Actualités • Наш погляд на • Аналіз та дослідження • Асоціація
Newsletter #24 Reconstruction Ukraine - May 2025
May was marked by a series of significant developments for Ukraine. On May 23, the U.S.-Ukraine Investment Fund was officially launched, following a diplomatic note sent by U.S. Chargé d’Affaires a.i. in Ukraine, Julie S. Davis, to Ukraine’s Minister of Economy, Yuliia Svyrydenko.
At the same time, mid-May also witnessed the first direct talks between Ukrainian and Russian representatives since 2022. But as many expected, these talks didn’t lead to any real progress, especially while attacks on Ukrainian cities and infrastructure continue.
In this issue, we begin with an overview of two years of implementation of the state-run eVidnovlennia compensation program, highlighting key results and improvements made over the past year. We also examine the impact of the UNITED24 fundraising platform, now marking its third year of operation.
This edition also offers a curated overview of the latest developments shaping Ukraine’s recovery efforts, including:
Ukraine’s latest wave of business deregulation;
the launch of the digital catalogue of sustainable finance opportunities;
France’s contribution to ensure nuclear safety at the Chornobyl site;
new funding to support housing, SME financing, and infrastructure recovery from international partners, including the CEB, EBRD, and World Bank.
Special attention is given to the role of the private sector. This issue explores key investment initiatives such as:
the IFC and Astarta project to construct Ukraine’s first soy protein concentrate facility;
Google’s renewed support for Ukrainian startups through its Ukraine Support Fund;
new financing for the reconstruction of Velta’s titanium mining and processing facility.
Enjoy the read!
Ukraine Reconstruction: Key Figures
eVidnovlennia
For the past two years, Ukraine has been implementing eVidnovlennia, a state-run compensation program for damaged and destroyed housing caused by the war. Launched in 2023, the initiative provides monetary support for both current and capital repairs, as well as housing certificates that allow affected individuals to purchase new homes in cases of total destruction.
Key results over two years:
- 100,000 Ukrainians have received funding for home repairs or housing certificates.
- 9,600 individuals have already purchased new homes using the certificates.
- 93,000 applicants were approved for compensation for damaged property, totaling 9.8 billion UAH (approx. €208 million).
- 8.9 billion UAH (approx. €189 million) have already been disbursed.
- 1.5 million UAH (approx. €31,000), is the average compensation for destroyed housing, while rebuilding on private land averages 2.2 million UAH (approx. €46,000).
Developments in the past year
The program continues to evolve and expand. Key updates from the past year include:
- A dedicated sub-program for internally displaced persons (IDPs) who lost their only home.
- 15 billion UAH (approx. €319 million) was reallocated to this sub-program.
- 4,000 housing certificates have been used in the first four months of implementation.
- The possibility to apply for compensation for housing located in active combat zones.
- Housing certificates can now be used as a down payment under the state’s eOselia affordable housing mortgage program.
- The beginning of the practical implementation of monetary compensation for reconstruction on one's own land plot, available to owners of destroyed private houses.
- The first 300 families received initial payments totaling over 408 million UAH (approx. €8.7 million).
Over the past two years, eVidnovlennia has become a cornerstone of Ukraine’s housing recovery policy, offering targeted, flexible, and accessible support to those affected by the war.
Source: Ministry for Development of Communities and Territories of Ukraine
UNITED24
UNITED24, the official fundraising platform of Ukraine, celebrates its anniversary this month following its launch by the President of Ukraine on May 5, 2022. UNITED24 enables individuals from around the world to make charitable contributions to support Ukraine with just one click. A distinguishing feature of the platform is its access to up-to-date information on Ukraine’s current needs, allowing donations to be allocated toward identified priorities in procurement and recovery efforts.
Key results:
- $1.4 billion has been raised over the three years of UNITED24's operation.
- Nearly $400 million was raised in 2024 alone.
- Donors from 137 countries.
- 26 ambassadors, both Ukrainian and international, actively support the platform, including Andriy Shevchenko, Imagine Dragons, Mark Hamill, Timothy Snyder, Elina Svitolina, and others.
Sources: Ministry of Digital Transformation of Ukraine, Ukrinform, UNITED24.
Key developments for Ukraine’s Reconstruction
Ukraine is planning to launch Green Platform to expand access to sustainable finance
The Ministry of Economy of Ukraine, in partnership with the DiXi Group think tank and the Green Transition Office, has begun work on the development of the Green Platform - a digital catalogue of available green financing programs.
Purpose of the Platform
The platform is designed for businesses, municipal and state-owned enterprises and local communities. Its main goal is to help these stakeholders identify:
- current opportunities for implementing energy-efficient solutions,
- resource conservation initiatives,
- sustainable modernisation projects.
Features of the Green Platform
The Green Platform will be hosted on the "Made in Ukraine" website. It will feature:
- a list of credit, grant, and investment programs;
- personalised search tools tailored to the needs of businesses and communities;
- information on green transformation, case studies of implemented projects, and practical resources to help new users get started.
Implementation and criteria
A pilot version of the platform is expected to launch soon.
All programs that align with the principles of green finance will be eligible for inclusion in the catalogue. This inclusive approach aims to:
- enhance access to financial instruments for private enterprises;
- empower municipalities seeking sustainable development solutions.
To submit a program for inclusion, applicants must complete a form available via the platform’s website.
The launch of the Green Platform marks a strategic step in advancing Ukraine’s ecological and economic resilience. The initiators emphasize that Ukraine’s environmental and economic transformation cannot rely on government action alone, it requires broad engagement from the financial sector and strong backing from international donors.
Source: Ministry of Economy of Ukraine
Ukrainian government continues deregulation by eliminating outdated business requirements
The Cabinet of Ministers of Ukraine is continuing its deregulation efforts by eliminating 63 outdated and duplicative regulatory requirements for businesses. It also plans to remove administrative penalties for violations of rules that are no longer legally valid.
This step is expected to save businesses around 400 million UAH (8.5 million euros).
The latest deregulation package was developed based on proposals from ministries, businesses and experts with input from relevant organisations and analytical centers.
Key proposals for deregulation
- 23 regulatory tools in agriculture, forestry, hunting, fisheries, and wildlife protection;
- 18 in water and air protection;
- 8 in energy, alternative fuels, construction, and explosive materials;
- 12 in foreign economic activity, investment, innovation, culture, and education;
- 2 in healthcare
This move is part of a broader effort to streamline business regulation, reduce administrative burdens, and foster a more favorable environment for economic growth.
Source: Ministry of Economy of Ukraine
International Benchmark
France contributes €10 million to EBRD-led Chornobyl recovery efforts
The European Bank for Reconstruction and Development (EBRD) has secured a €10 million contribution to the International Chernobyl Cooperation Account (ICCA) from France. This funding underscores France’s continued commitment to nuclear safety, decommissioning, and environmental remediation at the Chornobyl Nuclear Power Plant and across Ukraine.
The pledge agreement was signed 14 May 2025 by Pierre Heilbronn, Special Envoy of the French President for Ukraine’s Relief and Reconstruction, and Mark Bowman, the EBRD Vice President for Policy and Partnerships.
Use of funds
The French contribution will be used to support the restoration of the key functions of the New Safe Confinement (NSC) following the Russian drone attack in February 2025. That strike rendered systems designed to ensure the NSC’s 100-year lifespan non-operational and significantly increased the risk of further deterioration in the absence of swift emergency repairs.
- Short-term priorities: The EBRD will first fund the repair of the external cladding to prevent further water ingress.
- Long-term objectives: Work will be carried out to restore the core functionality of the facility to minimise the release of further contaminated dust into the environment and provide the conditions for the safe deconstruction of the old shelter and destroyed reactor in the future.
The ICCA was established by the EBRD in November 2020 at the request of the Ukrainian government. It was set up as a multilateral fund to support the development of a comprehensive plan for Chornobyl. The EBRD manages the ICCA, which currently holds some €25 million in donor funds. These contributions are essential to stop further environmental damage and to keep the Chornobyl site safe in the long term.
Source: EBRD
Ukraine and Council of Europe Development Bank sign €50 million loan agreement to support housing for internally displaced persons
The Government of Ukraine and the Council of Europe Development Bank (CEB) have signed a €50 million loan agreement to provide housing for Internally Displaced Persons (IDPs). The agreement was signed by Deputy Prime Minister for Restoration – Minister for the Development of Communities and Territories of Ukraine, Oleksii Kuleba, and CEB Governor Carlo Monticelli.
Project overview
The new project will provide more than 1,100 preferential mortgage loans for IDP families. The mortgage terms include:
- a fixed 3% interest rate,
- a repayment period of up to 30 years,
- application via the Diia portal.
The program has already shown its attractiveness, with more than 35,000 families currently on the candidate list.
Future cooperation between the CEB and Ukraine will involve dedicated housing loan programs for various groups affected by the war, including war veterans.
Previous CEB support
This is the CEB’s second loan to support Ukraine’s housing sector. The initial €100 million loan, signed in 2024, supported compensation for war-damaged homes through a housing certificate program. To date, under that scheme, over 7,600 Ukrainians have already received housing. The CEB will continue supporting the compensation mechanism through already approved additional financing of €100 million.
Source: CEB, Ministry for Development of Communities and Territories of Ukraine
EBRD expands new risk-sharing facility to ProCredit Bank Ukraine
The European Bank for Reconstruction and Development (EBRD) has provided a new unfunded portfolio risk-sharing facility to ProCredit Bank Ukraine. This initiative is aimed at expanding access to financing for Ukrainian businesses operating in wartime conditions.
Overview
The EBRD’s facility will partially cover credit risk on €70 million in new loans issued by PCBU enabling the bank to extend vital financing to clients across the country. Special focus will be given to businesses operating in key sectors of the economy, including:
- agribusiness,
- manufacturing,
- pharmaceuticals,
- transport and logistics.
Background
This is the fifth portfolio risk-sharing facility that the EBRD has provided to PCBU since the start of Russia’s full-scale invasion, building on the success of previous instruments. Overall, the EBRD has unlocked more than €2 billion of financing for Ukrainian borrowers through its portfolio risk-sharing facilities for partner banks in Ukraine.
Support for MSME
Up to 20 % of all sub loans covered by the EBRD’s guarantee will support the financing of long-term capital investments by micro, small and medium-sized enterprises (MSMEs), helping them to upgrade their technology and equipment in line with European Union (EU) standards under the EU4Business-EBRD Credit Line. Eligible sub borrowers will also benefit from EU-funded technical assistance and grant support.
Additional incentives
Additional investment incentives will be available to borrowers whose assets have been destroyed, lost or relocated due to the war, as well as those that are actively involved in reintegrating veterans into the workforce.
EU support and grant funding
The EBRD has already allocated €75.4 million of EU grant support to Ukrainian MSMEs under the EU4Business-EBRD Credit Line, of which €5.8 million has been issued to projects through PCBU. The EBRD facility will be backed by first-loss risk cover funded by the European Union under its Ukraine Investment Framework.
This latest initiative reflects the EBRD’s ongoing commitment to maintaining financial flows to the real economy during wartime and advancing Ukraine’s recovery.
Source: EBRD, ProCredit Bank Ukraine
World Bank allocates $84 million under the HOPE Project to restore housing in Ukraine
Ukraine will receive an additional USD 84 million in funding from the World Bank under the “Housing Repair for People’s Empowerment project” (HOPE). The funds will be directed to restoring housing damaged by Russian aggression, under the eVidnovlennia program.
The decision was formally approved by the World Bank’s Board of Executive Directors on May 9.
On May 15, the Additional Financing Agreement was signed between Ukraine and the World Bank: on behalf of Ukraine – by Deputy Prime Minister for Restoration of Ukraine - Minister for Development of Communities and Territories of Ukraine Oleksii Kuleba, on behalf of the World Bank – by Regional Country Director for Eastern Europe Bob Saum.
Objectives
It is expected that this funding will help over 25,000 households repair their homes.
The HOPE project is aimed at addressing urgent and critical repair needs for partially damaged individual and multi-apartment residential buildings in territorial communities under the control of the Government of Ukraine, which have suffered due to the Russian aggression on Ukrainian territory.
Since the beginning of the HOPE project, over 87,000 households have already received compensation for damaged property.
Source: Ministry for Development of Communities and Territories of Ukraine
Focus on the private sector
IFC and Astarta to launch Ukraine’s first soy protein concentrate facility with $40 million investment
On May 14, the International Finance Corporation (IFC) and Ukrainian agro-industrial holding Astarta signed an investment agreement in Kyiv to construct the first soy protein concentrate plant in Ukraine. This landmark project aims to boost the country’s value-added agricultural exports and support economic resilience amid ongoing challenges.
Investment structure
The investment is in line with an up to $80 million financing package approved by IFC’s Board of Directors on April 1, 2025. The total confirmed financing for the project currently stands at $40 million, comprising:
- $27 million in direct lending from IFC;
- $13 million in concessional financing provided by the Government of the Netherlands.
IFC’s financing is backed by guarantees from the European Commission’s Ukraine Investment Framework, and the government of the Netherlands in support of IFC’s Economic Resilience Action (ERA) Program for Ukraine.
Projected expected economic impact
The new facility is expected to deliver significant economic benefits. Key anticipated outcomes include:
- $680 million in annual foreign exchange revenue;
- $116.5 million annual contribution to the economy, including tax revenues;
- Creation of approximately 3,000 direct and indirect jobs;
- Expansion of supply networks for local farmers;
- Production of soy molasses for use in biogas facilities, supporting green energy initiatives.
Strategic significance
According to Alfonso García Mora, IFC Vice President for Europe, Latin America, and the Caribbean, the project will help Ukraine increase its production of high-value agricultural products and move up the value chain.
This investment marks a significant milestone in Ukraine's agri-food sector, reflecting both international confidence in the country’s economic potential and a strategic shift toward higher value-added production.
Source: IFC, Ministry for Development of Communities and Territories of Ukraine, Astarta
Google for startups announces 30 new recipients of the Google for Startups Ukraine Support Fund
Google has announced a new group of 30 Ukrainian startups selected to receive funding from the Google for Startups Ukraine Support Fund.
These companies are making remarkable technological advances in fields such as:
- artificial intelligence,
- quantum computing,
- education,
- healthcare.
About the Fund
The Google for Startups Ukraine Support Fund is a $10 million initiative launched to support Ukrainian entrepreneurs amid the ongoing war and contribute to the country’s long-term economic recovery. The fund is administered by 1991 Accelerator, Ukraine’s first and largest startup accelerator.
What the startups receive
Each selected startup will receive:
- Up to $100,000 in equity-free funding;
- Mentorship and strategic guidance from Google experts;
- Access to Google’s suite of products;
- Up to $350,000 in additional Google Cloud credits.
By backing startups in cutting-edge sectors, the fund aims not only to fuel technological innovation but also to help Ukraine retain and empower its talent pool.
Source: Google
Traxys group provides $2 million in pre-export financing to Ukrainian company Velta Holding
The multinational trading group Traxys Group has extended $2 million in pre-export financing to Velta Holding, a Ukrainian company specialising in titanium raw material production.
Purpose of the financing
The funds will be used to support the reconstruction and capital overhaul of Velta’s titanium mining and processing facility based at the Byrzulivske ilmenite deposit in Ukraine’s Kirovohrad region. This investment aims to restore and modernize key industrial infrastructure that has faced delays due to the war.
Strategic long-term partnership
Traxys, a global leader in the trading of metals and minerals, has been a strategic partner of Velta for over 10 years. This longstanding collaboration has enabled Velta to establish a strong foothold in the U.S. market and become a key supplier of titanium feedstock to one of the largest titanium dioxide producers in North America.
Andriy Brodskyy, President of Velta Holding, emphasized that this financing is not only a resource for development, but also a clear signal of international trust in Ukrainian companies.
Amid ongoing instability, this deal reflects the continued confidence of global industry leaders in Ukraine’s industrial potential.
Source: Velta
CCI France Ukraine initiatives
CCIFU unveils tool to support businesses in Ukraine's reconstruction
As Ukraine embarks on a concrete phase of reconstructing its territories and infrastructure, the mobilization of European and French companies has become more crucial than ever. This mobilization requires reliable and field-adapted tools to effectively support reconstruction efforts.
LET'S REBUILD UKRAINE: an Innovative tool
In this spirit, the Franco-Ukrainian Chamber of Commerce and Industry (CCIFU) has developed LET'S REBUILD UKRAINE, a study aimed at facilitating and securing the development of European companies in Ukraine's building and construction sector. Despite the war, the Ukrainian economy demonstrates remarkable resilience, with projected growth of 5% in 2024. Local sector actors will play a key role in reconstruction projects, with priority access to markets and financing. Therefore, it is essential for European companies to connect with these actors today.
Benefits of LET'S REBUILD UKRAINE
- Updated Mapping: Over 250 private Ukrainian companies are listed, covering the entire value chain, from manufacturers to construction companies.
- Tool for Suppliers and Investors: Designed for suppliers of products and solutions, investors, or any company seeking local partners.
- Gateway to the Ukrainian Market: A concrete solution for accessing the Ukrainian market, even in a context where on-site prospecting remains challenging.
Our ambition
Our goal is to save time and increase visibility for European companies by providing a clear vision and qualified contacts. We would be delighted to present this tool in more detail and discuss how it can address your challenges or those of your partners.
For any questions or to schedule a discussion, please feel free to contact: Pascal Hieronimus phieronimus(@)ccifu.com.ua
Discover the first pages of the study HERE
REPLAY Webinar - War and Economy: How can Ukraine rebuild itself?
As Ukraine enters its fourth year of full-scale war, it continues to demonstrate remarkable economic resilience. However, this recovery is now being tested by ongoing Russian attacks, geopolitical uncertainties particularly regarding the future of U.S. foreign policy and domestic challenges such as power outages, taxation, and the investment climate.
In this context, the signing of the Economic Partnership Agreement between Ukraine and the United States on April 30, 2025, which provides for the creation of a Reconstruction Investment Fund, marks a major turning point.
This webinar featured analysis by Nicolas Bouzou, economist and essayist, author of La civilisation de la peur (2024) and numerous works on growth, economic transformation, and the geopolitical challenges of the 21st century. It offered a structured perspective on concrete recovery levers, the effectiveness of sanctions, and the conditions necessary for sustainable growth during wartime.
Speaker: Nicolas Bouzou, economist and essayist
Moderator: Bertrand Barrier, President of the French-Ukrainian Chamber of Commerce and Industry
Together, let’s support the UNBROKEN Center alongside Danone
At the initiative of one of our members, Danone, we are launching a fundraising campaign in support of the UNBROKEN National Rehabilitation Center in Lviv.
UNBROKEN is a project that the Franco-Ukrainian Chamber of Commerce and Industry (CCIFU) has been actively supporting for the past two years. It embodies Ukraine’s commitment to providing comprehensive medical, psychological, and social care to war-wounded individuals, both military and civilian. Its new rehabilitation unit, specializing in severe spinal injuries, opened in November 2024 and has already treated over 50 patients.
Today, the center needs our help to complete construction and purchase the specialized equipment required for this unit. Together with Danone, let’s rally our business community to provide meaningful and lasting support.
A donation certificate combining all donations will be officially presented to UNBROKEN during our major charity evening on June 26, in the presence of donors, or on their behalf if they are unable to attend.
If your company - or you personally - would like to contribute to this initiative, don't hesitate to get in touch with Natalia Demianchuk at [ndemianchuk(@)ccifu.com.ua] so we can include your donation in the total amount.
Every contribution matters. Together, let’s support those who are rebuilding their lives.
Podcast
We offer you an in-depth look at the key issues of security, defense, and innovation in Ukraine, alongside Thomas Moreau, founder of Lafayette Risk Intelligence and representative of GICAT in Ukraine.
On the agenda:
- With over fifteen years of experience in Ukraine, Thomas Moreau offers his perspective on the evolution of the country’s security sector, the needs of French companies operating on the ground and the outlook for Franco-Ukrainian cooperation.
- GICAT (the French defense and security industry group for land and air-land sectors) is strengthening its presence in Ukraine with the opening of a local representative office, a strong commitment to building long-term partnerships.
- Equipment maintenance, Franco-Ukrainian co-production, innovations in drones, AI, cybersecurity. These are key topics at the heart of a strategic collaboration in response to today’s challenges.
- Thomas also previews the upcoming France-Ukraine Innovation Defense Forum, set for July, which is a key event for shaping the future of industrial and security cooperation between our two countries.
