Investment in the Ukrainian economy: New opportunities for business

Ukraine offers a diverse array of high-potential investment opportunities, driven by reconstruction needs, global demand, and its strategic role in Europe.

As the country rebuilds and integrates further with the European Union, sectors such as energy, infrastructure, agriculture, and technology present compelling prospects for international and regional investors.

Energy: A Cornerstone for Green Growth

Ukraine’s energy sector holds the largest investment potential, particularly in renewable energy (wind, solar, bioenergy), oil and gas, nuclear power, hydrogen, and the modernisation of power grids and storage systems. Investment needs in this sector are projected to exceed €160 billion by 2033, with a strong focus on green transition, sustainability, and energy independence.

Infrastructure Modernisation: Connecting Ukraine to Europe

Reconstruction and modernisation of Ukraine’s transport infrastructure - including railways, highways, ports, and airports - are vital for boosting export potential and integrating with European markets. This offers a unique opportunity to upgrade production facilities, attract foreign capital, and introduce advanced technologies. Investment in this sector is estimated at over €50 billion, with many public-private partnership projects already in motion.

Agriculture and Agro-Processing: A Global Powerhouse

Ukraine remains a global leader in agriculture, with vast potential in agro-processing, irrigation, fertiliser and seed production, and value-added food exports. Leveraging its fertile land and robust export capabilities, the sector is expected to attract €30–35 billion in new investments.

Green Metallurgy: Towards a Sustainable Industrial Future

Decarbonising the metallurgical industry is a priority, particularly through investment in green steel production using hydrogen and renewable energy instead of coking coal. This includes the development of direct reduced iron and hot briquetted iron capacities to align with EU standards and environmental goals.

Critical Minerals: Strategic Resources for Europe

Ukraine is rich in critical minerals such as lithium, titanium, uranium, tantalum, and graphite. Investment in extraction and processing supports both domestic industrial growth and the EU’s efforts to diversify its supply chains.

Digital Resilience: Ukraine’s Thriving IT Sector

Despite the ongoing war, Ukraine’s IT sector continues to demonstrate resilience and innovation. Key strengths include software development, cybersecurity, fintech, and digital transformation. As a leading European IT outsourcing hub, Ukraine is well-positioned for continued post-war expansion.

Defence and Innovation: A Rapidly Evolving Sector

The war has accelerated innovation in military technologies, equipment, and R&D. This rapidly growing sector presents profitable investment opportunities for businesses focused on defence and dual-use technologies.

Reconstruction and Healthcare: A Multi-Billion Euro Market

Post-war reconstruction of housing, utilities, and industrial facilities represents a massive market with high demand for construction materials, engineering, and architectural services. Simultaneously, there is increased need for advanced medical care, rehabilitation technologies, and healthcare infrastructure -- opening the door for investment in pharmaceuticals, medical devices, and health tourism.

Manufacturing and Industrial Development

Investment in manufacturing -- including chemicals, machinery, and consumer goods -- is essential as Ukraine aims to reduce dependency on imports from Russia and China. Strengthening domestic industry remains a national priority.

A Strategic Path Toward EU Integration

Ukraine’s investment landscape is shaped by its EU integration, post-war recovery, and global trends in sustainability and technology. The country has already implemented significant portions of EU legislation under the Association Agreement and continues to align itself closely with EU standards.

Ukraine and the EU are increasingly becoming mutually beneficial trading partners. With a population of over 40 million, Ukraine also represents a substantial consumer market, offering European –- including Cypriot -- businesses direct access to the Common Market.

Strengthening Ukraine–Cyprus Economic Ties

Despite the ongoing full-scale Russian aggression, bilateral relations between Ukraine and Cyprus have steadily progressed. In 2024, bilateral trade exceeded €105 million, according to the Statistical Service of Cyprus. Furthermore, Cyprus remains a key investor in Ukraine, with direct investments totaling approximately €1.1 billion, according to the National Bank of Ukraine.

While this foundation is strong, there is significant potential for deeper and more dynamic cooperation. Ukraine is ready to intensify collaboration in priority sectors such as agriculture, industry, maritime affairs, scientific innovation, energy efficiency, digital transformation, and investment.

With a solid legal framework and long-standing ties, our two countries are well-positioned to transform these connections into practical and forward-looking partnerships.

A Call to Action: Joint Participation in Ukraine’s Recovery

We encourage Cypriot businesses and government representatives to take an active role in Ukraine’s recovery and development. Participation in strategic investment projects will not only strengthen Ukraine’s economy but also generate long-term benefits for Cypriot enterprises.

In particular, we warmly invite the Government of the Republic of Cyprus and the Cypriot business community to participate in the Ukraine Recovery Conference, which will be held in Italy on 10–11 July 2025. Active engagement in Ukraine’s reconstruction will raise bilateral economic cooperation to a new level.

Investing in Ukraine opens the door to new opportunities across multiple high-growth sectors. Driven by its strategic location, talented workforce, cost competitiveness, and reform-oriented environment, Ukraine is a promising partner for sustainable and profitable business cooperation.

We believe Cyprus stands to gain significantly from deepening its investment partnerships with Ukraine -- and we look forward to building this future together.

*Ruslan Nimchynskyi, Ambassador of Ukraine to the Republic of Cyprus