMA) has launched a Prozorro tender to select a manager for IDS Ukraine, the producer of Morshynska and Myrhorodska, seized from sanctioned oligarch Mikhail Fridman. The asset is highly profitable, with expected budget inflows of over EUR 490,000 per month. This underscores Ukraine’s commitment to transparent management of seized assets and creates opportunities for credible market players in FMCG and beverage production.

• The Government of Ukraine has increased compensation for constructing cattle farms in frontline regions from 25% to 50%. This enhanced support aims to stimulate investment in livestock production and processing, helping producers rebuild capacity despite proximity to active hostilities. The measure reduces capital costs for agribusinesses, accelerates recovery of milk and value-added production, and supports jobs and stability in frontline communities.

2. International Cooperation

• The European Investment Bank disbursed EUR 100 mln to strengthen Ukrainian economic resilience and municipal heating infrastructure. EUR 70 mln supports SMEs via Ukrgasbank, promoting job retention and energy-efficiency investments, while EUR 30 mln funds repair and upgrades of district heating systems through Ukrgasbank and Ukreximbank, ensuring reliable heat for schools, hospitals, and homes. The funding sustains local economic activity, enhances energy security, and modernises critical infrastructure, reinforcing business continuity and community resilience ahead of winter amid ongoing attacks.

• Germany plans to increase its Ukraine aid by EUR 3 bln for the 2026 budget. The additional funding will cover artillery, drones, armored vehicles, and replenishment of Patriot systems, topping up the previously planned EUR 8.5 bln support. The boost reinforces Berlin’s military and civilian support channels, ensuring continued backing for Ukraine amid intensified Russian attacks on energy infrastructure, while signalling long-term commitment despite Germany’s domestic budget constraints.

• The EU Council approved the fifth Ukraine Facility payment of over EUR 1.8 bln to Kyiv. This tranche follows Ukraine’s completion of nine reform steps, supporting macro-financial stability and the continued operation of public administration. The funding reinforces reform implementation, underpins economic stability, and signals ongoing EU commitment to Ukraine’s recovery, reconstruction, and alignment with EU accession objectives.

• Denmark has announced its 28th military assistance package to Ukraine worth approximately EUR 186 mln, including funding for the Danish Model in 2025, the U.S.-led PURL procurement initiative, and fuel supplies for the Ukrainian Armed Forces. With Denmark committing nearly EUR 9.4 bln in support through 2028, this sustained investment strengthens multinational procurement channels and increases demand for defence technologies, logistics solutions, and supply-chain capacity.

• Ukraine received a EUR 5.9 bln financial assistance tranche from the EU. President Ursula von der Leyen confirmed disbursements under ERA Loans (EUR 4.1 bln) and the Ukraine Facility (EUR 1.8 bln), alongside three proposed models for securing future funding, including a reparations-backed loan based on frozen Russian assets. The funds bolster macroeconomic stability, defence capacity, and infrastructure recovery, while Ukraine’s progress on key structural reforms keeps the Ukraine Facility pipeline open and signals policy continuity for investors and partners.

• The EU will channel over EUR 140 mln to support Ukrainian dual-use technologies via the Ukraine Facility programme. Deputy Defence Minister for Strategic Industries of Ukraine Hanna Hvozdiar announced that, for the first time, Ukraine Facility funds can be directed to dual-use sectors, including next-gen drones, navigation/communication systems, aerospace tech, and precision metallurgy. This unlocks new financing for high-tech Ukrainian manufacturers, accelerates scaling and investment attraction, and strengthens both Ukraine’s and the EU’s industrial resilience in strategic sectors.

• Norway’s Ukraine Investment Fund will invest EUR 8.5 mln to expand the M10 Lviv Industrial Park. The financing, managed by Norfund, will support new production, warehousing, and office capacity, ultimately enabling the creation of several thousand jobs. This marks a strong signal of confidence from a European sovereign investor, accelerates the development of modern industrial infrastructure near the EU border, and strengthens Ukraine’s manufacturing and logistics attractiveness during wartime.

• EBRD and IFC are investing approximately EUR 43 mln into Dragon Capital’s Rebuild Ukraine Fund. Each institution will contribute EUR 21.5 mln to provide long-term capital for Ukrainian SMEs and mid-cap companies, with the agreement signed at the “ReBuild Ukraine: Construction & Energy” conference in Warsaw. The investment strengthens private-sector recovery, expands financing for resilient Ukrainian businesses, and signals continued confidence from major international financial institutions.

• The Netherlands announced a EUR 55 mln contribution to the World Bank’s URTF fund for Ukraine’s recovery. The added funding strengthens Ukraine’s reconstruction pipeline and signals continued EU unity on security, sanctions pressure, and joint defence initiatives, including drone production cooperation and participation in NATO’s PURL mechanism.

3. Sweden in Ukraine

• Sweden announces a new SEK 1.1 bln civilian support package for Ukraine, focusing on urgent winter needs and long-term resilience. The package addresses acute challenges caused by intensified Russian attacks on Ukraine’s energy and civilian infrastructure.

Funding priorities include:

• SEK 700 mln to the Nordic Environment Finance Corporation for green reconstruction, supporting municipalities in rebuilding infrastructure sustainably.SEK 225 mln to the Energy Community Ukraine Energy Support Fund for electricity generation and critical repairs during winter.
• SEK 115 mln via the World Bank’s URTF for energy and housing repairs, refugee support, and strengthening public service delivery.
• SEK 50 mln through the EBRD to advance reforms linked to Ukraine’s EU integration and economic resilience.
• SEK 22 mln for life-saving HIV and tuberculosis programmes delivered through Sida.

• On November 6, 2025, Sweden and Ukraine have signed a Letter of Intent to deepen cooperation on defence innovation, including establishing a Swedish-Ukrainian Defence Innovation Hub in Ukraine. This partnership opens new opportunities for Swedish companies to co-develop and scale battlefield-proven technologies, participate in joint production, and access emerging defence innovation ecosystems. It also signals strong long-term demand for resilient industrial capabilities and advanced R&D collaboration.

• The Government of Sweden has authorised disbursements of SEK 916 mln to multinational defence funds supporting Ukraine, enabling further investment in drones, robotics, spare parts, anti-drone systems, and combat aircraft components. The funding reinforces Sweden’s long-term engagement in Ukraine’s defence industrial development and strengthens cooperation channels with NATO, the UK, the US, and the Netherlands.

4. Business Landscape in Ukraine

• The EBA Business Climate Index improved across all Ukrainian regions, with the West showing the strongest performance. Lviv leads with 65% of companies rating conditions as satisfactory and 74% operating at full capacity, while Kharkiv remains the most challenged despite an index uptick from 1.45 to 1.92. Rising business sentiment, despite labour shortages, regulatory volatility, and war risks, signals resilience and growing operational capacity, highlighting where investor interest, risk-mitigation tools, and infrastructure support can have the greatest impact.

• Ukrainian and Dutch investors launch construction of the “Feednova Center” plant in Cherkasy region, Ukraine. EFI Group, together with strategic partners from the Netherlands and Denmark, invests EUR 14.4 mln in the first phase of the project, with total planned investments exceeding EUR 20 mln. The facility will produce high-protein feed additives and animal fats, processing over 150 tons of raw materials per day and exporting more than 80% of output to the EU and Asia. Despite wartime challenges, this project strengthens Ukraine’s agri-industrial sector, creates over 80 local jobs, introduces modern European production standards, reduces environmental risks, and increases domestic value addition in the meat-processing supply chain.

We look forward to sharing further insights in the months ahead. If you have any questions or would like to contribute content for future editions, please feel free to contact us. Thank you for your continued interest and engagement.

Best Regards,

Business Sweden Kyiv Team