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Newsletter #22 Reconstruction Ukraine - March 2025

The month of March marked an important turning point in French-Ukrainian relations. The partnership between France and Ukraine is strengthening, with not only consistent political and military support but also the emergence of new structural economic initiatives.

On the diplomatic front, discussions are intensifying: France, alongside its European partners, is exploring new forms of cooperation on the ground, notably through the possible deployment of military delegations. Meanwhile, the announcement of an additional €2 billion in military aid confirms France's commitment to playing a central role in supporting Ukraine.

In this edition, we have chosen to highlight the economic dimension of this strategic relationship, particularly with a focus on the €200 million French grant fund: the number of selected projects, the sectors involved, and the distribution of funding.

We will also revisit key events organized by the CCI France-Ukraine, which continues to build strong ties between French businesses and Ukrainian partners in the context of reconstruction.
 

Also in this edition:

 🔹 The latest European Union initiatives to support businesses affected by the war

 🔹 New aid programs from Norway through the Nansen Fund

 🔹 A new initiative by the EBRD, supported by BII and Proparco, to boost trade in Ukraine

Finally, this edition features several projects led by French companies that are actively contributing to the reconstruction and modernization of the country:

 🔹 The development of Ukraine’s first digital substation

 🔹 French support for the revival of Ukraine's civilian nuclear sector
 

Enjoy the read!

France at the forefront of Ukraine's reconstruction

• €200 million French grant fund results

On March 7, a presentation was held to showcase the winning projects of the 200 million euros French fund supporting Ukraine's economic resilience. The event brought together high-level officials, including Yulia Svyrydenko, First Vice Prime Minister and Minister of Economy of Ukraine, Jean-Noël Barrot, Minister of Europe and Foreign Affairs, and Eric Lombard, Minister of the Economy and Finance.

A bilateral agreement to establish the Ukrainian Fund, with a budget of 200 million euros, was signed on June 7, 2024, to finance reconstruction projects in priority sectors. The results highlight the significant success of this initiative:

• 70 applications submitted in just three months, totaling 700 million euros.
• 19 reconstruction projects involving 17 French companies, including 10 SMEs and mid-sized enterprises.
• Over 50 French production sites involved in the implementation of these projects.
• 5 key sectors: healthcare, demining and fire safety, energy, infrastructure, and water.
• 200 million euros allocated as follows:

                            - 51 million euros to the healthcare sector.

                            - 64 million euros to the energy sector.

                            - 44 million euros to the demining sector.

                            - 23.9 million euros to infrastructure projects.

                           - 14.9 million euros to the water sector.

All selected projects are set for completion within 5 to 16 months, ensuring a swift and tangible response to Ukraine’s most urgent needs. This initiative not only strengthens Ukraine’s economic resilience but also reinforces the enduring partnership between France and Ukraine in the face of ongoing challenges.

Source: Direction générale du Trésor, Ministry of Economy of Ukraine

Latest events by CCI France Ukraine

• CCIFU unveils tool to support businesses in Ukraine's reconstruction

As Ukraine embarks on a concrete phase of reconstructing its territories and infrastructure, the mobilization of European and French companies has become more crucial than ever. This mobilization requires reliable and field-adapted tools to effectively support reconstruction efforts.

LET'S REBUILD UKRAINE: an Innovative tool

In this spirit, the Franco-Ukrainian Chamber of Commerce and Industry (CCIFU) has developed LET'S REBUILD UKRAINE, a study aimed at facilitating and securing the development of European companies in Ukraine's building and construction sector. Despite the war, the Ukrainian economy demonstrates remarkable resilience, with projected growth of 5% in 2024. Local sector actors will play a key role in reconstruction projects, with priority access to markets and financing. Therefore, it is essential for European companies to connect with these actors today.

Benefits of LET'S REBUILD UKRAINE

• Updated Mapping: Over 250 private Ukrainian companies are listed, covering the entire value chain, from manufacturers to construction companies.

• Tool for Suppliers and Investors: Designed for suppliers of products and solutions, investors, or any company seeking local partners.

• Gateway to the Ukrainian Market: A concrete solution for accessing the Ukrainian market, even in a context where on-site prospecting remains challenging.

Our ambition

Our goal is to save time and increase visibility for European companies by providing a clear vision and qualified contacts. We would be delighted to present this tool in more detail and discuss how it can address your challenges or those of your partners.

For any questions or to schedule a discussion, please feel free to contact: Pascal Hieronimus phieronimus(@)ccifu.com.ua

• Meeting between CCIFU and Ministry for Development of Communities and Territories of Ukraine

On March 26, the members of the CCI France Ukraine from the construction, energy, infrastructure, and water sectors were warmly welcomed by First Deputy Minister Aliona Shkrum and her team at the Ministry for Development of Communities and Territories of Ukraine

This meeting allowed for a direct, open, and constructive exchange on the current challenges and collaboration prospects between public and private stakeholders, both French and Ukrainian.

Also present on the Ukrainian side:

• Kostiantyn Kovalchuk, Vice Minister

• Serhii Sukhomlyn, President of the Restoration Agency

• Artem Husak, Director of Investment Policy

• Volodymyr Shemaiev, Director of the International Projects Office of Ukrzaliznytsia

On the French business side: Egis, Saint-Gobain, Watzenrode, Martin Duplantier, Gerz Construction, Tech Trend, Ukrsibbank and CMA-CGM.

The core topics of discussion:

• Modernization of energy, water, road, and rail infrastructure

• Project financing & attracting investments

• Development of border crossings and port protection

• Pricing & public-private partnerships

A shared belief: the reconstruction of Ukraine is a two-way process — the state's voice and that of businesses ready to get involved.

Source: CCIFU

• Conference: "Supporting Ukraine's Future"

The French-Ukrainian Chamber of Commerce and Industry (CCIFU) had the privilege of organizing a conference on March 25, 2025, titled: "Supporting Ukraine's future: France's political, military, and economic strategy."

We were honored to welcome:

• Gaël Veyssière, Ambassador of France to Ukraine (pre-recorded video message)
   
• Sébastien Surun, Minister-Counselor, Embassy of France in Ukraine
   
• Pierre Offret, Head of the Economic Section, Embassy of France in Ukraine

The conference was hosted by Bertrand Barrier, President of the CCIFU.
 

Conference objective

The goal of the conference was to provide an update on France’s strategic support for Ukraine, in a context where political, military, and economic dimensions are more intertwined than ever.

Ambassador Gaël Veyssière, who was in France for meetings with Presidents Volodymyr Zelensky and Emmanuel Macron, delivered a video message in which he reaffirmed France's unwavering support for Ukraine's resilience.

"This is a time to develop relations with Ukraine..."

Key takeaways from the conference

✅ Political support: France maintains a constant, clear, and unequivocal commitment to Ukraine.

✅ Military support: Deliveries of weapons and equipment are ensured, but their effectiveness depends on the speed of production and maintenance capabilities on the ground.

✅ Economic support: France has launched 19 development projects in 5 key sectors:

• Energy
   
• Water
   
• Demining
   
• Infrastructure
   
• Health
   

✅ Long-term vision: French actions are aligned with a strategy of sustainable reconstruction and strengthened cooperation.

✅ Opportunities for French businesses: It is time to invest in Ukraine without delay. Competitors are already present; Ukrainian society and its infrastructure are resilient, transparent, and ready to welcome investors.

Finally, the speakers emphasized the importance of a stronger European commitment, especially in the context of the global geopolitical landscape and the pressures on Europe regarding energy security.

A strong statement

"We are here, we are with you, we are here as partners," said Sébastien Surun, addressing the conference participants in Ukrainian.

Watch the conference

The full video of the conference is available here:  YouTube

Source : CCIFU

Key developments for Ukraine’s Reconstruction

• Ministry of Economy of Ukraine launches investment project collection for Ukraine Recovery Conference 2025 with support from Kyiv School of Economics

The Ministry of Economy of Ukraine, with the support of the Kyiv School of Economics, has announced the collection of investment projects in key sectors of the Ukrainian economy. Based on the results, a catalog of the most promising projects will be created and presented at the Ukraine Recovery Conference 2025 in Rome.

Objective

The main goal of this initiative is to help Ukrainian businesses gain visibility among international investors, establish partnerships, and secure necessary funding. According to Oleksii Sobolev, the combination of strong international support, prospects for EU accession, and global economic trends creates an optimal environment for investing in Ukraine. Additionally, the country’s reconstruction needs, backed by significant financial support, open substantial opportunities for investors.

Expected outcomes

• Investment project catalog – A selection of top projects in priority sectors.

• Presentation at URC 2025 – Direct exposure to international investors and financial organizations.

• Funding prioritisation – The catalog will serve as a roadmap for international financial institutions supporting Ukraine’s recovery.

The Kyiv School of Economics will coordinate work with businesses. The processing of received proposals will be carried out in partnership with leading consulting companies. The final list of projects is expected to be completed by mid-June 2025.

This initiative represents a crucial step in attracting foreign investment to Ukraine’s reconstruction and economic development.

Source: Ministry of Economy of Ukraine

International Benchmark

• European Commission and EIB Group commit €2 billion to Ukraine’s reconstruction

On March 6, at a forum in Luxembourg, the European Commission and the European Investment Bank (EIB) signed a guarantee agreement, allowing the EIB to invest at least €2 billion in Ukraine’s urgent recovery and reconstruction projects. This funding is part of the European Union’s €50 billion Ukraine Facility for the period 2024-2027.

Investment priorities

The allocated funds will support critical public sector projects across key industries, with a focus on:

• Energy infrastructure – strengthening Ukraine’s energy networks, upgrading power grids, expanding hydropower and renewable energy production, and enhancing energy efficiency.

• Transport and connectivity – modernising railways, improving urban public transport, and upgrading transport links, including the EU-Ukraine Solidarity Lanes and border crossing points along major export routes.

• Municipal infrastructure – restoring essential public services such as water and heating systems, public lighting, as well as renovating schools, hospitals, and higher education institutions.

Advisory support for effective implementation

To further support the implementation of EIB investments under the Ukraine Facility, the EIB and the Ukrainian government have also signed an agreement to deploy a team of advisory experts on the ground in Kyiv. This team will provide hands-on expertise to accelerate the planning and execution of critical projects and strategic initiatives.

This initiative is being carried out through a €20 million JASPERS advisory package for Ukraine, jointly financed by the European Commission and the EIB’s "EU for Ukraine" advisory programme in 2024.

This significant financial and advisory support underscores the EU's continued commitment to Ukraine’s recovery, fostering long-term resilience and stability in the country’s infrastructure and public services.

Source: EIB, Ministry of Economy of Ukraine

• European Commission launches call for proposals under the €50 Billion Ukraine Facility to support small businesses

The European Commission has announced a new call for proposals under Pillar II of the €50 billion Ukraine Facility, aimed at improving access to finance for small businesses in Ukraine. This initiative places a strong focus on companies affected by the war and vulnerable sectors, helping them recover and thrive during a challenging time.

Key priorities of the call

This call encourages partners to take on more risk and provide grants to businesses in war-affected areas. Key priorities include:

• War veterans, displaced persons, and returning refugees

• Vulnerable groups: special attention will be given to businesses led by women, youth, people with disabilities

• Micro-enterprises and start-ups

• Small-scale farmers

• Demining industry: the call also facilitates funding for the demining industry, enabling farmers and agribusinesses to participate in clearing landmines and creating safer conditions for agriculture.

Application details

The present call has a total indicative amount of EUR 1.6 billion in budgetary guarantees and blended finance grants. The deadline for applications is 22 April.

The call is open to eligible implementing partners under the Ukraine Facility Regulation, pillar assessed entities such as the international and European multilateral financial institutions, including the European Investment Bank Group, European Bank for Reconstruction and Development, International Finance Corporation, Council of Europe Development Bank, and bilateral financial institutions such as development banks and export credit agencies.

This call for proposals represents a crucial step in supporting Ukraine’s economic resilience and reconstruction. By prioritizing war-affected businesses, vulnerable groups, and key sectors, the European Commission aims to foster sustainable recovery and long-term growth

Source: European Commission, Ministry of Economy of Ukraine

• Norway supports Ukraine’s reconstruction through NEFCO with a €16 million funding commitment

Norway has pledged significant financial support to Ukraine’s reconstruction and green recovery through a contribution to NEFCO, the Nordic financial institution. The funding, amounting to 180 million Norwegian krone (approximately €16 million), will be directed toward energy efficiency projects across various sectors in Ukraine.

Focus of the funding

The funding will primarily target projects aimed at improving energy efficiency in Ukraine. Key areas of focus include:

• Renovation of schools and hospitals to enhance energy efficiency and overall functionality.

• Modernization of wastewater systems.

• Implementation of solar energy solutions.

Part of the funding has already been used for:

• Technical assistance for emergency housing projects to accommodate internally displaced persons (IDPs), a pressing need in light of the ongoing conflict.

• Preparation for constructing nearly zero-energy school buildings, which will not only improve the quality of education but also contribute to energy savings and environmental sustainability in the long term.

Upcoming projects and expected impact

The first three energy efficiency projects will soon be launched in Kozyatyn, Krasyliv and Ovruch. The projects are expected to save both heat and electricity, leading to significant savings for the communities' budgets. The likely savings in heat consumption are estimated at 52-70%, and electricity savings could reach 45%-60% compared to the figures before the projects were implemented.

This initiative is part of Norway's broader commitment to Ukraine's recovery, aligning with the Nansen Support Program, which has a budget of 205 billion Norwegian krone for 2023-2030. The program aims to bolster the resilience of Ukraine's infrastructure through reducing energy consumption.

Source: NEFCO

• EBRD joins with BII and Proparco to support Ukraine’s trade

The European Bank for Reconstruction and Development (EBRD) is collaborating with the UK’s development finance institution, British International Investment (BII), and the French development agency, Proparco, to bolster Ukraine’s cross-border trade.  This initiative aims to enhance Ukraine’s trade resilience by mitigating financial risks and ensuring a steady flow of vital goods and services.

Risk-sharing guarantees

BII and Proparco are providing risk-sharing guarantees for the EBRD’s Trade Facilitation Programme (TFP), which supports trade finance in Ukraine. Under this arrangement:

• BII is contributing up to US$ 37 million

• Proparco is providing US$ 20 million

These guarantees will help the EBRD share the risk on trade finance exposure in Ukraine, allowing the country to sustain international trade despite ongoing challenges.

Broader collaboration and impact

This partnership builds on a broader plan established last year by development finance institutions to co-invest in Ukraine’s private sector. It will help the EBRD support Ukraine’s trade by backing import and export activities, ensuring the country can continue trading with global partners and supply essential goods and services to its people.

About Trade Facilitation Programme

The EBRD’s Trade Facilitation Programme (TFP) plays a crucial role in stabilizing global and regional food and energy supply chains. Since the start of the war, the TFP has supported more than €1.4 billion in trade transactions for essential goods critical to Ukraine’s economy.

This ongoing support is instrumental in sustaining economic activity and ensuring the availability of necessary products for businesses and citizens alike.

Source: EBRD, Proparco

• Norway allocates additional funding to support gas imports to Ukraine

Norway has announced an additional financial contribution of 1 billion Norwegian kroner (approximately 85 million euros) to help Ukraine secure sufficient gas supplies for households, businesses, and industries. This funding aims to enhance the country's energy stability amid ongoing challenges.

Allocation and utilization

The new financial aid will be allocated through the European Bank for Reconstruction and Development (EBRD) and will be used to procure gas from Western sources. The recipient of the imported gas will be the Ukrainian state-owned company "Naftogaz."

Objectives

This gas supply will serve multiple critical purposes:

• Meeting immediate consumption needs.

• Strengthening gas reserves to mitigate risks in case of further attacks on Ukraine’s gas infrastructure.

Norway's commitment to Ukraine

The funding is part of the Nansen Support Program for Ukraine. With this latest allocation, Norway’s total contribution to Ukraine’s gas procurement since 2022 has reached 3.6 billion Norwegian kroner.

Through this continued financial support, Norway has played a crucial role in covering a significant portion of Ukraine's gas import needs since the beginning of the full-scale war. This commitment underscores Norway’s dedication to Ukraine’s energy security and resilience.

Source: Ministry of Foreign Affairs of Norwegia, EBRD

Focus on the private sector

• DTEK receives €11 million grant from France to build Ukraine’s first digital substation

DTEK, Ukraine’s largest private energy investor, has secured an €11 million grant from the French government to construct the country’s first digital substation.

Budget of the project

The project, which will incorporate GE Vernova technologies, has a total budget of €15 million, including:

• €11 million grant from the French government

• €4 million investment from DTEK

The construction of the digital substation is part of 19 projects approved in Paris under the €200 million Fund for Ukraine.

Project implementation and technology

DTEK Grids, responsible for project execution, will collaborate with GE Vernova Grid Solutions SAS. GE Vernova will provide advanced digital energy equipment and technologies that will allow real-time remote monitoring and diagnostics of the power grid. This will significantly improve the reliability of energy supply and substantially reduce electricity losses.

Construction timeline

Preparatory work for the construction of the substation has already begun, with full-scale construction set to start in the third quarter of 2025. Once operational, the substation will ensure stable and efficient electricity supply for more than 65,000 households and businesses in a region of Ukraine that has been affected by the war.

The digital substation is a key component of the broader “Grids of the Future” initiative, aimed at modernising Ukraine’s distribution networks with Smart Grid technology.

This project is crucial for Ukraine’s post-war economic recovery and long-term energy security, supporting the modernisation of the national energy grid and ensuring a more resilient and efficient power system for the future.

Source: DTEK

• Orano and Energoatom sign long-term agreement for uranium enrichment services

French company Orano and Ukraine’s national nuclear operator Energoatom have announced the signing of a major long-term commercial agreement for the supply of uranium enrichment services until 2040. The agreement was signed by Petro Kotin, Acting Chief Executive Officer of Energoatom, and Nicolas Maes, Chief Executive Officer of Orano, during an official ceremony attended by Jarek Niewierowicz, Chairman of the Supervisory Board of JSC "NNEGC Energoatom."

Key benefits of the agreement

• Reliable Supply: The contract guarantees Energoatom a secure and diversified supply of uranium enrichment services for nuclear fuel production.

• Future Growth: Supports Ukraine’s plans to expand its nuclear energy capacities.

Nicolas Maes stated that he was proud to support Energoatom in its development to strengthen Ukraine's energy independence. He emphasized that the agreement reflected Orano’s commitment to providing its customers with support and contributing to European energy security.

This agreement marks a significant step towards ensuring a stable and sustainable nuclear energy sector in Ukraine, reinforcing the country’s energy independence and long-term development in the field of nuclear power.

Source: Orano, Energoatom

• Podcast

Discover the 20th episode of season 2 of our podcast series dedicated to the resilience and reconstruction of Ukraine. In this episode, Sébastien Gobert hosts Sébastien Haulet, CEO of HK Courses, a French transport company that established operations in Ukraine in October 2024.

Key quotes from the episode:

"Investing in Ukraine before the end of the conflict is a visionary decision to avoid the economic scramble."

"Ukraine's reconstruction will offer exponential opportunities after the war."

Topics Discussed:

• Challenges and opportunities for a French SME in Ukraine
   

• The key role of transport in post-war reconstruction
   
• Administrative, fiscal, and logistical challenges
   
• The importance of preparing before the conflict ends to avoid economic chaos
   
• Collaboration with the Franco-Ukrainian Chamber of Commerce and future growth prospects
   

A testimony full of valuable insights for all businesses considering entering the Ukrainian market!

Link to the PODCAST