Business Sweden Ukraine Newsletter

September 2026

September was an exceptionally challenging month for Ukraine, marked by intensified Russian attacks on energy, transport, industrial and civilian infrastructure across the country. The continued pressure has affected businesses, disrupted logistics and energy supply, and once again highlighted the complex operating environment in which Ukrainian and international companies continue to work.

Despite these challenges, Ukraine’s business landscape continues to demonstrate resilience. September brought new foreign investment and localisation initiatives, expanded access to financing and war-risk mitigation instruments, and continued investment in energy, manufacturing and infrastructure - developments that are particularly relevant for international companies assessing opportunities in the Ukrainian market.

In this edition, we focus on the developments most relevant to Swedish businesses – from changing market and operating conditions to investment trends, financing instruments and emerging opportunities across energy, infrastructure, manufacturing, logistics, defence and reconstruction. Together, these developments provide a practical view of both the challenges companies face and the opportunities taking shape as Ukraine continues its recovery, modernisation and integration with European markets.

We remain fully available to provide tailored market guidance and support Swedish companies in navigating the Ukrainian market and identifying opportunities for long-term engagement.

KEY HIGHLIGHTS

• Since its official opening earlier this year, the Business Sweden office in Kyiv has continued to strengthen its role as a hub for Swedish business engagement in Ukraine. The office provides an on-the-ground platform for Swedish companies exploring and expanding their presence in the market, while facilitating dialogue with Ukrainian authorities, businesses, international partners and other key stakeholders. As reconstruction efforts advance and Swedish business interest in Ukraine continues to grow, the Kyiv office serves as an important meeting point for building partnerships, identifying opportunities and supporting long-term Swedish engagement in the country.
• In September 20-21, 2026, the “Sweden on Tour” initiative continued its regional outreach with a visit to Poltava, bringing Sweden closer to Ukrainian regions and creating opportunities for dialogue with local stakeholders. Organised with the participation of the Embassy of Sweden in Ukraine, the initiative supports stronger connections between Swedish actors and Ukrainian regions, while highlighting areas for cooperation in regional development, reconstruction and business.

REBUILD UKRAINE 2026

Preparations for the Swedish Pavilion at ReBuild Ukraine 2026, taking place in Warsaw on 13-14 November, are now in full swing. For the fourth consecutive year, Business Sweden will bring together Swedish companies and partners to showcase solutions and expertise relevant to Ukraine’s reconstruction and long-term development.

Registration for the Swedish Pavilion is well underway, with a growing number of Swedish companies already confirmed to participate. We have also started the matchmaking process, working with participating companies to identify relevant Ukrainian stakeholders, potential partners, project owners and business opportunities ahead of the event.

The Swedish Pavilion provides a platform for companies to strengthen their visibility in the Ukrainian market, establish direct dialogue with decision-makers and potential partners, and explore concrete opportunities linked to Ukraine’s reconstruction and modernisation.

To support companies preparing for ReBuild Ukraine, we have already conducted two dedicated webinars covering the Swedish Pavilion and relevant opportunities in the Ukrainian market. Recordings of both sessions are available here:

• [ReBuild Ukraine 2026: Construction & Energy Sectors Market Opportunities Webinar](https://ukraine.swedenalliances.com/events/rebuild-ukraine-webinar • ReBuild Ukraine 2026: Financing Pathways and Instruments for Projects in Ukraine in 2026

Interested in joining us in Warsaw? Please register here: ReBuild Ukraine 2026 6th International Exhibition & Conference.

For further information about participation in the Swedish Pavilion, please visit our respective ReBuild Ukraine 2026 web-page.

UPCOMING EVENTS

Please follow our Events page for the latest updates on upcoming Business Sweden events, webinars, and engagement opportunities related to Ukraine.

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:

• Solar energy supply for Water Pumping Stations and partial renovation of sewage collectors.
• Energy Efficiency Refurbishment of the Volodymyr Territorial Medical Association.
• Sustainable Water Supply Modernization.
• Improvement of Energy Efficiency and Energy Security of the Water Pumping Station, Partial Renovation of the Existing Water Networks.
• Solar energy supply for water pumping stations and partial renovation of sewage collectors.
• Improvement of Energy Efficiency and installation of Solar PV plants.

Meanwhile, EBRD is conducting tenders for the below projects in Ukraine:

• Construction of a new combined heat-and-power plant with up to 250MW of electrical output capacity.
• Supply of two sets of Modular CHP Units with a capacity of approximately 4.5 MWe each, with a waste heat recovery boilers, additional necessary equipment and related services,
• Consultancy services for the Project Implementation Support assignment, including procurement support, engineering & works supervision.
• Capital repairs of selected M-06 Kyiv-Chop road sections (Rivne region), approx. 40km.
• Supply, installation and commissioning of cogeneration units - 3 lots.
• Replacement of priority water steel pipelines (approx.11 km).

KEY UPDATES

September was a particularly challenging month for Ukraine, marked by intensified and repeated Russian attacks on energy, industrial, transport, and civilian infrastructure across the country. Despite these pressures, Ukraine’s business environment continued to demonstrate resilience, with new foreign investment initiatives, expanded financing and risk-mitigation instruments, and continued activity across key sectors of the economy. As we enter October, we are pleased to share the key developments that shaped Ukraine’s business and investment landscape throughout the past month.

Ukrainian Government

• The Ukrainian Government has expanded war-risk insurance and preferential financing mechanisms for businesses, strengthening support for companies operating and investing in the country. Kyiv and Kyiv region have been added to the areas covered by the higher-risk insurance mechanism, while eligible coverage has been broadened to include additional assets, including fuel, storage facilities and transport equipment. Preferential financing can now support not only the reconstruction of damaged facilities but also investments in business resilience, including distributed energy generation, fuel and warehouse infrastructure and processing facilities. Loans of up to UAH 1 bln are available, with the state compensating 5.5 percentage points of the bank’s base interest rate. The measures provide additional tools for companies to mitigate war-related risks, restore operations and invest in more resilient infrastructure.
• Ukraine’s annual inflation accelerated to 8.1% in August 2026, up from 7.7% in July, according to the State Statistics Service. Consumer prices increased by 0.1% month-on-month, while core inflation reached 0.5% in August and remained at 8.1% year-on-year. Price pressures were particularly visible in transport, where costs increased by 4.4% during the month, largely driven by higher fuel prices, while food and non-alcoholic beverages declined by 1.3%. The figures point to continued inflationary pressures in the Ukrainian economy, particularly related to logistics and energy costs, which remain important factors for companies assessing operating conditions and costs in the market.
• Ukraine is seeking EUR 600 mln in financing to stabilise its electricity balancing market, with the European Bank for Reconstruction and Development (EBRD) among the potential partners. The funding would support financial recovery of the balancing market, which plays a critical role in managing differences between planned and actual electricity generation and consumption and continues to face significant accumulated debt. Ukraine and the EBRD are already implementing 13 energy projects worth more than EUR 3 bln across gas, electricity generation and transmission, hydropower and renewable energy. The initiative reflects the continued scale of investment needs across Ukraine’s energy system and the growing focus on market stability, modernisation and resilience.

International Cooperation

• Danish investment funds Final Frontier and Myriad Defence Fund have joined forces to establish a new EUR 100 mln defence technology fund focused on early-stage companies in the Nordic countries and Ukraine. Final Frontier Fund II will target pre-seed and seed investments in technologies relevant to the future European defence industry, with the first closing planned by the end of 2026. Beyond financing, the platform will support companies with scaling, access to industry expertise and navigating defence procurement processes. The initiative creates a new investment link between the Nordic and Ukrainian defence-tech ecosystems and reflects growing opportunities for cross-border technology partnerships and industrial cooperation in the sector.
• Denmark announced a new USD 275 mln military support package for Ukraine, with a focus on strengthening air defence capabilities and supporting Ukraine’s defence sector. Denmark remains one of the key partners supporting Ukrainian defence production, including through the so-called “Danish model”, which enables direct financing of procurement from Ukrainian defence manufacturers. The continued support reflects deepening defence-industrial cooperation between Ukraine and the Nordic region and contributes to the development and scaling of Ukraine’s domestic defence production capacity.
• Norway will provide NOK 1 bln (approximately EUR 90 mln) in additional non-repayable financing to Ukraine through the EU’s Ukraine Facility, becoming the first non-EU country to contribute to its budget-support mechanism. The funding will support critical public services and the implementation of reforms under the Ukraine Plan, including measures in the energy and anti-corruption areas linked to Ukraine’s EU integration process. The contribution further broadens international participation in the Ukraine Facility and reinforces the financing framework supporting Ukraine’s macroeconomic stability, reforms and long-term recovery.

Sweden in Ukraine

• Sweden will donate 10 Coast Guard boats to Ukraine to strengthen the country’s maritime and emergency-response capabilities. The workboats and speedboats will be transferred to the State Emergency Service of Ukraine and used for specialist waterborne operations, including riverbed demining, towing and transportation. The donation represents another practical contribution to Ukraine’s civil protection and resilience and supports capabilities important for restoring safe access to waterways and affected infrastructure.
• Sweden announced an additional SEK 270 mln in support for Ukraine, primarily aimed at strengthening the country’s air defence capabilities. The package includes a further USD 14 mln contribution to the NATO-administered Prioritised Ukraine Requirements List (PURL), which facilitates the provision of high-priority US defence equipment, including air defence systems and ammunition, to Ukraine. The latest contribution brings Sweden’s total support through PURL to USD 552 mln and reflects the country’s continued long-term security commitment to Ukraine.

Business Landscape in Ukraine

• Business activity in Ukraine weakened in August after two consecutive months of improvement, according to the Institute for Economic Research and Policy Consulting’s monthly survey of 465 industrial enterprises. The Business Activity Recovery Index declined to -0.16 from -0.11 in July, accompanied by weaker production and export expectations and a reduction in average order-book coverage from 2.9 to 2.6 months. Businesses also became more cautious about their longer-term outlook, although expectations for the next two years remained positive. The results point to continued uncertainty in Ukraine’s operating environment and provide an important indicator for international companies assessing market demand, production conditions and near-term business prospects.
• ArcelorMittal announced that it is unable to safely and sustainably restart operations at ArcelorMittal Kryvyi Rih following four missile strikes on the facility over a five-week period. The attacks resulted in five fatalities, 17 injuries and extensive damage to production facilities, while the company is now focusing on preserving the plant’s infrastructure to maintain the possibility of restarting operations in the future. Since the start of the full-scale war, ArcelorMittal has provided more than USD 700 mln to support the continuity of its Ukrainian operations and now expects to record an approximately USD 1 bln impairment related primarily to the Kryvyi Rih assets. The development highlights the significant impact of continued security risks on Ukraine’s industrial production and reinforces the importance of resilient energy, logistics and industrial infrastructure for companies operating in the market.
• Raiffeisen Bank and the European Bank for Reconstruction and Development (EBRD) have made the full EUR 200 mln portfolio guarantee programme available to support financing for businesses in Ukraine, following the signing of its fourth EUR 50 mln tranche. The EBRD guarantee covers up to 50% of the credit risk on new financing, with a focus on critical sectors including agriculture, transport and logistics, manufacturing and processing. Eligible investment projects can also benefit from technical assistance and EU grants under the EU4Business initiative. During the programme’s first year, Raiffeisen Bank financed 395 projects for 286 businesses, demonstrating continued demand for investment financing and expanding access to capital for companies operating in key sectors of the Ukrainian economy.
• Ferrexpo, one of Ukraine’s largest iron ore producers, secured shareholder approval for a USD 100 mln capital raise aimed at strengthening liquidity and supporting the restart and stabilisation of its operations in Ukraine. The financing package follows a temporary production suspension and includes significant commitments from private investors, alongside a USD 15 mln credit facility provided earlier in September to support working capital. Ferrexpo resumed production on 7 September, with the new capital expected to support operational continuity and exports. The development demonstrates continued private investment in Ukraine’s major industrial assets despite wartime challenges and highlights ongoing efforts to maintain production and strengthen the resilience of the country’s mining and industrial sectors.
• Zaporizhstal, one of Ukraine’s largest industrial enterprises, reduced rolled steel production by 19.1% year-on-year in January–August 2026, while steel output declined by 20.1% and pig iron production by 22.3%. The decline accelerated sharply in August following Russian attacks that damaged the plant’s energy and production infrastructure and resulted in a temporary shutdown. The disruption highlights the continued exposure of Ukraine’s industrial sector to security and energy-related risks, underlining the importance of resilient energy infrastructure, industrial protection and reliable supply chains for companies operating in the market.
• Logistics lead times for Ukrainian agricultural exports have increased by 40–50% following intensified Russian attacks on port infrastructure. Exporters have increasingly redirected cargo through Danube ports and rail and road routes across Ukraine’s western border, where limited capacity and additional transshipment requirements are extending delivery times. In response, the Government has introduced measures allowing longer settlement periods for a range of agricultural exports. The disruption highlights continued demand for resilient logistics, transport infrastructure, storage and supply-chain solutions as Ukraine works to maintain export capacity and diversify trade routes.
• Labour shortages remain the leading challenge for businesses operating in Ukraine, cited by 70.8% of companies surveyed by the Business Ombudsman Council and the Institute for Economic Research and Policy Consulting. Other major constraints include rising costs of raw materials and resources (48.7%), shrinking markets (34.2%), logistics limitations (32.9%) and energy supply challenges (28.2%). For international businesses, war-related risks remain a key barrier to establishing or expanding operations, while Ukraine’s continued integration with the EU is increasingly influencing investment decisions. The findings provide an important indication of the practical operating conditions companies should consider when entering or expanding in the Ukrainian market.
• Finnish manufacturer Reka Rubber Group will invest EUR 5 mln in its first production facility in Ukraine, located in Novoselytsia, Chernivtsi region. The company will renovate a former furniture factory to produce silicone and rubber components for heavy machinery, including hoses, seals and anti-vibration systems, with production expected to supply European manufacturers. The first stage is expected to create around 60 jobs, potentially expanding to 160, with major construction works scheduled for completion in early 2027. The investment represents a concrete example of a Nordic industrial company establishing manufacturing operations in Ukraine and highlights the country’s potential as a production base integrated into European industrial supply chains.
• Taiwanese industrial group TCC Group Holdings has agreed to acquire 100% of Ivano-Frankivskcement (IFCEM), one of Ukraine’s largest cement producers, in a transaction valued at up to EUR 750 mln. IFCEM has annual cement production capacity of 4.3 mln tonnes and accounts for approximately 36% of the Ukrainian market, while the transaction also includes businesses producing roofing materials, gypsum products and dry construction mixes. Subject to regulatory approvals and customary closing conditions, the acquisition represents a major foreign investment in Ukraine’s industrial sector and highlights growing international interest in production capacity linked to the country’s future reconstruction and infrastructure needs.
• Turkish electrical equipment manufacturer Astor Enerji is considering investing up to USD 200 mln in a new production complex in Kyiv region. The proposed facility would manufacture energy storage systems, battery solutions, transformers and other electrical equipment, following a cooperation memorandum signed with the Kyiv Regional Military Administration. If implemented, the project would expand local manufacturing capacity, introduce new energy technologies and contribute to strengthening Ukraine’s energy resilience. The potential investment highlights growing international interest in localising energy equipment production in Ukraine as demand for modern, resilient energy infrastructure continues to increase.

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