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Ukraine Reconstruction Market Brief - September 2026

EDITORIAL — SEPTEMBER 2026

Russian attacks against Ukraine continue, regularly targeting civilian, energy and logistics infrastructure. Yet, even in this context, reconstruction is moving forward. The country’s considerable rehabilitation and modernisation needs are giving rise to new projects, new financing mechanisms and, with them, new opportunities for international companies.

This new edition of the Ukraine Reconstruction Market Brief provides an overview of some of these developments.

The Open Funding Opportunities section highlights several opportunities currently available to Ukraine’s agricultural sector, including grants for medium-sized agricultural companies and related businesses affected by the war. It also features a new funding programme for Ukrainian developers of prosthetic technologies.

This edition’s Green Recovery section focuses on one of the key areas of Ukraine’s future modernisation: water infrastructure. Yevhen Kalinin, CEO of Veolia Ukraine, shares his perspective on the Ukrainian water supply and wastewater management market, and explains why private capital, technology partners and public-private partnerships will be essential to its development.

In Reconstruction News, we look at the latest economic forecasts for Ukraine, as well as new instruments designed to mitigate war-related risks for businesses.

Finally, our Regional Focus takes us to Ternopil, a region with well-developed transport and industrial infrastructure, where several projects are already taking shape in the fields of energy transition, water supply and wastewater management.

Together, these developments are further evidence that, despite the war, the Ukraine of tomorrow is already being built today.

Enjoy the read!

1. OPEN FUNDING

Prosper Global (Mercy Corps): Ukraine Agricultural Support Program

The international humanitarian organization Prosper Global, with funding from Howard G. Buffett Foundation, has launched the Ukraine Agricultural Support Program. The purpose of this program is to help the affected local families and those who were forced to displace due to the war to recover their agricultural activities and overcome the consequences of the war as well as farmers and businesses closely related to agriculture.

The programme provides grants of up to $150,000 to medium-sized agricultural enterprises and related businesses affected by the war. 

Deadline: 31 October 2026 

Eligible regions: Dnipropetrovsk, Donetsk, Zaporizhzhia, Kirovohrad, Mykolaiv, Poltava, Sumy, Kharkiv, Kherson and Chernihiv oblasts, excluding areas with active hostilities.

Eligible applicants: Registered agricultural businesses (sole proprietors, LLCs, joint-stock companies, etc.) operating in the eligible regions. Priority is given to enterprises in de-occupied or vulnerable areas with positive social impact.

What the grant covers: Financial support under the programme is directed towards the restoration of the material and technical infrastructure of agricultural companies, in particular the replacement of destroyed or damaged machinery, attachments, equipment, buildings and other key elements of their business operations.

Key conditions:

• Co-financing of up to 50% of the requested amount is required

• Applicants must document the war's impact on their operations

• Register on the programme’s website, after which you will need to answer questions about the business’s operations, the impact of the war and the rationale for the funding request

Learn more

Source: Diia Business, Prosper Global

Funding programme for prosthetics technologies

The Ukrainian Startup Fund, together with the Brave1 cluster and with government support is launching a new grant programme on the development of prosthetic technologies for Ukrainian companies.

Funding: Up to UAH 8 million per developer, depending on the stage of development:

• Up to UAH 2 million: Idea testing and research.
• Up to UAH 4 million: Creation of a laboratory sample and testing (engineering and user testing).
• Up to UAH 8 million: Prototyping and preparation for certification.

Target projects: Prosthetic systems (bionic, electronic, mechanical) for upper and lower limbs, components (electronics, batteries), and customisation technologies (3D printing).

Objective: Develop Ukrainian production, reduce dependence on imports, and adapt prosthetics to the real needs of amputees through user testing funded by the programme.

Apply

Source: Ministry of Digital Transformation of Ukraine

2. Act Now

Regional Focus: Ternopil community

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 advantages of the Ternopil community

Ternopil has a convenient geographical location and developed transport infrastructure. The community is located at the intersection of two European automobile routes, including the Brest (France) – Nuremberg (Germany) – Prague (Czech Republic) – Ternopil (Ukraine) – Dnipro (Ukraine) route. 

The community remains stable and open despite the challenges of the war. According to the Investment Passport, businesses continue to operate, investment and infrastructure projects are being implemented, and new international partners are joining cooperation. Capital investment reached UAH 4.6 billion in both 2024 and 2025, while the community continues to invest in infrastructure development and energy saving, including in partnership with international organisations.

Key figures

Key advantages

1) Strategic transport connections

Ternopil is located at the intersection of two European automobile routes. The city's railway junction provides daily domestic and international passenger connections. More than 30 pairs of trains pass through Ternopil, while the Ternopil cargo station can service 65.2 thousand tonnes of cargo per day. 

2) Labour and education potential

The community has more than 118,000 employed people. Its education network includes 5 universities, 5 institutions of professional pre-university education and 6 institutions of professional education, with more than 30,000 students.

3) Industrial capacity

Ternopil community has more than 110 industrial enterprises and more than 1,000 industrial SMEs, while industrial output sold reached UAH 27.5 billion in 2025. Products are sold both on the domestic market and for export.

4) International cooperation and investment experience

FDI from 29 countries has been attracted to 70 enterprises in Ternopil. The community cooperates with 25 municipalities in Europe and other countries.

Priority Projects and Funding Needs

Energy & Energy Efficiency

Ternopil is developing projects focused on decentralised generation, energy resilience and the modernisation of district heating:

• Ternopil Energy Park — €50 million: a proposed integrated system combining 15 MW of solar generation, 44 MW of wind generation and 65 MW of battery energy storage, with an expected generation capacity of 121 GWh annually.
• Energy island / microgrid — approx. $15 million: a 44 MW solution combining cogeneration, solar generation, BESS, automation and energy-management systems, designed to operate in autonomous mode.
• Heat pumps for district heating — €8 million: modernisation of four boiler houses and installation of heat pumps in eight boiler rooms. The project targets a 40% reduction in natural-gas consumption.
• Solar power plants — €3 million: rooftop and ground-mounted solar installations on social infrastructure facilities.

Water & Environment

The “Green Energy for Clean Water” project offers a combined energy and circular-economy opportunity, with an estimated investment requirement of €22 million and a stated seven-year payback period. It includes a 5 MW solar plant, recovery of phosphorus compounds from wastewater and a biogas facility with a 0.8 MW gas-turbine power plant.

Healthcare

The proposed Centre for Rehabilitation and Restorative Treatment represents a €6 million investment opportunity. Located on a 4.8-hectare site owned by Ternopil City Council, the project is under construction and is designed to serve approximately 2,350 people annually, combining healthcare infrastructure with potential medical-tourism development.

Why should French businesses invest in Ternopil?

For French companies, Ternopil offers a combination of EU-facing logistics, industrial capacity and clearly identified recovery needs.

The opportunity is particularly relevant for companies working in energy transition, water and wastewater management, environmental technologies, urban infrastructure, engineering, mobility and healthcare. The community's international track record is another practical entry point. Foreign direct investment has already reached 70 local enterprises from 29 countries, while international cooperation includes municipal partnerships and projects financed with international financial institutions. 

Investment Passport of Ternopil 

Contact 

Association Presentation : Ukraine2Power

Ukraine2Power is a Ukrainian non-governmental organization (NGO) created in response to Russia's attacks on Ukraine's energy system, which caused severe blackouts and energy disruptions.

Mission: Provides emergency energy support to keep essential facilities such as hospitals, schools, and kindergartens operational during blackouts. The NGO focuses on helping communities rebuild through decentralized, clean, and safe energy solutions to promote long-term energy resilience.

Key projects:

• Delivered 100+ mobile charging systems to hospitals, schools, and railway teams across Ukraine.

• Built hybrid solar power plants to secure hospital operations during power outages, such as the 51 kW solar plant at Rozhniativ Hospital.

• Installed battery storage and solar panels in schools, to keep lights and heating on during blackouts.

Why are we highlighting this initiative?

The reconstruction of Ukraine does not rely solely on large-scale infrastructure projects. 

By highlighting organizations like Ukraine2Power, the CCIFU aims to build bridges between humanitarian commitment and corporate mobilization. Partnering with this type of organization means taking concrete action today, while contributing to the overall effort of resilience and national reconstruction.

Contact: Nataliia Fiebrig: Co-Founder and CEO

 Website

4.  GREEN RECOVERY: AN EXPERT'S VIEW

Water as the Next Major Market of Ukraine’s Recovery: Why Private Capital Will Be Critically Important

Yevhen Kalinin, CEO of Veolia Ukraine

Ukraine’s recovery has long ceased to be merely a matter of repairing destroyed buildings and infrastructure.  It also requires the modernisation of systems that have operated for decades with insufficient investment. Water supply and wastewater services are among the clearest examples.  A modern water supply system includes water treatment, wastewater collection, wastewater treatment, energy efficiency, automation, quality control and digital management. 

Ukrainian communities will have to seek not only grant funding, but also long-term private capital, technology partners and public-private partnership models. 

The new role of communities

In 2026, an important regulatory change took place in the sector. Law No. 4777-IX transferred, for the period of martial law and for 12 months after its termination, the authority to set tariffs for centralised water supply and wastewater services to local self-government bodies. 

By summer 2026, several communities moved from politically convenient rates to economically justified tariffs: Vinnytsia: +216% (to UAH 81.01/m³); Lutsk: +137% (to UAH 67.42/m³); Zhytomyr: +119% (to UAH 82.23/m³); Dnipro: increased to UAH 81.92/m³.

Change requires not only political will, but also project managers

For an investor this is both an opportunity and a risk:

• An opportunity - because decisions on the development of the enterprise become closer to the specific community.
• A risk - because the investment attractiveness of a water utility will now largely depend on the ability of local authorities to ensure a predictable tariff policy, financial discipline of the enterprise and long-term rules of the game.

A major challenge is not only finding money, but preparing projects that international banks and private investors can finance. Many small municipal enterprises lack specialists. 

Therefore, another market of the coming years will be not only construction, but also the preparation of infrastructure projects. This creates opportunities for engineering firms, project developers, financial and legal advisers, and professional operators that can take projects from concept to financing and implementation.

What this means for French business

The Ukrainian water market offers opportunities beyond equipment supply, including:

• water and wastewater treatment;
• energy efficiency and recovery;
• water reuse and resource management;
• sludge and waste management;
• digitalisation of utilities;
• long-term operation and PPP projects.

For Ukraine this means access to technologies and competencies. For the investor - the opportunity to create a long-term presence in the market.

Read the full article

5.  Press review & key figures

On September 24, the EBRD published its updated Regional Economic Prospects report analyzing Ukraine's economic trajectory. The revised outlook is more cautious than the June forecast, reflecting the impact of intensified Russian attacks on infrastructure and the renewed blockade of Black Sea ports:

• 1.5% real GDP growth in 2026, revised down from the June 2026 forecast of 2.2%.
• 2.5% projected GDP growth in 2027, a 1.5 percentage point reduction compared to the June outlook.
• 7.7% inflation rate as of July 2026.
• 50–60% expected drop in grain and oilseed exports in the second half of 2026 resulting from the renewed maritime blockade.

Beyond physical damage and export bottlenecks, economic recovery is also constrained by internal demographic pressures. In its September review, the National Bank of Ukraine (NBU) highlights the human toll of the prolonged war, noting that labor shortages remain the primary structural challenge for local businesses:

• Workforce deficit remains the #1 challenge for Ukrainian enterprises, cited by 66% of surveyed businesses in July (down slightly from 71% in June). 

• According to the State Border Guard Service, net outflows from Ukraine reached 223,000 people between January and July 2026. It is 6.7% lower than during the same period last year.

• UN data indicates that nearly half of surveyed Ukrainians abroad (47%) are now fully or largely able to meet their basic needs. The share of displaced citizens planning to return once the war ends stands at 49%, down from 61% in 2024 and 83% in 2022.

Despite these operational and labor headwinds, Ukraine’s macro-financial stability remains firmly anchored by international partners. Updated statistics from the Ministry of Finance of Ukraine:

• $38.3 billion in 2026 state budget financing (as of August 25, 2026): The largest funding sources are the European Union ($16.37 billion), G7 ERA loans ($9.71 billion), domestic government bonds ($7.82 billion), and the IMF ($2.2 billion).

• $198.1 billion in total international support (2022–2026).

Source : EBRD, National Bank of Ukraine, Ministry of Finance of Ukraine

• The Government has expanded the war risk insurance programme for businesses and simplified the process for obtaining compensation

The Government has expanded the existing war risk insurance programme for businesses and simplified the mechanisms for obtaining compensation.

In particular, the following changes have been introduced:

1. Kyiv and the Kyiv region have been included in the list of high-risk territories.

2. The list of eligible property for which compensation can be claimed in the event of damage or destruction has been expanded to include fuel as well as vehicles and equipment used for its transportation and storage.

3. The maximum insurance premium compensation has been increased from UAH 3 million to UAH 5 million per year per enterprise. Additionally, this mechanism now extends to leased property, and the requirements for insurance contracts have been simplified.

Source: Cabinet of Ministers of Ukraine

• EU approves nearly €3 billion for Ukraine under the Ukraine Facility

Ukraine will soon receive nearly €3 billion, following the Council’s approval of the eighth regular disbursement under the EU's Ukraine Facility. Nearly €800 million of this will be provided for the first time from the Ukraine Support Loan.

The payment reflects Ukraine’s successful completion of ten target steps. Ukraine has met 84 of the 95 target steps required under the Plan to date. Funding under the Ukraine Facility is designed to bolster Ukraine’s macro-financial stability, recovery and modernisation, keep its public administration running, and support its reform efforts.

The Council also amended the Ukraine Plan to include a welcome voluntary financial contribution from Norway of NOK 1 000 000 000 (approximately € 92 million) in non-repayable support. 

Source: European Council

 6. TRAVEL ADVICE

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.

Tip: To track alerts, manage power outage schedules, or locate the nearest shelter, download the Kyiv Digital app. It is available in English and allows you to register with an international phone number.

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 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 01:00 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 find a company to assist you with security-related matters among our members:

•  Lafayette Risk Intelligence

• GEOS Groupe ADIT
• Amarante International

You can also watch the replay of the webinar dedicated to security.

7.BUSINESS CORNER - Legal advice

Public investment management and PPP preparation streamlined

On August 13, 2026, the Cabinet of Ministers adopted Resolution No. 1051, prepared jointly with the Ministry of Economy, the PPP Agency, and the World Bank. Among other things, this decision streamlines and shortens preparation stages for public investment projects (PIPs) and PPP/concession initiatives while standardizing assessment criteria in accordance with the international "5 Case Model". Feasibility evaluations for PPPs and concessions are now directly integrated into sectoral assessments and the national public investment framework, with all findings published transparently in the DREAM ecosystem.

Energy: Regulatory framework for flexible grid connections

On August 11, 2026, the energy regulator (NEURC) adopted Resolutions Nos. 1354–1358, comprehensively updating grid connection, metering, and tariff rules. A key development is the formal introduction of flexible grid connection: where network capacity is constrained, customers can connect using non-guaranteed capacity subject to operational curtailment based on network conditions. To incentivize this mechanism, a reduced coefficient of 0.3 applies to the non-guaranteed capacity component when calculating connection fees.

Updated rules for renewable energy support quota auctions

On August 13, 2026, the Government approved Resolution No. 1010, updating auction procedures for alternative energy producers. In addition to a bank guarantee, auction participants and winners may use financial security in the form of a security deposit, including through an escrow account. A winner must submit connection or capacity reservation documents within 12 months after entering into the service agreement. The commissioning period is 18 months for solar facilities, 36 months for facilities using other types of alternative energy sources and 42 months for the relevant agreements entered into during martial law. Separate rules are introduced for auctions for solar generation facilities combined with energy storage facilities.

Source: Arzinger

8. WHY JOIN THE CCIFU

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