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Ukraine Reconstruction Market Brief - May 2026

Editorial – May 2026

After the launch of the Ukraine Reconstruction Market Brief last month, we are now entering the rhythm we set out to keep: a monthly resource that is operational, focused, and built around the questions you actually face when investing in Ukraine.

In a market where opportunities are growing fast, knowing who provides capital and on what terms has become a decisive advantage. We have therefore devoted both our Open Funding section and our Flash Interview to the European Bank for Reconstruction and Development. Francis Malige, Managing Director and Head of the Financial Institutions Business Group, shares the EBRD's priorities for 2026 and his practical advice for French executives preparing an investment.

Our Regional Focus turns westward to a new region: Ivano-Frankivsk. Close to the EU border, well governed, and openly courting international partners, the city has quietly become one of Ukraine's most pragmatic entry points.

We are also delighted to introduce a new recurring section - Green Recovery: An Expert's View, where Veolia will share operational insights on the sustainable dimensions of Ukraine's recovery.

The reconstruction of Ukraine will not wait for a single, decisive moment. It is being built right now and the companies that engage today, with methodology and local understanding, will be the ones that shape what comes next.

As always, this brief is designed to be useful. 

Enjoy the read!

EBRD Financing in Ukraine

In a reconstruction landscape that demands both scale and speed, the European Bank for Reconstruction and Development (EBRD) has become the leading institutional investor in Ukraine since the start of the war and one of the most reliable entry points for French companies looking to invest with confidence.

In 2025 alone, the EBRD deployed a record €2.9 billion in Ukraine, its largest annual commitment ever, spanning energy security, private sector resilience, and green transition. For 2026, the Bank will continue to support business activities and the resilience of the Ukrainian economy.

For French companies, this is not a distant opportunity - it is an operational one.

Funding body: European Bank for Reconstruction and Development (EBRD)

Available instruments:

• Direct financing: From €5–10M (typical range: €10–25M+) for capital-intensive projects in renewables, energy storage, industry, logistics, agri-food processing, or large service platforms

• Indirect financing via partner banks: For investments below €5M, the EBRD works with 13 partner financial institutions in Ukraine through risk-sharing programmes, currently the most widely used and fastest-growing channel

Priority sectors for 2026:

• Renewable energy, battery storage, and decentralised power production

• Manufacturing, logistics, and selected tech activities

• Agri-business and export-oriented companies

• SME financing via Ukrainian partner banks

Eligible entities: Foreign companies (including French), private Ukrainian companies, SMEs via partner banks

→ Contact: EBRD office in Kyiv — kyiv(@)ebrd.com. For a facilitated introduction, contact Pascal Hieronimus – ccifu(@)ccifu.com.ua 

Regional focus –  Ivano-Frankivsk 

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Why a regional focus in this newsletter?

The reconstruction of Ukraine is not only happening at the national level. It is being built territory by territory, with very specific priorities, stakeholders, and opportunities at the local level.

The objective of this focus is simple:

→ Identify where the projects are located.

→ Understand the specific needs of local authorities.

→ Detect operational entry points for your company.

Every region featured is a gateway to the Ukrainian market.

Key figures

Ivano-Frankivsk combines strategic geography at the EU gateway with a skilled workforce and an administration that has been openly courting international investors. The figures below give a quick read of its scale.

Identified projects and needs

Why Ivano-Frankivsk ?

Ivano-Frankivsk is one of the most dynamic regional centers in Western Ukraine, combining:

• Strategic geographical location: Proximity to the Carpathian Mountains and EU borders.
• Human capital: A large pool of skilled professionals, strong universities, and significant scientific potential.
• Active city government: Openness to investors, transparency, and digitalization of services.
• Safety factor: A relatively stable rear-line region.
• Growing market: Active construction, business development, and a thriving IT sector.

Ivano-Frankivsk is a city with a European pace of development and a high level of entrepreneurial activity.

Read more

What does this mean for your company?

Ivano-Frankivsk offers French companies a concrete and lower-risk entry point into the Ukrainian market. Whether you operate in construction, energy, healthcare equipment, or tourism infrastructure, the city presents identified needs, a receptive municipal administration, and an established business ecosystem. Its proximity to EU borders also facilitates logistics and supply chain management for companies operating cross-border. 

For businesses considering their first investment in Ukraine, Ivano-Frankivsk combines opportunity with operational stability.

How to take action with the CCIFU?

Looking to go further with this data? The CCIFU provides concrete support to help you transform these opportunities into projects.

We can help you:

●     Identify the right contacts in Ivano-Frankivsk (local authorities, agencies, industrial partners).

●     Qualify ongoing projects and their maturity level.

●     Organize targeted introductions and meetings (on-site or remote).

●     Secure your market approach (regulatory framework, reliable partners, offer structuring).

●      Prepare a field mission or local establishment.

Operational contact

To initiate a process or explore these opportunities further:

👉 Pascal Hieronimus – Head of Business Services – ccifu@ccifu.com.ua

Next step: 

A simple 30-minute exchange will allow you to:

1. Validate the relevance of your positioning.
2. Identify concrete short-term opportunities.
3. Define a roadmap tailored to the Ukrainian market.

Association presentation -  DISTRICT#1

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DISTRICT #1 is a Ukrainian charitable foundation that deals with eliminating the consequences of the past and creating opportunities for the future. Founded in 2022 by a team of volunteers in Kyiv, the foundation responded to the urgent need to restore destroyed cities, provide humanitarian aid, and support affected communities.

Mission

Rebuilding Ukraine through a comprehensive approach.

Areas of work

●      Reconstruction and construction of housing for internally displaced persons (IDPs).

●       Rehabilitation of critical infrastructure (medical facilities, schools, water networks).

●       Humanitarian aid (food kits, hygiene supplies, fuel, construction materials).

●     Support for self-sufficiency (seeds, greenhouses, agricultural tools).

Chiffres clés 2024Key figures 2024

●       227+ homes repaired; 13 new homes built for IDP families in the Chernihiv region.

●       70,000+ people supplied with hygiene products through the 'Points of Invincibility' network.

●      6,000+ households reached with food and humanitarian kits.

●    7,645 people regaining access to medical care (renovation of a medical practice in Piskivka).

Why are we highlighting this initiative?

The reconstruction of Ukraine does not rely solely on large-scale infrastructure projects. It is also built on concrete, immediate actions that address the direct needs of people and territories.

By highlighting initiatives like DISTRICT#1, the CCIFU aims to build bridges between humanitarian commitment and corporate mobilization.

For French economic players, this is not just about financial contributions; it is about engaging in a structured and effective approach: valuing surplus stock, making in-kind donations, or providing equipment and expertise within a secure and regulated framework.

Partnering with this type of organization means taking concrete action today while contributing to the overall effort of resilience and national reconstruction.

→ Contact : help(@)districtone.foundation 

→ Site web 

Francis Malige 

Managing Director, Head of Financial Institutions Business Group at the EBRD

"The most credible projects are those that come early enough, are structured with rigor, and choose the right financing instrument from the outset based on their size and risk profile." 

In 2025, the EBRD provided Ukraine with a record €2.9 billion, with one overarching priority: keeping the country's economy running and essential services functioning in wartime.

Priorities

• energy security,
• private sector survival and job preservation,
• logistics,
• food production. 

In 2026, the EBRD focuses on private projects in renewable energy, manufacturing, logistics, and selectively in technology.

Financing modes 

→ Direct EBRD financing available from €5–10M

→ For smaller projects: 13 Ukrainian partner banks through risk-sharing programmes - the most accessible and fastest channel available today

Key takeaways for your company 

→ Engage the EBRD early - before your financing structure is set 

→ Design your project with an "Ukraine-ready" mindset from day one 

→ Match your financing instrument to the size and risk profile of your investment

A concrete example: In 2024, French group NJJ/Iliad completed the largest foreign direct investment in Ukraine since the start of the war,  in telecoms, backed by the EBRD, IFC, and the French government.

👉 Read the full interview with Francis Malige (2026 sector priorities, direct financing access, advice for French executives) on our website.

Infrastructure Reconstruction: Why Ukraine Needs a New Urban Management Model

Yevhen Kalinin, CEO of Veolia Ukraine

"For Ukraine, reconstruction means not only rebuilding destroyed networks, but creating a new urban energy architecture. Paradoxically, war is accelerating this necessary transition." 

According to the updated RDNA assessment (Government of Ukraine, World Bank, EU, UN), the total cost of reconstruction for 2026–2035 exceeds $588 billion — nearly three times Ukraine's projected GDP for 2025. This figure reflects the scale of destruction, particularly in the housing and energy sectors. This is not simply about rebuilding homes or roads, but also rebuilding critical infrastructure: energy, transportation, water supply, and heating networks.

The majority of Ukrainian urban infrastructure dates from the Soviet era - designed for a different economy, energy sector, and management model. Even before the large-scale invasion, heating network deterioration exceeded 70% in many cities, with heat losses during transport reaching 20 to 30%. War has merely exposed a problem that has been accumulating for years: massive attacks on energy infrastructure revealed that excessive centralization makes cities extremely vulnerable — damage to a major power plant or main network can leave entire areas without heating or electricity.

The diagnosis 

→ A Soviet-era system built on the principle of maximum centralization 

→ Heating supplied from large thermal power plants, functioning as a single monopolistic infrastructure 

→ Networks deteriorated by 70%+, with 20–30% of heat lost in transport 

→ Excessive centralization that makes cities extremely vulnerable to attacks

The model Veolia is bringing forward 

→ Decentralization and diversification of energy sources (gas CHP, biomethane, biomass, geothermal, waste heat) 

→ Far less vulnerable to damage - the failure of one element does not paralyze the entire system 

→ More efficient use of energy and reduced transport losses 

→ A combination of state control and private expertise, through PPP models from concessions to long-term infrastructure management contracts

A concrete example: In Poznań (Poland), Veolia has modernized heating networks by integrating combined heat and power plants powered by gas, biomethane, and industrial heat. Previously, over 80% of heat came from coal. Today, a modern multi-source combined heat and power plant already provides heating to 60% of residents (over 330,000 people out of 560,000). This new technology has achieved production efficiency of 92% and reduced CO₂ emissions by 25% (260,000 tonnes per year).

Key takeaways for your company 

→ Modernization of urban infrastructure is best achieved through a combination of state control and private expertise 

→ PPP models — concessions, long-term infrastructure management contracts, mixed companies — allow cities to attract investment, technology and expertise while keeping strategic control over key assets 

→ The choice of model today will determine what Ukrainian cities will be like in 20 to 30 years

👉 Read the full expert column by Yevhen Kalinin

• Demining results

Source: Ministry of Economy, Environment and Agriculture of Ukraine

• EBRD launches first-of-its-kind investment protection mechanism against war damage 

The EBRD is partnering with PrivatBank and Raiffeisen Bank Ukraine on  the first of its kind Enterprise Security Enhancement (ESE) mechanism. ESE allows EBRD partner banks to grant partial debt relief to Ukrainian borrowers whose assets suffer direct, verified war damage. The EBRD compensates partner banks for the resulting credit loss, enabling businesses to continue operating and reinvesting rather than carrying the full liability of destroyed assets. The ESE pilot is being launched under the Bank’s PRS facilities with PrivatBank and RBU, approved in 2025. It will be limited in scope, with allocations of €6.8 million and €1.2 million, respectively.

→Read more

Source : EBRD

• EU4Recovery Phase 2 : €50 million for rebuilding Ukrainian communities

The European Union and the United Nations Development Programme (UNDP) have officially launched the second phase of the EU4Recovery initiative, with a budget of €50 million for 2026–2028.

This strategic partnership targets three priority areas:

• Decentralised social and medical services strengthening local health and social protection capacity

• Economic recovery to support for war-affected communities

• Social cohesion with a particular focus on veterans, youth, and people returning to their communities

→ Read more

Source : UNDP

• EIB to guide Ukraine on advancing priority infrastructure projects

Ukraine will receive guidance from the European Investment Bank (EIB) on accelerating the preparation of large-scale development projects and supporting the reconstruction of critical infrastructure such as road, energy and railway networks. The accord is part of the programme called Ukraine FIRST. The programme is a project-preparation initiative developed jointly by the EIB, the European Commission and the European Bank for Reconstruction and Development (EBRD), with over €40 million in funding to date.

→ Read more

Source : EIB

The security situation in Ukraine remains challenging but managed. It is crucial to understand that Russian strikes can occur across the entire country. We strongly recommend that you do not ignore air raid sirens and stay informed through official government channels.

Useful WhatsApp groups: UA Air Force, SPRAVDI, Ukraine.ua, Suspilne

French nationals can enter Ukraine without a visa for stays of up to 90 days.

Transport

With airspace closed since February 2022, the simplest option is to fly to a neighboring country and then reach the capital by train (from Chelm, Warsaw, or another city). Please note: demand for these trips is very high.

For train ticket reservations, it is strongly advised to book in advance:

●      In France: Use the SNCF Connect app to manage your travel to European hubs or airports.

●      In Poland: The PKP Intercity app is the go-to for long-distance travel. For regional connections or to compare bus and train options, the KOLEO app is also very efficient and intuitive.

●     In Ukraine: For specific journeys between Poland and Ukraine, use the official app of the Ukrainian railway company, Ukrzaliznytsia (available in English).

Taxi services in Ukraine

Urban transport apps work very well in major Ukrainian cities.

●      Bolt: Very widespread; it is often the fastest option with many available drivers.

●      Uklon: A reliable local Ukrainian app.

●     Uber: Also available in major cities like Kyiv or Lviv, though the fleet is sometimes less dense than Bolt's.

Daily life and restrictions

●      Curfew: A curfew is in effect throughout the country. In Kyiv, it runs from 00:00 to 05:00. During this interval, it is strictly forbidden to be on the street without a special permit.

●     Energy: Depending on the evolution of the situation, power outages are possible.

We recommend that you always carry your identity documents with you.

Business travel and insurance

For any business trip, it is mandatory to take out insurance that includes war risks. To determine which type of coverage meets your needs, we invite you to watch our dedicated webinar on this subject.

To define the insurance policy that is right for you, you can contact:

●      GEODESK

●     ATLAS RISK COVER

You can also review the replay of the webinar on insurance

Battery energy storage classified as critical infrastructure

On 21 May 2026, following a proposal of the Ministry of Energy, the Cabinet of Ministers amended the list of critical infrastructure sectors to include electricity energy storage facilities (battery storage stations). The decision is aimed at strengthening the protection of such facilities and the resilience of Ukraine's energy system amid continuing attacks on energy infrastructure.

The Ukraine Damages Register is now open to business claims

The Register of Damage for Ukraine (the “Register”) is the first element of the international compensation mechanism established to provide reparations for harm caused as a result of Russian aggression.On April 29, 2026, the Register fully opened claims submission for businesses

under the following categories:

• C1.1 – damage to or destruction of critical infrastructure;

• C1.2 – damage to or destruction of non-critical infrastructure;

• C3.1 – damage to, destruction of, or loss of assets.

Eligible claimants are businesses that suffered losses after 24 February 2022, on the territory of Ukraine within its internationally recognised borders, as a result of Russia's actions. The opening of these categories does not entail immediate compensation – however, any future compensation will be impossible without proper recording of damages in the Register.

The State Property Fund of Ukraine launches a public-private partnership for strategic state-owned objects

According to the announcement of the State Property Fund of Ukraine (SPFU), published in May 2026, the SPFU is launching a strategic direction of public-private partnership (PPP) for strategic state-owned objects. The proposed legal mechanism will allow restoring and developing state assets through private investment without losing state property. These are objects that are not subject to privatization and have strategic, social or infrastructural importance for the state. The initiative will create new opportunities for business to partner with the state on mutually beneficial terms, including for the reconstruction of Ukraine taking into account best international practices.

Source : Arzinger

Recently, the French-Ukrainian Chamber of Commerce and Industry organized a major conference entitled "Ukraine: When technologies accelerate reconstruction." The key message of the event is the following: we must not simply repair what has been destroyed, but build a new, more efficient, and more sustainable society.

Although the war is an undeniable crisis, it also acts as a "perfect storm" that allows the use of innovations to be taken to a whole new level.

Technology as the foundation: 

• Omni-use (military to civilian transformation): Frontline technologies are expanding to the civilian sector; drones are already being used for precision agriculture, organ delivery, and extinguishing complex fires.

• Robotization of logistics: Faced with a severe labor shortage, companies are automating their processes.

• Digital Twins: These virtual copies of infrastructure make it possible to manage facilities remotely, instantly detect failures, and significantly reduce maintenance costs.

• Cyber resilience: Digital infrastructure is much easier and faster to restore after bombings than physical buildings.

The Human Dimension: veterans and inclusion

• The company must adapt: Companies must change by avoiding paternalism, as veterans are looking for meaning in their work.

• Overcoming employers' fear: The biggest obstacle to employing defenders is the "silence" of companies, due to the fear of hiring veterans and the inability to formulate a proper rejection.

• Rapid retraining: Over 70% of veterans need to change professions. Companies are advised to create short-term paid internships and introductory training programs rather than expecting them to undergo long, traditional studies.

• Comprehensive accessibility: Services must become physically and digitally accessible. Furthermore, companies must implement a trauma-informed approach for the well-being of all employees who have experienced the war.

Main conclusion: A successful reconstruction is a shared responsibility for the next 30 years. The state, innovative companies, and the private sector must join forces to support the economy and the country's most valuable resource: its citizens.

Ci dessous les replay de la conférence :

Introduction by Natalia Denikeieva

Panel 1: Sectoral reconstruction: energy, infrastructure, cities

Panel 2: The human dimension: employment, veterans and inclusion

Joining the French-Ukrainian Chamber of Commerce means establishing yourself in Ukraine with a trusted local partner at the heart of a dynamic network of nearly 130 French and international companies already active in the market.

In a rapidly transforming environment, the CCIFU supports you in securing your approach, accelerating your development, and connecting you with the right contacts at the right time.

Each year, the Chamber organizes nearly 60 events: sectoral meetings, conferences, professional committees, and networking events. These are concrete opportunities to understand the market, share feedback, and develop business opportunities.

Concrete Benefits for Members:

✓ One day of Business Support Services offered to every new member

✓ Access to high-level meetings in a small-group format

✓ Integration into an active network of French companies already established (direct contacts, partnership opportunities, field reports)

✓ Preferential rates on the Let’s Rebuild Ukraine study

✓ Preferential rates with our partners (particularly in the hotel industry)

✓ Participation in sectoral committees (HR, agriculture, businesswomen, etc.)

✓ Increased visibility via our communication channels and events

Why Now?

The reconstruction of Ukraine is already underway. It is being structured, financed, and organized today.

The companies present now will be the ones that understand the market, build key relationships, and seize the most strategic opportunities.

Do not let this window of opportunity close.

DOWNLOAD THE MEMBERSHIP FORM