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[Translate to Ukrainien:] Newsletter #27 Reconstruction Ukraine - Septembre 2025
As autumn begins, we’re back with a fresh look at the key events of September. It has been a particularly difficult month: Russian attacks on Ukraine have continued, bringing new losses and destruction. At the same time, provocations have spread beyond Ukraine’s borders, once again reminding us that the threat is shared across Europe.
Against this backdrop, we turn first to Ukraine’s progress in demining. With nearly a quarter of the country’s territory potentially mined, humanitarian demining remains more urgent than ever. We review the current state of efforts, the scale of international support, and the pressing need to accelerate progress.
On the international stage, notable highlights include:
- new long-term recovery programmes for Ukraine launched by Denmark and the Czech Republic;
- significant financing initiatives from the EBRD and IFC to sustain Ukrainian businesses.
We also examine the private sector’s growing role in driving recovery:
- the launch of the Ukraine Phoenix Tech Fund to support Ukrainian startups;
- record levels of investment in defense technology.
We hope you will find this edition insightful and valuable.
Enjoy the read!
Ukraine Reconstruction: Key Figures
Demining efforts
The issue of demining Ukrainian territory remains one of the most critical challenges for the country’s recovery. To assess the current state of humanitarian demining, the Accounting Chamber of Ukraine conducted an audit titled “Humanitarian demining of agricultural land in Ukraine: restoring safety and agricultural production”. The audit examined the existing demining strategy, which still holds significant room for improvement.
Scale of contamination:
- 174,000 km² (17.4 million hectares) affected by intense hostilities
- 139,000 km² (13.9 million hectares) potentially mined (approx. 23% of Ukraine’s territory)
- 9.85 million hectares of agricultural land across 10 regions remain unsafe (almost 25% of all agricultural land in Ukraine).
Human impact:
- 6.4 million Ukrainians live in areas potentially contaminated with explosive ordnance
Demining progress (2022 – July 2025):
- 7,750 hectares of farmland cleared according to national humanitarian demining standards (just 0.08% of contaminated agricultural land)
- 403,000 hectares returned to farming under simplified procedures
- At current pace, full demining of agricultural land would take approx. 83 years
Economic consequences:
- $11 billion - annual GDP losses (according to Tony Blair Institute)
- $1.1 billion - foregone tax revenues (according to World Bank)
- $4.3 billion - annual drop in agricultural exports
International support and estimated cost of demining:
- Over $1 billion in donor assistance for demining (2022–2028), combining disbursed and pledged funds
- Major donors: USA, Switzerland, EU, Japan, Norway, Howard G. Buffett Foundation, Germany, Canada, Netherlands, Sweden
- $29.8 billion - estimated cost of full demining (World Bank, end of 2024)
Strengthened and sustained international support, combined with Ukraine’s commitment and expertise, will be key to accelerating demining, restoring agricultural productivity, and ensuring a faster, safer path toward national recovery.
Source: Accounting Chamber of Ukraine, Tony Blair Institute, World Bank
Key developments for Ukraine’s Reconstruction
Ukraine launched online certification of mine action operators via Diia
The state portal Diia has introduced an online service that automates key stages for organizations planning to engage in demining activities, making the process of certifying mine action operators in Ukraine simpler.
Key improvements
Through the new service, the following processes will be automated:
- initial and repeat certification,
- monitoring,
- expansion of certification scope or extension of its validity,
- submission of appeals.
The only stage that will still take place offline is the “on-site assessment”, which requires experts to visit and directly inspect the operator’s activities.
Representatives of certification bodies and mine action operators will have separate offices where each participant will be able to perform their tasks:
- operators will submit, sign documents and track milestones,
- certification bodies will review them, provide comments and feedback, sign and form decisions on certification stages.
Certification timeline
In parallel, changes were made to the regulatory framework. Each action now has clearly defined deadlines - from application review to the signing of the service completion act. This will significantly speed up the certification process.
The speed of obtaining certification will depend on how quickly operators address remarks and submit additional documents. On average, the minimum certification period will be from 1 month.
Source: Ministry of Economy, Environment and Agriculture of Ukraine
International Benchmark
Denmark launches largest-ever Ukraine Transition Programme with DKK 2.8 billion commitment
In 2025, Denmark launched its largest country programme to date: the Ukraine Transition Programme (UTP), with a total budget of DKK 2.8 billion (approximately €375 million).
The UTP builds on and strengthens the civilian dimension of Danish support for Ukraine, focusing on three key areas:
- Strengthening resilience and urgent recovery, with a special focus on Mykolaiv.
- Energy security, green transition, and jobs across Ukraine.
- Democratic reforms and EU integration, including human rights and free media.
Denmark is the world leader in aid to Ukraine relative to GDP, contributing 2.9%.
Source: Ministry of Foreign Affairs of Ukraine, Ministry of Foreign Affairs of Denmark
Czech government extends humanitarian and reconstruction aid to Ukraine through 2030
On 3 September 2025, the Czech government approved the continuation of a program of humanitarian, stabilization, reconstruction, and economic assistance to Ukraine for the years 2026–2030. The programme will be funded at CZK 1 billion per year (approximately €40 million).
According to the Program, CZK 500 million (around EUR 20 million) per year in 2026–2028 will be allocated to the National Development Bank for the co-financing of European projects. In March, the EU approved two projects worth CZK 4 billion for the Czech Republic, which will allow Czech contractors to be engaged in the long-term restoration of critical infrastructure and modernization of hospitals in Ukraine.
In addition, the current allocation of CZK 500 million annually (approx. €20 million) will continue to support bilateral humanitarian, stabilization, and reconstruction activities in Ukraine, as well as assistance for Ukrainian refugees in Moldova.
Source: Ministry of Foreign Affairs of Czech Republic, Ukrinform
EBRD unlocks €200 million in financing for Ukrainian businesses through Raiffeisen Bank
The European Bank for Reconstruction and Development (EBRD) is extending an unfunded portfolio risk-sharing facility to Raiffeisen Bank Ukraine (RBU) to unlock €200 million in new financing for Ukrainian businesses.
Overview and target sectors
Under the facility, the EBRD will cover up to 50% of Raiffeisen’s credit risk on new finance worth €200 million for businesses operating in Ukraine. Through this credit enhancement mechanism, RBU will provide subloans to companies in critical sectors, including:
- Agribusiness
- Manufacturing
- Pharmaceuticals
- Transport and logistics
Importantly, 20% of subloans covered by the EBRD guarantee will support MSMEs investing in EU-compliant and green technologies, helping improve competitiveness in both domestic and international markets.
Special support
Eligible sub-borrowers will also receive EU-funded technical assistance and investment incentives, such as grants upon completion of their projects under the EU4Business initiative. Special support is provided for:
- Businesses and households most affected by the war, including those experiencing asset loss, destruction, or relocation
- Sub-borrowers facilitating reintegration of war veterans, people with disabilities, and internally displaced persons
- Communities in the hardest-hit territories
This initiative reflects the EBRD’s commitment to sustaining Ukraine’s economy, promoting private-sector resilience, and supporting socially and environmentally responsible investments during the ongoing conflict.
Source: EBRD
IFC and Privatbank launch 100 million dollar facility for small businesses in Ukraine
The International Finance Corporation (IFC) and PrivatBank have launched a $100 million risk-sharing facility (RSF) to expand financing for micro, small, and medium enterprises (MSMEs). The facility aims to support businesses by boosting lending in sectors such as:
- agribusiness,
- manufacturing,
- logistics.
A particular emphasis will be placed on women-owned businesses, which are expected to represent 35% of the loan portfolio.
Risk-sharing mechanism
Under the agreement, IFC will assume up to 50% of PrivatBank’s credit risk, with a maximum exposure of $50 million. This credit enhancement will enable PrivatBank to provide individual loans ranging from $10,000 to $100,000.
Supporting trade finance
PrivatBank is also joining IFC’s Global Trade Finance Program (GTFP), which helps local banks expand cross-border financing through payment risk guarantees. As part of this partnership, IFC will provide a $20 million trade finance guarantee facility, allowing PrivatBank to:
- Finance more imports and exports
- Strengthen partnerships with international banks
- Help Ukrainian businesses access new global markets
Together, these initiatives highlight IFC’s commitment to job creation, private-sector resilience, and sustainable recovery in Ukraine.
Source: IFC, PrivatBank
Focus on the private sector
Launch of €50M Ukraine Phoenix Tech Fund
The IT Arena conference in Lviv marked the official launch of the Ukraine Phoenix Tech Fund (UPTF), an early-stage €50 million venture capital fund created to back the resilience and help Ukrainian startups compete on the global stage.
UPTF is the first institutionally supported venture capital fund focused exclusively on Ukrainian tech startups, investing from pre-seed/seed through Series A.
Investors and Capital Structure
- European Investment Bank (EIB): potential €15 million commitment
- Bpifrance (French public investment bank): €10 million
- Proparco (AFD Group): €5 million
- Henri Seydoux (founder of Parrot): €2.5 million
Impact
The Fund will:
- Invest in early-stage Ukrainian tech companies, providing capital plus hands-on strategic support and access to international networks.
- Accelerate innovation, attract follow-on global capital, and deepen Ukraine’s integration into the European and international markets.
Leadership and Advisory Team
The fund will be managed by Dominique Piotet and Charles Whitehead, who bring decades of international experience and deep ties to Ukraine and its innovation ecosystem.
With strong international backing and a clear focus on fostering innovation, UPTF is set to become a cornerstone of Ukraine’s tech-driven recovery and long-term growth.
Source: InVenture, Ukraine Phoenix Tech Fund, Ministry of Digital Transformation of Ukraine
Ukrainian defense tech startup raises $15 million in Series A funding
Swarmer, a Ukrainian defense technology startup developing artificial intelligence systems for drone autonomy, has raised $15 million in a Series A round, it is the largest single investment in a Ukrainian defense tech company since the start of the full-scale war. The round was led by Broadband Capital Investments, with participation from R-G.AI, D3 Ventures, Green Flag Ventures, Radius Capital, Network VC, and UA1 VC.
About Swarmer
Swarmer’s technology enables groups of drones to execute missions autonomously, translating human-defined objectives into coordinated tactical actions. Its software is capable of managing up to 25 drones simultaneously.
The system has been trained on data from over 82,000 combat missions, which allows it to:
- Replicate the behavior of top pilots
- Make precise tactical decisions in real time
- Enhance coordination and autonomy on the battlefield
This landmark investment underscores international confidence in Ukraine’s defense technology sector.
Source: Swarmer, DOU
Ukrainian startup S.Lab secures £250,000 investment from Morgan Stanley program
Ukrainian startup S.Lab has joined the Morgan Stanley Inclusive & Sustainable Ventures accelerator program, backed by global investment bank Morgan Stanley.
As part of the program, the company raised £250,000, which will be directed toward scaling production and developing modular factories - container-based production lines that can be installed directly at client facilities.
Each of these lines is capable of producing up to 15,000 packaging units per month, which reduces logistics costs.
About S.Lab
S.Lab was founded in Ukraine in 2021. Following the full-scale invasion, the team relocated its production to Spain.
The company specializes in creating biodegradable packaging made from just two natural components: agricultural waste and mycelium, this eco-friendly material decomposes in soil in just 30 days.
Source: S.Lab
CCI France Ukraine initiatives
