Investors Hopeful for Ukraine But Need Security, Deputy PM Says

Foreign companies are ready to invest in Ukraine’s devastated economy, but first need security guarantees from Kyiv, said the country’s First Deputy Prime Minister Yulia Svyrydenko.

Author of the article:

Bloomberg News

Alessandra Migliaccio and Volodymyr Verbianyi

Published Jan 22, 2025  •  2 minute read

Yulia Svyrydenko Photographer: Stefan Wermuth/Bloomberg Photo by Stefan Wermuth /Bloomberg

(Bloomberg) — Foreign companies are ready to invest in Ukraine’s devastated economy, but first need security guarantees from Kyiv, said the country’s First Deputy Prime Minister Yulia Svyrydenko.

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Ukraine has enough projects for potential investors, from reconstruction to the expansion of its defense industry, which Svyrydenko said grew sixfold last year. The country is also touting its deposits of raw materials, such as uranium, which could reduce the European Union’s dependence on China and Russia.

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While such projects in Ukraine are often insured, foreign companies are wary of investing due to military risks, Svyrydenko, who also serves as economy minister, told Bloomberg News at the World Economic Forum in Davos. She spoke in an interview following her meetings with business leaders at the summit.

As Russian forces advance in eastern Ukraine, the government in Kyiv is striving to keep the option of NATO membership on the table in a bid to deter future aggression by Moscow. However, Donald Trump, who began his second presidency this week, is a prominent skeptic of the idea.

“We are doing our homework. If you want to have business in Ukraine please make pressure on your government as well and please give your version of what the security guarantee is or can be,” said the deputy premier.

“They need a guarantee — like NATO membership, a military presence, troops on the ground, or other assurances that Russia won’t attack again,” Svyrydenko said. “If it’s not NATO, then anti-missile systems are needed to protect industrial zones and cities.”

Last year in the US, Svyrydenko met with companies such as BlackRock, Citi, Bayer, Logistics Plus, PwC, Bank of America, Baker Hughes, Siguler Guff and others. 

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She said that discussion with business leaders has shifted from expectations of Ukraine’s economic collapse at the start of the invasion to a more optimistic outlook, as the economy has grown for two consecutive years and is projected to expand by 2.7% this year. In 2024 it advanced by 3.6%, according to the Economy Ministry. 

Now those businesses ask not why they should invest in Ukraine, she said, but what guarantees they have if they choose to. 

Another big challenge facing Ukraine’s economy is an extreme labor shortage, which alongside the disruptions caused by energy outages Svyrydenko said is a “top, top priority” for Ukraine to resolve to attract investment.

About 5 million Ukrainians have fled the country, primarily to Germany, Poland, and the Czech Republic, according to Svyrydenko’s estimates. At the same time, Ukraine is continuing a large-scale mobilization campaign to counter Russia’s invasion.

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