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Newsletter #32 Reconstruction Ukraine - February 2026

Four years after the start of the full-scale invasion, February 2026 stands as a pivotal moment for Ukraine. While the country faces relentless attacks, it continues to show resilience. 

This edition of our newsletter opens with the findings of the RDNA5, the fifth joint Rapid Damage and Needs Assessment.

We also cover the major international announcements of the month:

• Launch of a new €71 million tranche of the Fonds Ukraine

• New 48-month programme from the IMF 

• The EBRD and Norway gas supply support to Ukraine

Finally, we highlight two encouraging signals from the private sector:

• Kniazha VIG launched the first war risk insurance mechanism backed by US reinsurance (DFC).

• DTEK partners with a US firm to introduce advanced drilling technology.

We are also excited to announce that our newsletter is evolving! From March 2026, each edition will bring you financing opportunities currently open to French companies, expert perspectives from sector specialists, practical cases and much more! Ukraine is one of the most significant business frontiers of this decade and we are here to make sure you can engage with confidence.

Enjoy the read!

Ukraine Reconstruction: Key Figures

• Fifth Rapid Damage and Needs Assessment (RDNA5)

The World Bank Group, the Government of Ukraine, the European Commission, and the United Nations slightly after the 4th anniversary of the beginning of the full scale invasion have published their fifth Rapid Damage and Needs Assessment (RDNA5), providing an updated overview of the war's impact on Ukraine's economy and giving a detailed picture of where reconstruction efforts will be concentrated in the years ahead.

Reconstruction needs 

Recovery and reconstruction need over the next ten years are estimated at $587.7 billion USD. This figure grew by 12% over 2025.

• Direct damages are estimated at $195.1 billion USD, up 10.8% compared to RDNA4. Housing, transport and energy infrastructure remain the most severely affected sectors.

• Socio-economic losses have reached $666.7 billion USD, reflecting the deep consequences for production, employment, household incomes and public service delivery.

Most affected sectors

Financial requirements and 2026 priorities

For 2026, priority financing needs are set at $15.25 billion USD, covering both public investment projects and non-investment programs. RDNA5 highlights the key role of the private sector in the country's recovery. Provided that the necessary reforms are implemented, up to 40% of the recovery needs could be financed by private investment over the next decade. 

Read more

Source : RDNA5, Ministry of Finance of Ukraine

Key developments for Ukraine’s Reconstruction

• Ukraine ratifies agreement to join EU employment and social innovation programme

The Verkhovna Rada of Ukraine has ratified an agreement with the European Union allowing Ukraine to participate in the Employment and Social Innovation (EaSI) strand of the European Social Fund Plus (ESF+). This step enables Ukrainian organisations to officially apply for EU grant funding to develop projects focused on social innovation, social entrepreneurship, and inclusive employment opportunities.

What the EaSI programme supports

The EaSI programme finances initiatives aimed at strengthening labour markets and social inclusion, including:

• Research on labour market access, identifying the needs of different population groups in accessing jobs and improving working conditions.
  
   
• Inclusive workplace development, particularly for vulnerable groups.
  
   
• Promotion of social innovation, encouraging employers and communities to design and implement new social solutions.
  
   
• Bridging the skills gap, aligning educational programmes with labour market needs.
  
   
• Improving regulatory frameworks that support the development of social innovation.

Grant opportunities

Participation in EaSI will allow Ukrainian organisations to apply for grants ranging from approximately €500,000 to €1 million per project to implement social innovation initiatives.

Overall, Ukraine’s participation in EaSI is expected to expand funding opportunities for social projects while promoting inclusive employment and innovation across the country.

Source: Ministry of Economy of Ukraine

International Benchmark

• France launches new €71 million tranche of the Ukraine Fund 

France allocates a new tranche of €71 million to support the reconstruction of Ukraine’s critical infrastructure. On June 7, 2024, a bilateral agreement was signed by the French and Ukrainian authorities to establish a support fund for critical infrastructure and priority sectors of the Ukrainian economy. This fund has been renewed with the launch of a new call for projects on February 19.

The key figures:

• €71 million in total available funding for this new tranche
• Up to €7 million per project
• Maximum project duration of 16 months

The call for projects is open until 9 April 2026.

This new funding round demonstrates France’s continued commitment to Ukraine’s reconstruction, encouraging companies to contribute their expertise to projects that strengthen the country’s infrastructure resilience and economic recovery.

For more information watch the replay of our webinar.

Source: Direction Générale du Trésor

• Ukraine is strengthening defence cooperation with France through the Brave France Initiative

Ukraine's defence innovation hub Brave1 and France's Defence Innovation Agency (Agence de l'innovation de défense, AID) have signed a Letter of Intent to launch Brave France, a joint initiative aimed at deepening franco-ukrainian cooperation in defence technology.

The initiative encompasses:

• a joint grant programme to support Ukrainian and French defence innovations;

• hackathons aimed at identifying practical solutions and supporting startup development;

• testing innovations through the Test in Ukraine platform.

Ukraine and France have significant potential for defence technology cooperation. This partnership opens the way for Ukraine to access allies’ advanced technologies. At the same time, the French side gains access to a high-tech warfare experience.

The initiative is set to launch in the second quarter of 2026.

Source: Agence de l'innovation de défense de France, Ministry of Defence of Ukraine

• EBRD strengthens Ukraine's energy security with €85 million grant from Norway

The European Bank for Reconstruction and Development (EBRD) and Norway are continuing their close partnership in support of Ukraine's energy resilience. Norway has provided a new €85 million grant (NOK 1 billion) to enable state-owned gas company Naftogaz to purchase urgently needed natural gas.

The grant complements an EBRD loan of up to €500 million, signed in August 2025, and will further support Ukraine’s energy security through the financing of emergency gas purchases in light of war-inflicted damage to, and disruption of, natural gas production and supply. Together, this package strengthens Naftogaz’s ability to respond to ongoing wartime energy shocks.

Since 2022, the EBRD has mobilised €3.4 billion for Ukraine, including unfunded guarantees. Overall, the Bank has deployed close to €9.3 billion since 2022, including over €3.3 billion for the energy sector. This makes it Ukraine’s largest institutional investor since the start of the full-scale war.

Source: EBRD

• IMF approves US$8.1 billion arrangement for Ukraine

The Executive Board of the International Monetary Fund (IMF) has approved a 48-month Extended Fund Facility (EFF) arrangement for Ukraine amounting to SDR 5.9353 billion (approximately $8.1 billion).

Objectives of the programme

The programme aims to support the Ukrainian authorities in:

• maintaining macroeconomic and financial stability,

• restoring public debt sustainability under both baseline and adverse scenarios,

• advancing structural reforms that will support post-war recovery and Ukraine’s path toward EU accession.

Policy priorities

The new arrangement builds on the progress achieved under the 2023 IMF programme, while addressing the economic challenges resulting from the prolonged war.

Key macroeconomic priorities include:

• Prudent fiscal policy, including the preparation of a sustainable 2026 state budget, with measures to strengthen revenue collection and reduce tax evasion.
  
   

• Maintaining price stability and limiting external imbalances, including through greater exchange rate flexibility.
  
   

• Safeguarding financial sector stability.

The approval of the new IMF programme represents a key pillar of international financial support for Ukraine, helping to stabilise the economy in the short term while advancing reforms essential for long-term recovery and integration with the European Union.

Source: IMF

Focus on the private sector

• Kniazha VIG Launches war risk insurance with DFC reinsurance coverage

The insurance company Kniazha Vienna Insurance Group (Kniazha VIG), part of Vienna Insurance Group (VIG), has signed a reinsurance agreement with the U.S. International Development Finance Corporation (DFC). This partnership enables the company to introduce a war risk insurance mechanism aimed at protecting property assets across most of Ukraine, excluding territories located close to active combat zones.

Coverage capacity and structure

Kniazha VIG, together with Aon, has concluded a new agreement establishing a reinsurance coverage limit of up to $25 million with DFC. The agreement entered into force on 1 February 2026. Under the mechanism, the reinsurance structure will support a portfolio of war risk insurance contracts with a total coverage capacity of up to $100 million.

Support for businesses and households

The initiative will allow Kniazha VIG to significantly expand its offer of comprehensive and innovative war risk insurance solutions, particularly targeting:

• small and medium-sized enterprises (SMEs)

• individual clients.

This partnership represents an important step toward expanding access to war risk insurance in Ukraine, helping businesses and households mitigate investment risks and supporting broader economic resilience and reconstruction efforts.

Source: Kniazha VIG

• DTEK Partners with U.S. Firm to Introduce Advanced Drilling Technology in Ukraine

DTEK has signed an agreement with the U.S. company Turbo Drill Industries (DBA “Scout”) to introduce advanced American drilling technology in Ukraine and support the expansion of the country’s oil and gas production. This agreement represents the first partnership of its kind between a Ukrainian company and Turbo Drill Industries.

Technology deployment

Under the agreement, DTEK Oil&Gas will become the exclusive authorised provider in Ukraine of Turbo Drill Industries’ Vertical Scout technology. Vertical Scout is an advanced mechanical drilling system designed to stabilise the well trajectory from the early stages of drilling, helping to significantly reduce technical risks during operations.

The technology is expected to improve drilling speed and operational efficiency, making exploration and production projects more economically viable. Compared with conventional rotary steerable systems, the Vertical Scout system can deliver up to 30% cost savings, while improving the stability and precision of drilling operations.

Source: DTEK

CCI France Ukraine initiatives

• Services d’appui aux entreprises de la CCIFU

Navigating the specific challenges of the Ukrainian market often requires reliable local data and administrative support. The CCIFU provides on-the-ground assistance to help businesses understand the regulatory landscape, identify partners, and manage daily operations.

1. Conduct diagnostics

• Define a market entry strategy for Ukraine, tailored to the local context and reconstruction-related needs.

• Carry out company verifications to confirm existence, activities, and reliability.

• Answer strategic and ad hoc questions related to regulations, financing, contracts, markets, or potential partners.

2. Facilitate establishment

• Advise and support company incorporation.

• Offer HR solutions: recruitment, employer of record/payrolling, hosting services.

• Provide strategic support: business intelligence, operational resources, personalized assistance.

3. Let’s Rebuild Ukraine

• An exclusive operational tool dedicated to understanding and developing Ukraine’s private construction and building sector.

• Directory of key industry players: selection and presentation of 270 Ukrainian companies.

• Subscription system including regular updates and a CCIFU hotline for personalized follow-up.

4. Market intelligence and investigation

• Collect and analyze sectoral data: key figures, structure, market size, main players.

• Identify and select potential partners based on defined criteria.

• Provide long-term, on-the-ground support to turn projects into reality.

5. Support your communication in Ukraine

• Organize tailor-made events: receptions, product launches, conferences, forums.

• Coordinate on-site logistics: venue selection, service providers, translation, interpreting, transport, and accommodation.

• Design and produce communication tools adapted to Ukrainian audiences: visual materials, bilingual content, press relations, and media partnerships.

Coming next month — a new newsletter format !

This newsletter is evolving, and we are excited to share what is coming.

From March 2026, each edition will bring you financing opportunities open to French companies, expert perspectives from sector specialists, practical cases & testimonials from companies already active in Ukraine, travel advice for your business trips, and much more.

Ukraine is one of the most significant business frontiers of this decade and we are here to make sure you can engage with confidence.

Stay tuned!