How the EU encourages investment in Ukraine: what the UIF is and how to use it
Ukraine today faces a dual challenge: defending itself against aggression while laying the groundwork for future economic development.
In this context, it’s crucial not only to receive aid from partners but also to build a sustainable model for attracting investment.
One of the key tools supporting this goal is the Ukraine Investment Framework (UIF) – a central component of the EU’s Ukraine Facility, which opens real opportunities for reconstruction financing.
Read more about this instrument, its advantages and the key challenges Ukraine faces in the article by Roman Nitsovych, Oleksandra Betlii, Alona Korohod and Vyacheslav Kurylo: Investments for recovery. How the Ukraine Investment Framework works and what it offers to businesses.
The UIF aims to attract private and public investment into sectors of Ukraine's economy that are critical for recovery. It serves as a real financial "cushion," helping to reduce risks for investors and build trust in Ukraine as a viable market.
As part of its specific requirements, special attention is given to green projects (no less than 20% of UIF financing) and to small and medium-sized enterprises (SMEs) and startups (at least 15% of the guarantee package).
The UIF is already operational. In 2024, the first agreements totaling over €1.4 billion were signed during the Ukraine Recovery Conference in Berlin.
Funding has been allocated to projects in the energy, transport and municipal services sectors.
One notable example is a loan granted to a pharmaceutical company for modernising its production facilities and installing solar panels.
Another case involves support for building power plants in Volyn Oblast, generating a multiplier effect of 3.6 for every euro invested.
This demonstrates that the UIF not only produces direct impact but can also trigger broader economic chains, where each euro invested leads to additional investment flows.
However, despite the clear advantages of the instrument, Ukraine faces several key challenges:
Low awareness among businesses. Many entrepreneurs are unaware of UIF or don’t know how to apply. Stronger outreach from the government, microfinance institutions (MFIs) and partner banks is needed.
Insufficient project readiness. Many initiatives fall short of financial institutions’ standards due to weak project preparation.
Low creditworthiness or compliance gaps. Even well-prepared projects may be ineligible due to financial instability or failure to meet compliance standards.
Lengthy procedures. Bureaucracy from MFIs has drawn criticism, though international partners are working to simplify processes in response to current challenges.
These problems highlight the importance of technical assistance – from project preparation to training in financial reporting and strengthening corporate governance.
The Ukraine Investment Framework is up and running: agreements have been signed, tools are in place, and international partners are engaged. Now is the time for Ukrainian businesses to take full advantage of these opportunities. What’s needed next is knowing where to turn and how to act.