Investing and Doing Business in Ukraine 2026

Ukraine’s reconstruction need is exceptionally large: the World Bank estimates more than USD 190 billion in damaged and destroyed infrastructure and total reconstruction costs exceeding USD 588 billion, with complete post-war economic recovery expected to top USD 1 trillion. Ukraine is reforming, liberalising and modernising to attract private capital for reconstruction and long-term recovery. Ukraine’s EU integration is advancing, and the first negotiation clusters for Ukraine's accession have opened. Ukraine's adoption of EU norms and harmonisation with EU systems and regulations is already creating investment opportunities. Key growth areas include defence, energy, agriculture, mineral resources, IT, infrastructure and reconstruction-related projects.

Foreign investors may operate in Ukraine by establishing a Ukrainian legal entity, such as a limited liability company or a joint-stock company, or through a representative office. An LLC is generally the simplest and most common form because no minimum capitalisation is required and it is less burdensome to establish. A foreign representative office requires only registration, but it is not a separate legal entity and its transactions and contracts, including liabilities, are in the name of its parent company. Ukrainian legal entities must register in the Unified State Register of Legal Entities, Private Entrepreneurs and Public Formations; registration is currently free of charge.

Ukraine’s headline tax rates include 18% corporate income tax, 15% withholding tax, 20% general VAT, 18% personal income tax, 5% military tax and 22% employer unified social contributions, subject to applicable caps and exceptions. Ukrainian resident companies are subject to corporate income tax on worldwide income, while non-residents may be taxed in Ukraine through a permanent establishment or on Ukrainian-source income. Ukraine also applies a set of targeted tax regimes and anti-avoidance rules. These include transfer pricing and thin capitalisation requirements, as well as withholding tax rules for cross-border payments. In addition, certain industries may benefit from special regimes, most notably the Diia City framework for qualifying technology and R&D-driven businesses (including R&D focused healthcare and bionic prosthetics).

Yes, war-risk and political-risk insurance are available through several channels, though availability and coverage should be checked for each project. Foreign governments insure certain Ukraine projects through national export credit agencies. Ukraine’s Export Credit Agency is authorised to provide direct investment insurance to investors and investment loan insurance to financial institutions. MIGA, the US International Development Finance Corporation and other institutions can provide political and war-risk insurance or credit enhancement for eligible projects. Private market products are also developing, including products from Ukrainian insurers and offerings from international brokers and reinsurers.

Foreign investors generally receive the same treatment as domestic investors, subject to specific exceptions. Foreign investors, including Ukrainian companies with foreign shareholders or foreign ultimate beneficial owners, are currently not entitled to own agricultural land, and additional restrictions may apply in regulated sectors. During martial law, investments and payment flows involving persons connected to Russia, and in some cases Belarus, may be restricted or effectively prevented by sanctions, ultimate beneficial owner-based limitations and enhanced bank compliance checks. Ukraine is also moving towards a formal FDI screening framework for certain sensitive sectors, although as of May 2026 the draft regime has not been adopted.

State support is available for large investment projects with domestic or foreign capital if they meet statutory requirements, including implementation in an eligible sector, creation of new jobs, at least EUR 12 million in significant investments and completion within five years. The total amount of state support is capped at 30% of the planned investment value. Support may include tax and customs benefits, land benefits, construction of infrastructure, compensation for connection to engineering and transport networks and certain forestry-production exemptions. Reconstruction support is also available through international financial institutions, government programmes, war-risk insurance mechanisms, industrial-park incentives, PPPs and the DREAM digital platform for reconstruction projects.

Foreign investors may rely on statutory investment-protection guarantees, including protection against nationalisation or expropriation except in limited emergency circumstances authorised by the Cabinet of Ministers. Foreign investors are generally entitled to reimbursement for losses caused by acts, omissions or improper performance of Ukrainian state authorities or officials. Ukraine is party to more than 70 bilateral investment treaty relationships and is also party to instruments such as the ICSID Convention, the New York Convention and the Energy Charter Treaty. Profit repatriation is guaranteed in principle after payment of applicable taxes and duties, but it remains subject to National Bank of Ukraine currency-control rules and martial-law restrictions. Current rules expressly permit certain dividend transfers abroad, including dividends accrued based on performance from 1 January 2023, subject to a EUR 1 million monthly limit per issuer and other conditions.

Ukraine has identified PPPs as a key instrument for reconstruction and has adopted a new PPP Law that came into force in October 2025. PPPs may be created through concession or PPP agreements, and private partners may form a consortium to participate.  PPPs are permitted in any sector not expressly prohibited, with priority areas including infrastructure, war-damaged housing and security and defence. Rebuilding PPP projects and minor PPP projects may benefit from simplified procedures, and PPPs are awarded through an Electronic Trading System, with mandatory online procedures for concession projects from 1 January 2027. Privatisation is conducted through auctions or sell-outs, with digital auctions via Prozorro and increased use of virtual data rooms and investor outreach.

Investors should consider defence, energy, agriculture, mineral resources, IT, infrastructure, healthcare and rehabilitation, real estate and construction and renewables. Ukraine has major opportunities in mineral resources, including reserves of critical raw materials such as lithium, cobalt and rare earth elements. Renewable energy and storage are accelerating as reconstruction prioritises energy resilience and decentralised generation and storage. Agriculture remains a core sector, with Ukraine holding 41.5 million hectares of agricultural land and strong export positions in grains and seed oils. IT continues to be one of the largest contributors to Ukraine's GDP, and reconstruction is attracting investment in infrastructure, real estate and construction. Healthcare and life sciences see rising demand for trauma, prosthetics, rehabilitation and mental-health products, and present telemedicine opportunities and attractive clinical-trials capacity.

Ukraine’s M&A market is resilient, with activity recovering year-on-year and war-related risks now commonly managed through ordinary transaction risk assessment, supported by growing interest in risk-mitigation tools and war-risk insurance. The market offers attractive opportunities across defence-tech, energy, infrastructure, agriculture, logistics, pharma and healthcare. In practice, transactions are usually structured as share acquisitions rather than asset deals, and larger or more complex investments are often implemented through familiar foreign holding structures, with English law commonly used for transaction documents to give international investors greater legal certainty. 

From a regulatory perspective, Ukraine remains relatively accessible: it does not currently have a formal FDI screening regime, and prior governmental approval is generally not required unless the target operates in a regulated sector.  The key clearance to consider is merger control before the Anti-Monopoly Committee of Ukraine, which may apply to changes of control, joint ventures and acquisitions of 25% or more of shares where the relevant financial thresholds are met.  Separate approval may be needed for ancillary restraints such as non-compete undertakings, and sector-specific approvals can apply in areas such as banking, financial services, and securities. Overall, Ukraine offers a practical and familiar deal environment for foreign investors, with clear structuring options and a growing pipeline of opportunities in strategically important sectors.