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Newsletter #28 Reconstruction Ukraine - October 2025
In this October issue, we’re happy to be back with the latest updates on Ukraine’s recovery. As winter approaches, attacks on the country’s energy infrastructure are intensifying, putting additional strain on the energy system and showing that Russia remains unwilling to end its aggression. Despite the government’s continued efforts to restore damaged facilities, the situation remains difficult, and the impact is being felt across the country.
Against this backdrop, we start this edition with an overview of the Ukraine Energy Support Fund — an international initiative helping to rebuild and strengthen Ukraine’s energy sector.
Also, in this issue:
- Highlights from the annual UMAC 2025.
- New government measures to support businesses, including a compensation mechanism for war-affected enterprises and steps to simplify operations.
- The launch of a new technology partnership between Ukraine and Norway.
- Key financing programs for the energy sector from UNDP and the EIB, along with new initiatives from the EU/IFC and EBRD.
- A new funding program for Ukrainian innovative startups.
Stay with us to follow Ukraine’s recovery journey — because only together can we rebuild a strong and resilient Ukraine!
Enjoy the read!
Ukraine Reconstruction: Key Figures
Energy sector support
On 21 October, the Ukraine Energy Support Fund published its Half-Year Report, covering the period January - June 2025. Established in April 2022 by the Energy Community Secretariat, at the request of the Cabinet of the EU Commissioner for Energy and in coordination with the Ministry of Energy of Ukraine, the Fund enables contributions from governments, international organizations, financial institutions, corporations, and private entities to support the recovery and stabilization of Ukraine’s energy system. You will find key highlights below.
Scale of destruction
- over 50% of Ukraine’s pre-war generation capacity was destroyed or offline by mid-2025. This includes the 6 GW Zaporizhzhia Nuclear Power Plant, currently under occupation.
- approximately 70% of thermal generation capacity has been damaged or captured.
Since 2022, Russia targeted at least:
- 18 major thermal and CHP plants
- Over 800 boiler houses
- Nearly half of Ukrenergo’s high-voltage substations
Fund performance and donor support
During the reporting period, the Fund received over €202.5 million in new contributions, raising its cumulative balance to €1,148.4 million by end of June 2025.
Major contributors include:
- Germany – €389,517,804 (33% of total contributions)
- European Union – €159,000,000 (14% of total contributions)
- Sweden – €139,263,185 (12% of total contributions)
- United Kingdom – €101,925,324 (9% of total contributions)
- United States – €71,246,827 (6% of total contributions)
Donor participation has expanded to 33 contributors in total.
Operational activity
- The Ministry of Energy of Ukraine approved 195 support requests during the period.
- 158 of these were processed by the Secretariat.
- The total value of these requests reached €271.7 million (and €1,133.4 million since the Fund’s establishment).
- 145 purchase agreements were concluded, worth €109.7 million in contracted value(a cumulative €668.7 million since inception).
- Deliveries accelerated, totalling €305.2 million during the period (€465.7 million cumulatively).
- Disbursements grew by €185.3 million, reaching €548.0 million in total.
Currently, attacks on Ukraine’s energy infrastructure have intensified again. As a result, the 2025–2026 winter season is expected to be extremely challenging, as Ukraine must restore lost generation capacity and secure sufficient fuel reserves to endure the heating period. In this context, continued international support remains a crucial factor in ensuring the resilience and recovery of Ukraine’s energy system.
Source: Ukraine Energy Support Fund
● REPLAY Conference - Resilience through innovation: the role of energy storage in Ukraine’s recovery
On October 2, CCI France Ukraine had the pleasure of hosting an event on a topic that’s more relevant than ever: energy efficiency.
Together with industry experts, we explored how energy storage technologies are helping make Ukraine’s energy system more flexible, resilient, and ready for integration with the European network.
Speakers:
- Jérôme Betton de Sèze, International technical expert for European reconstruction and integration, Advisor to the Deputy Minister of Energy for European integration
- Vadym Utkin, Energy Storage Lead at DTEK
Moderator: Mykhailo Bubnov, General Manager Schneider Electric Ukraine, the Chair of the Energy & Sustainable Development Committee CCIFU
Discussion topics included:
- The needs, investments, and modernization of Ukraine’s energy sector
- Innovative solutions and insights from DTEK’s experience
- Integration with the European energy grid
- Challenges and future prospects for energy storage
The event replay is available at the following link.
Ukraine Mine Action Conference (UMAC) 2025
UPDATE: CCIFU unveils tool to support businesses in Ukraine's reconstruction
On October 22, Japan hosted the largest annual conference on humanitarian demining, UMAC 2025, bringing together representatives from 57 countries. Among the participants were the Foreign Ministers of Japan, Croatia, Lithuania, and Sweden, as well as heads of relevant EU institutions, the United Nations, and leading international organizations.
Conference focus
This year’s program focused on the future after demining, exploring how people and technology can accelerate the process while making it safer and more efficient. Dedicated sessions were held on business opportunities, innovative financing, and digitalization within the sector.
Key commitments
- Partner countries announced additional support for humanitarian demining, totalling over $80 million USD. Contributing nations include Belgium, Italy, the Netherlands, Norway, Switzerland, and Sweden.
- Japan unveiled a new package to support the comprehensive long-term reconstruction of Ukraine, targeting human capacity development, technical capabilities, social and economic rehabilitation, and reintegration of affected populations, with a focus on enabling safe returns to normal life.
- Slovenia and Ukraine signed a Memorandum of Cooperation in humanitarian demining. The agreement marks a significant milestone in strengthening bilateral cooperation on demining, victim rehabilitation, environmental recovery, and institutional development.
- During the conference, a Memorandum of Understanding was also signed between the Azerbaijan Republic Agency for Demining and the State Emergency Service of Ukraine. This agreement includes the training of Ukrainian sappers at the expense of donors and the exchange of practical approaches in the field of specialist training.
The conference reinforced international collaboration, mobilized significant financial support, and established new partnerships that will accelerate safe and sustainable reconstruction efforts worldwide.
Source: Ministry of Economy, Environment and Agriculture of Ukraine, ANAMA, Government of Republic of Slovenia, Ministry of Foreign Affairs of Japan
CCI France Ukraine initiatives
UPDATE: 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.
October 2025 update
In October 2025, the Franco-Ukrainian Chamber of Commerce and Industry (CCIFU) released an updated version of its LET’S REBUILD UKRAINE tool. The study now features 270 Ukrainian private companies, covering the entire value chain of the building and construction sector, from manufacturers to contractors.
LET'S REBUILD UKRAINE: an Innovative tool
Developed by CCIFU, LET’S REBUILD UKRAINE isa 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 270 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
Discover the first pages of the study HERE.
● CCIFU participates in the Rebuild Ukraine exhibition
We are glad to announce that the CCI France Ukraine will be participating in the Rebuild Ukraine exhibition for the third consecutive year! This event will take place on November 13 and 14 in Warsaw, where the CCIFU will be presented at the pavilion organized by Business France.
Visit us at our booth to learn more about our initiatives and strengthen cooperation between French and Ukrainian companies! Discover the opportunities and challenges of the Ukrainian market during this crucial period of reconstruction.
Key developments for Ukraine’s Reconstruction
Ukraine introduces new mechanism to support businesses affected by war
The Cabinet of Ministers of Ukraine has approved a resolution establishing procedures for providing partial compensation to businesses for property destroyed or damaged as a result of Russia’s armed aggression, as well as partial reimbursement of insurance premiums under war risk insurance contracts.
This decision lays the legal foundation for launching a new state mechanism to support businesses, combining two key components:
- Direct compensation for losses incurred by enterprises in frontline regions.
- Partial reimbursement of insurance payments for businesses across Ukraine.
Key provisions
1. Direct compensation for frontline regions
Businesses located in frontline areas will be eligible to receive partial compensation for damaged or destroyed property, including buildings, warehouses, equipment, and other assets.
The maximum compensation amount is up to 10 million UAH (approx. 200 000 EUR), but not exceeding the actual value of the losses.
Applications will be reviewed by the Export Credit Agency (ECA), which will administer all payments from the state budget.
2. Compensation of part of insurance payments for businesses throughout Ukraine
In regions where insurance companies are ready to offer war risk insurance, businesses can independently choose an insurer, sign a contract, and pay the insurance premium.
After the insurance period expires, the business can apply to the ECA to receive compensation for part of the premium, up to 1 million UAH (approx. 20 000 EUR).
This mechanism enables entrepreneurs to make real use of war risk insurance services while fostering the development of this market segment among insurance companies.
Source: Ministry of Economy, Environment and Agriculture of Ukraine
Ukraine's government simplifies procedures for businesses
On October 10, the Cabinet of Ministers of Ukraine adopted a series of decisions aimed at simplifying business operations.
Digital solutions for entrepreneurs and citizens
- “Pulse” – an information system designed to simplify communication between businesses and government authorities. Starting January 1, 2026, the government will launch an experimental project to digitalize interactions between authorities and businesses.
- Risk management module - will automatically identify companies for inspections in 85 sectors, reducing human involvement and corruption risks.
Supporting businesses and producers
- Public procurement: Stronger control of localization requirements to protect Ukrainian manufacturers.
- Fishing permits: Clearer rules for issuing fishing permits.
- Affordable loans 5–7–9%: Extended to areas affected by active hostilities.
- Landmine compensation: Households can receive state support for clearing their land.
- State-owned enterprises: More regular publication of data to increase transparency.
These steps aim to create a business-friendly, transparent environment across Ukraine.
Source: Ministry of Economy, Environment and Agriculture of Ukraine
Lviv region showcases export potential
The Lviv Regional Military Administration has recently presented “The Export Potential of Lviv Region” — an annual promotional catalog that highlights local businesses and their products. The publication aims to help companies across the region expand their export opportunities and reach new international markets.
This year’s edition features 192 enterprises from various industries, including construction, woodworking, light manufacturing, machinery, furniture, metalworking, printing, food, chemical, and paper production, as well as services.
The catalog is available in both Ukrainian and English via the link.
Source : Lviv Regional Military Administration
International Benchmark
Ukraine and Norway forge technological partnership to advance defense innovations
Ukraine and Norway signed a memorandum of cooperation aimed at strengthening technological collaboration and fostering the development of innovations in the defence sector.
Program implementation
The implementation of this partnership will be driven by the Brave-Norway program. Key components of the program include:
- Grant programs: Funding for Ukrainian and Norwegian startups specializing in unmanned systems and defense technologies.
- Joint hackathons: Collaborative events to identify new solutions and accelerate innovative projects.
- Innovation platforms: Creation of networks connecting scientists, companies, and entrepreneurs from both countries.
On the Ukrainian side, the program will be implemented by the Brave1 defense tech cluster, while in Norway, it will be overseen by the Norwegian Defense Research Establishment (FFI). The memorandum takes effect immediately upon signing and will remain in force for one year, with the possibility of extension.
The launch of the program
The official launch of Brave-Norway is planned by the end of 2025. The preliminary budget is €20 million, with €10 million contributed by each country.
Norwegian funding will be directed toward a grant program for the development of technologies and solutions, which will be tested in Ukraine. If successful, these solutions may be recommended for large-scale procurement to meet the needs of Ukraine’s Armed Forces.
Source: Ministry of Digital Transformation, Norwegian Defense Research Establishment
EIB provides €300 million loan to Naftogaz to strengthen Ukraine’s energy resilience
The European Investment Bank (EIB) has signed a landmark €300 million loan agreement with Ukraine’s state-owned energy utility, Naftogaz, to support the resilience of Ukraine’s energy sector and replenish long-term gas reserves ahead of the upcoming winter season.
The funds will help secure reliable energy supplies for households and businesses across the country, following severe damage to Ukraine’s energy infrastructure caused by Russia’s ongoing attacks.
Reinforcing the green transition
As part of the agreement, Naftogaz has committed to reinvest an amount equivalent to the EIB loan into renewable energy and decarbonisation projects. The EIB is already supporting this process through technical assistance, helping Naftogaz to advance its decarbonisation strategy and accelerate its green transition in alignment with European climate objectives.
Coordinated partner support
This operation is part of the EIB’s Ukraine Energy Rescue Plan. Under this strategic initiative, the EIB has committed to provide urgent support for Ukraine’s energy system during the war, while keeping the country on course for the green transition and integration into the EU single market.
The financing is also part of a coordinated Team Europe effort, with the European Commission backing the loan through the EU’s Ukraine Investment Framework (UIF) guarantee.
Source: EIB, Naftogaz
EU and IFC sign €100 million guarantee agreement to boost private investment in Ukraine
At the “Ukraine – EU: Invest in Recovery” forum in Brussels, the European Commission and the International Finance Corporation (IFC) signed a landmark agreement to provide €100 million in guarantees for investments in Ukraine. This initiative aims to stimulate high-impact quasi-equity and equity investments in Ukraine’s private sector across critical sectors.
Supporting Ukraine’s key economic sectors
The guarantees will be channelled through the Amber-Dragon Fund, which focuses on investments in key sectors for Ukraine’s recovery and sustainable economic development:
- transport,
- logistics,
- energy,
- telecommunications.
By strengthening these essential industries, the initiative is designed to accelerate the country’s reconstruction efforts and attract further private investment to drive long-term growth.
The agreement is part of the IFC Better Futures Program, a pre-existing framework providing guarantee cover for Ukraine-based financing operations. With the inclusion of the High Equity Guarantee Agreement, the total guarantee capacity under this umbrella increases to €750 million.
Source: Ministry for development of communities and territories of Ukraine, European Commission
Ukraine and UNDP launch €16.5 million renewable energy program to boost energy independence
The Ministry for Communities and Territories Development of Ukraine and the United Nations Development Programme (UNDP) in Ukraine have signed a financial agreement officially launching the Renewable Energy Solutions (RES) Programme.
The overall RES Programme is a collaborative effort between:
- EIB,
- Ministry for Development of communities and territories of Ukraine,
- UNDP,
- German development agency GIZ.
Promoting energy independence
With a total budget of €16.5 million, the RES Programme aims to strengthen energy security and independence across Ukraine’s communities. The initiative will fund the installation of solar panels, heat pumps, and battery storage systems in key public infrastructure facilities such as schools, hospitals, and kindergartens.
The objective is to support these institutions in achieving “prosumer” status, meaning they can generate their own power and feed surplus energy back into the grid, significantly reducing utility costs and reliance on centralised systems.
Through this cooperation, the Government of Ukraine and UNDP continue to advance shared goals of energy efficiency, environmental sustainability, and community empowerment, paving the way toward a cleaner and more self-sufficient energy future.
Source: UNDP,Ministry for development of communities and territories of Ukraine
EBRD provides €200 million in risk-sharing facilities to Ukreximbank
The European Bank for Reconstruction and Development (EBRD) is extending two new unfunded portfolio risk-sharing facilities to Ukreximbank, the State Export-Import Bank of Ukraine, to enable €200 million in new lending to Ukrainian borrowers.
Financing priorities
Under the new agreement:
- €100 million will be allocated to enterprises operating in critical industrial sectors;
- €100 million will support companies and municipalities implementing projects in energy production, storage, and efficiency.
Through these measures, Ukreximbank will be able to provide essential financing to help sustain key industries and promote the transition to cleaner, more efficient energy solutions.
The EBRD’s guarantees will cover 50% of the credit risk on Ukreximbank’s newly issued sub-loans to private businesses, state-owned enterprises (SOEs), and municipalities.
Focus on SMEs and vulnerable enterprises
A key component of the programme is targeted support for small and medium-sized enterprises (SMEs) and businesses from vulnerable sectors.Up to 20% of sub-loans under the risk-sharing scheme will be channeled into long-term SME investments through the EU4Business-EBRD Credit Line, which includes grant components and technical assistance.
The partnership between the EBRD and Ukreximbank demonstrates continued commitment to supporting Ukraine’s financial stability and private sector development amid wartime challenges.
Source: EBRD, Ukreximbank
Focus on the private sector
Challenger Accelerator launches 4.0 Batch for Ukrainian innovators
The Challenger Accelerator has launched its 4.0 batch, inviting startups in EdTech, HealthTech, and AI to apply.
About the program
The Challenger Accelerator is designed for startup teams looking to:
- attract investment,
- refine their product,
- scale their business,
- enter new markets.
Challenger is an equity-free accelerator: startups don’t pay to participate and don’t give up any equity. However, if a team raises investment during the program or within one year after, Challenger may receive 3–5% of the raised amount.
Benefits for Challenger 4.0 participants
- $25K grant for the winner from accelerator partner UMAEF.
- $75K+ in cloud service credits for the top 3 teams from USF and additional partner perks.
- A trip to Latitude59 for the best startups.
- 30+ hours of 1:1 mentorship with top business and tech experts, tailored to your needs.
- 15+ hours of workshops with practitioners on product-market fit, fundraising, marketing, sales, and more.
- Sessions with Ukrainian and international investors, including personalized feedback and recommendations.
- Networking and community events with founders, mentors, and industry leaders.
Eligibility
Startups are eligible to apply if they:
- Have a team of at least two members;
- Have developed a product at the MVP stage.
Applications are open until November 20. The accelerator will run in a hybrid format from January to April 2026, featuring several offline events.
Through this initiative, Challenger continues to empower Ukrainian startups — helping them grow, scale, and bring cutting-edge innovations to global markets.
Source: Challenger
