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🌐 Ukraine’s Construction Sector: Challenges, Investment Solutions, and Coordination with European Partners

These issues were discussed in detail during the meeting of the Task Force “Ukraine” on May 6, 2025.

💬“For over three years, I’ve been impressed that you are still working in the construction sector, that you are rebuilding your country. It is truly remarkable to see the effort you are putting into your work,” said Kjetil Tonning, Head of the FIEC-EIC Task Force “Ukraine”, Honorary President at FIEC, as he opened the meeting.

🌐Jeanne Robles, Policy Officer at DG ENEST, presented investment opportunities in Ukraine’s infrastructure recovery within the second pillar of the Ukraine Facility.

According to her, one-third of the instrument’s budget will be provided as grants, while the remaining two-thirds will be in the form of concessional loans. The main goal is to reduce risks for investors and create favorable conditions for attracting funding from both businesses and Ukrainian public institutions.

The financial framework includes:

💰€7.8 billion in guarantees to cover potential losses for creditors and reduce risks for the private sector;

💰€1.5 billion in a combination of grants, technical assistance, and funding from international financial institutions to lower the overall cost of projects.

Priority investment areas include energy, transport, digitalization, municipal services, food, critical raw materials, the green transition, human capital, and access to finance.

Jeanne Robles also spoke about the Municipal, Infrastructure & Industrial Resilience Programme implemented by the EBRD in partnership with the European Commission. The expected multiplier effect is 3.5x — meaning that €150 million could attract up to €525 million in total investment.

🏛️ Florence Bachelard-Bakal, Deputy Head of Ukraine at the EBRD, presented the key areas of support for foreign investors in Ukraine’s construction sector.

Among the available opportunities is the financing of investment projects under flexible conditions adapted to the long-term nature of construction cycles.

For companies working in partnership with international investors, key advantages include the mitigation of political, social, and regulatory risks, as well as access to donor funding — for training programs, sustainability audits, innovations, or the preparation of technical documentation.

As Florence Bachelard-Bakal emphasized, the EBRD has supported companies with relocation to western Ukraine and securing power supply during blackouts. Currently, the bank assists companies in developing roadmaps for further growth, setting priorities, and more.

🔍 At the special request of the Confederation of Builders of Ukraine, Andrii Mokriakov, Senior Consultant at Pro-Consulting, shared an analytical overview of the current situation in Ukraine’s construction market and the importance of integrating construction waste into the circular economy during his presentation.

Among the main challenges facing the market, he highlighted rising costs, labor shortages, energy instability, shifts in housing demand, demographic trends, and changes in logistics routes.

Key trends include developers reorienting toward safer regions, the active emergence of new players, delays in project launches, and growing demand for fast construction.

The speaker paid particular attention to the issue of construction waste recycling. He outlined existing barriers, including the lack of proper research and regulatory framework. At the same time, he emphasized the growing social awareness of this issue in Ukraine — both among communities and businesses.

Andriy Mokryakov stressed the need to develop a national strategy for managing construction waste, which would enable its systematic integration into the recovery process.

🌐 Oleksandr Chervak, CEO of the CBU, informed participants about the outcomes of the Recovery Construction Forum Ukraine 2.0, which took place on April 16 in Kyiv.

💬 “We believe that every such event improves the quality of agreements and future projects. We discuss a range of initiatives and practical cases in a focused manner. We addressed practical topics: housing recovery, the reconstruction of critical and social infrastructure, and the business perspective on investments. Our goal at such events is to talk about opportunities — for business, for communities, and for municipalities. So that they can come to agreements and implement projects more quickly,” emphasized Mr. Chervak.

He informed colleagues about the launch of the “Architectural Navigator” project — a catalog of typical designs for social infrastructure. The goal of the Architectural Navigator is to enable fast, high-quality, and cost-efficient construction based on modern, scalable designs.

Oleksandr Chervak also invited international partners to join the upcoming Recovery Construction Forum 4.0, which will be held on November 13, 2025, in Warsaw, Poland.

Domenico Campogrande, Director General of the FIEC shared information about events planned in the lead-up to the Ukraine Recovery Conference 2025.

Participants discussed in more detail the initiative to hold additional B2B meetings ahead of URC2025.

They also noted the ongoing preparations for participation in URC2025, which will take place on July 10–11 in Rome, Italy, and shared their experiences and outcomes from other events in which they have actively participated.

WE WILL WIN AND REBUILD EVERYTHING! 💪

TOGETHER TO VICTORY! 

GLORY TO UKRAINE! 💙💛