Dear Partners,

As the new business season launches into full swing, we’re pleased to share the latest updates from Ukraine’s dynamic reconstruction and investment landscape. With summer behind us, this autumn has already kicked off with strong momentum, including the successful launch of Business Sweden Kick-Off Webinar "How to Do Business in Ukraine" and a packed calendar of upcoming events designed to support Swedish engagement in Ukraine.

In this edition, we spotlight the key developments, strategic shifts, and emerging opportunities for Swedish companies already active in Ukraine or looking to enter the market. From infrastructure and energy to health and manufacturing, we outline where recovery efforts are gaining pace and how Swedish solutions can play a role. We remain at your disposal for any tailored guidance and look forward to supporting your continued engagement in Ukraine’s recovery.

OUR EVENTS AND REPORTS

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, we are pleased to invite you to participate in the upcoming ReBirth of Ukraine trade mission, taking place from October 26-31, 2025, across Copenhagen, Denmark (October 26–29) and Stockholm, Sweden (October 29–31).

The delegation will include Ukrainian mayors, government officials, business leaders, associations, and project owners, offering Danish and Swedish stakeholders a direct channel to explore high-potential cooperation opportunities in Ukraine. The mission is designed to promote practical, actionable partnerships for Ukraine’s economic recovery, with a strong focus on public-private collaboration. It will feature B2B matchmaking, project showcases, and thematic sessions, connecting Ukrainian local authorities with Danish and Swedish counterparts across priority sectors. With Denmark and Sweden’s track record in sustainable development and municipal-led investment, this mission aims to deepen bilateral cooperation and unlock new avenues for growth and engagement.

To learn more and register, please visit the official event 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 several projects in Ukraine, among others:

• Rehabilitation of the wastewater treatment plant in Lviv.
• Energy efficient renovation of kindergartens in Vinnytsia region.
• Rehabilitation of wastewater services in Poltava, Lutsk and Khmelnytskyi regions.
• Construction of Nearly Zero Energy School Building Project in Kyiv region.
• Capital repair of Individual Heat Substations and replacement of heating systems in public buildings in Kyiv.
• 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.

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

• Procurement of construction supervision services: construction of overpass over railway with approaches on public road of national importance M-06 Kyiv – Chop.
• 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. Separately, JSC UkrTransNafta is initiating the procurement of a major overhaul of an electrical substation building, including the replacement of equipment, in the Lviv region.

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.

1. Ukrainian Government

• Ukraine has received EUR 1 bln from the EU under the 8th tranche of macro-financial assistance via the G7’s ERA (Extraordinary Revenue Acceleration) initiative. The funds are backed by expected revenues from frozen Russian assets. To date, Ukraine has secured EUR 10 bln from the EU under ERA, with more to follow through 2025. The EU remains Ukraine’s largest direct budget aid donor, having provided EUR 58.5 bln since February 2022.

• Ukraine has allocated land for the construction of a new Rheinmetall ammunition plant in a secure region of the country. The decision was announced by Prime Minister Denys Shmyhal following his meeting with Rheinmetall CEO Armin Papperger at the DSEI arms exhibition in London. The plant will support joint production of shells for Ukraine’s Defense Forces. Discussions also covered expansion of armored vehicle repair and production, as well as joint development of air defense solutions to counter drones.

• The Government of Ukraine has launched preparations to privatize state-owned stakes in Sense Bank and Ukrgasbank. The sale will follow a three-stage process: preparation, competitive selection, and final agreement. The move aims to reduce state presence in the banking sector and attract budget revenues. A financial stability review confirmed no systemic risks, and the Ministry of Finance plans to appoint a sale advisor by the end of autumn 2025.

2. International Cooperation

• In September 2025, the EU and Ukraine signed an agreement allocating EUR 2 bln to support Ukrainian drone production. Announced by European Commission President Ursula von der Leyen, the deal aims to strengthen Ukraine as Europe’s first line of defence and expand technological cooperation. Funds will be disbursed in tranches under clear conditions, with repayment only expected if Ukraine receives war reparations from Russia.

• Ukrainian company FPRT (founded by Fire Point, developer of the Flamingo cruise missile) will begin production of solid rocket propellant in Denmark from December 01, 2025. The facility is planned near Skrydstrup airbase (Vojens), home to F 35s, and aims to supply stable, ready to use propellant that is easier to store and deploy than liquid fuels. FPRT has secured a Danish registration (CVR) and positions the plant as a modern defence industry site supporting national defence programmes.

• Phoenix Tech Fund, a French venture capital fund, has raised EUR 40 mln from the EIB, Bpifrance, and AFD to invest exclusively in Ukrainian early-stage startups. The fund targets pre-seed and seed-stage companies, with investments of up to EUR 2 mln per startup. Private investors also joined the round, including Parrot founder Henri Seydoux. The fund plans to back the strongest teams across sectors, with a total target size of EUR 50 mln.

• On September 26, 2025, Denmark announced its 27th support package for Ukraine, valued at approx. EUR 347 mln. The package includes significant funding for Ukrainian defence industry orders, with approx. EUR 214 mln allocated to strengthen local production. Additional support measures were confirmed but not disclosed. Denmark called the investment one of the most effective ways to meet Ukraine’s pressing military needs.

• Croatian demining equipment producer DOK-ING has increased local production in Ukraine to 30%, with plans to reach 50% localization by 2026. Together with A3Tech, the company now manufactures components, assembles machines, and provides full-cycle maintenance. In 2024, eight demining vehicles were assembled in Ukraine, helping reduce servicing costs and improving turnaround times. DOK ING machines are currently operating in 10 regions, having cleared over 25 mln m² of land.

• Ukrainian defence-tech startup Norda Dynamics, which develops autonomous drone control software, has raised EUR 854,000 in a funding round led by Swedish investment firm Varangians. The funds will support team expansion, product development, and scaling. Norda’s flagship product, Underdog, has sold over 50,000 licenses, with projected 2025 revenue of approx. EUR 1.2 mln. The company now plans to enter international markets, including the U.S.

• Ukraine has received the first deliveries of military aid under NATO’s PURL programme (Prioritised Ukraine Requirements List), which enables the joint procurement of U.S. weapons using European funds. Four aid packages have been financed to date, with EUR 1.7 bln already committed by countries including the Netherlands (EUR 500 mln), Sweden, Denmark, Norway, and Germany. The initiative aims to accelerate delivery of high-priority systems, including Patriot and HIMARS missiles, with overall support expected to reach EUR 8.5 bln.

3. Sweden in Ukraine

• On September 29, 2025, the Government of Sweden announced a new civil support package worth SEK 1.1 bln to address Ukraine’s urgent reconstruction and humanitarian needs ahead of the winter season. The package focuses on strengthening energy resilience, supporting humanitarian relief, and enabling socioeconomic recovery. Key support areas include:

• Assistance to Ukraine’s energy and housing infrastructure, including repairs and winter preparedness.
• Humanitarian aid for food security, displaced populations, children, and frontline communities.
• Support for mine clearance, economic recovery, and vocational training in critical sectors like logistics and transport.
• Funding for independent media, judicial reforms, and maternal healthcare.

This substantial commitment reflects Sweden’s unwavering support for Ukraine’s recovery and resilience. The package is implemented in cooperation with international partners including the World Bank, UN agencies, and the Energy Community.

• As part of its 20th military support package, the Government of Sweden has doubled its funding for Ukraine-focused defence innovation, bringing the total to SEK 300 million. The initiative, led by the Swedish Defence Materiel Administration (FMV), aims to accelerate the development of cutting-edge anti-drone and aerial threat mitigation systems. This initiative opens opportunities for emerging defence innovators and deepens Swedish-Ukrainian cooperation in advanced security technologies.

• On September 11, 2025, the Government of Sweden presented its 20th military support package to Ukraine, valued at approximately SEK 9.2 bln, the largest to date. This package marks a major step in Sweden’s long-term defence cooperation with Ukraine, with an emphasis on procurement of newly produced materiel from the Swedish defence industry. Support highlights include: (1) artillery & long-range strike; (2) naval support; (3) air defence & sensor systems; (4) R&D and training.

With this package, Sweden shifts focus from spare donations to the procurement of newly manufactured systems, strengthening Ukraine’s long-term resilience and supporting Sweden’s defence industrial base.

• Sweden has become the first EU country to contribute additional funding to the Ukraine Facility, allocating approx. EUR 61.5 mln to support Ukraine’s state budget. The funds are tied to reform progress and aim to help cover key social expenditures. Sweden also supports the idea of a “reparations loan” using frozen Russian assets, potentially amounting to EUR 130 bln.

4. Business Landscape in Ukraine: Energy & Construction

• Alterra Group is developing the Peretyn logistics center in Lviv region, with approx. EUR 27 mln in private investment. The 51,000 sq. m project includes Ukraine’s first fire-resistant warehouse made from stabilised pine and will create over 700 jobs. First units are expected in 2025, with full completion by mid-2026. The site complements the existing Obriy retail park, home to tenants such as Epicentr, Nova Poshta, and Jysk.

• In September 2025, Ukraine’s first solar-powered polyethylene pipe plant, Planeta Plastyk, was launched in Irpin, Kyiv region. The facility produces pipes ranging from 16 to 800 mm in diameter, with an annual capacity exceeding 17,000 km for water, gas, and technical systems. The company aims to serve both the domestic market and exports.

• Meest Group is investing approx. EUR 26 mln in the construction of its largest logistics terminal in the west of Ukraine, located near Lviv’s ring road. The 24,000 sq. m hub will handle up to 1 mln parcels per day and serve key group companies including Meest Post, Cargo, and International. The terminal will feature class-A facilities, modern sorting lines, and a 700–1000 kW solar power plant, with completion expected by April 2026.

• Business activity is gradually returning to frontline regions, with Kharkiv and Zaporizhzhia leading in net business relocations in 2025. According to the Opendatabot research, Kharkiv region gained 374 companies, and Zaporizhzhia +276, despite ongoing security risks. Overall, 7,988 businesses relocated across regions in the first eight months of 2025, with trade, construction, agriculture, and real estate sectors most active. Kyiv remains the top relocation hub, both as origin and destination.

• In September, Denmark’s leading defense and aerospace company Terma A/S has opened a representative office in Kyiv. The company supplies components for F-16 jets and aims to deepen cooperation with Ukraine’s Air Force. The move signals long-term commitment and opens the door to joint projects in military and civilian aircraft development.

• DTEK has launched 200 MW of energy storage systems in partnership with U.S.-based Fluence, a global leader in battery storage. With EUR 125 mln in investments, the systems are connected in Kyiv and Dnipropetrovsk regions and can power 600,000 households for two hours. Built between March and August 2025, the six units (20–50 MW each) enhance grid resilience amid continued attacks, marking what DTEK calls a “historic step” for Ukraine’s energy security.

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

Best Regards,

Business Sweden Kyiv Team