Ukraine stands as one of Europe's largest untapped emerging economies. Positioned in a strategic transit corridor linking Europe and Asia, it serves as a vital transportation and logistics hub with access to markets in Central Asia, the Middle East, and beyond.
With a skilled and educated labour force, substantial natural resources, and ongoing reforms to improve the business climate, Ukraine presents itself as an attractive destination for international businesses. Despite experiencing an unprecedented GDP loss in 2022 due to full-scale armed aggression, Ukraine, with the support of international partners, has managed to maintain macro-financial stability and return to growth in 2023.
Competing on a global scale in agriculture, metallurgy, and mining, Ukraine is poised to witness a surge in investment interest. As Ukraine progresses towards EU membership candidacy and implements investor-friendly policies across various sectors, it lays the groundwork for long-term economic growth. With international support, ongoing reforms create opportunities in sectors such as manufacturing, agri-processing, energy, construction materials, IT, green industries, and more.
TRADE AND EXPORT RELATIONS
Sweden and Ukraine share robust economic ties, with Sweden being Ukraine's largest trade partner in Northern Europe. Over 80 Swedish companies are active in the Ukrainian market, supplying machines, equipment, paper products, vehicles, and pharmaceuticals. Ukraine, in turn, plays a pivotal role in Sweden's trade activities, particularly in metals, timber, furniture, chemicals, and heavy machinery.
As Ukraine prepares for reconstruction, it offers an appealing prospect for Swedish sustainable solutions. This allows companies to seize opportunities in new sectors while enhancing their presence in existing ones.
As of October 2023, Ukraine is facing a staggering USD 150 billion in direct infrastructure and building damage. The anticipated demand for reconstructing tens of thousands of devastated residential, educational, administrative, healthcare, and other facilities in war-affected regions is set to position Ukraine as "the world's largest construction site."
Swedish companies have the opportunity to make significant contributions to aid in the reconstruction of Ukraine's infrastructure – by supplying modern construction technologies or engaging in building materials production.
IT AND DIGITALISATION
Despite the challenges posed by the full-scale invasion, Ukraine achieved a record-breaking USD 7.34 billion in IT services exports in 2022, establishing it as the third-largest contributor to the country's overall export portfolio. Ukraine's dynamic IT sector, encompassing software development, artificial intelligence, blockchain, FinTech, and more, offers a highly attractive avenue for investment.
With the support of favourable state incentives, a government vision centered on establishing a digital state where all public services are accessible online, and an impressive pool of over 300,000 highly skilled IT specialists, Ukraine is firmly establishing itself as a leading IT hub in Europe. Offering a wealth of opportunities for the Swedish IT sector, ranging from startups and venture capital investments to software development collaborations and beyond, the Ukraine is an attractive destination for those seeking to expand their presence in the country.
HOW WE CAN HELP
With Business Sweden's renewed presence in the country, we look forward to assisting Swedish companies in Ukraine's sustainable reconstruction efforts. Our primary aim is to help Swedish enterprises effectively contribute their expertise and solutions to the broader reconstruction initiatives, offering hands-on support and strategic guidance to contribute to Ukraine's future development.