November Business News from Ukraine

FINNISH-UKRAINIAN NEWS

Ukrainian PM visits Finland for reconstruction collaboration

Ukrainian Prime Minister Denys Shmyhal visited Finland in October, expressing gratitude for Finland's national reconstruction plan, which supports Finnish companies’ involvement in Ukraine’s rebuilding. Shmyhal met with Finnish leaders, including President Alexander Stubb, Prime Minister Petteri Orpo, and business representatives. Key cooperation areas include energy, construction, and education. Ukraine is exploring its Nordic partner’s expertise in renewable energy, energy-efficient construction, and civil protection, proposing Finland as a leader in an international civil defense coalition. Ukraine also aims to collaborate on digitization, 6G, health care, and environmental protection initiatives.

Source: eastcham.fi?

Finnish and German satellites assistance for Ukraine

On November 11, 2024, Finnish-Polish satellite operator ICEYE and German defense company Rheinmetall announced they would supply new radar satellite images to Ukrainian forces. This collaboration, which began in 2022, strengthens Ukraine’s ability to gather critical data. ICEYE provided its satellite data to Ukraine through a contract with the Serhiy Prytula Charity Foundation. In 2024, a partnership was formalized with Rheinmetall to expand access to the full ICEYE satellite fleet. This technology, which operates in all weather conditions, improves decision-making and planning for Ukraine’s military. Rheinmetall, a major supplier of arms and vehicles to Ukraine, continues to expand its support with new repair and production facilities.

Source: spacevoyaging.com

New Finnish player in defense technology

Summa Defence, a Finnish defense and security technology consortium, is actively engaging with Ukraine’s Brave1 cluster in Kyiv. Brave1, created by the Ukrainian government, connects stakeholders in the defense tech industry. Jussi Holopainen, CEO of Summa Defence (formerly CEO of Enersense), said, “We are exploring partnerships with local technical intelligence specialists to help strengthen Ukraine’s ecosystem.” Summa Defence aims to support smaller companies in Finland and Ukraine by providing resources for growth and development. Holopainen believes that even if the war ends, demand for national security products will continue for at least ten more years.

Sources: intelligenceonline.com, tekneekkatalous.fi

Helsinki to take away arena from Russian owners

The city of Helsinki is moving to seize ownership of its largest arena from Russian owners under sanctions. The arena, which has been closed since 2022, is owned by a company controlled by Russian-Finnish businessmen Gennady Timchenko and Roman Rotenberg. Helsinki officials announced in 2023 that they would initiate expropriation if the owners did not agree to sell. The arena’s closure has significantly impacted local businesses, with estimated annual losses of €402 million. Officials hope that reopening the arena will restore Helsinki’s ability to host international events. Both owners face sanctions, with Timchenko’s EU assets frozen and Rotenberg under U.S. sanctions due to close ties with Russian leadership.

Source: pravda.com

Finland takes an active part in modernizing schools

Finland is providing over €20 million to support education reform in Ukraine, with an additional €500 thousand specifically for school nutrition improvements. The initiative, announced by Finnish Minister Ville Tavio in Kyiv, aims to modernize Ukrainian schools, update educational standards, and ensure social support for students. From 2025 to 2028, Finland will collaborate with Ukraine's Ministry of Education to modernize secondary education. The reform includes a 12-year school system, with the first group graduating in 2030. Starting in September 2025, a pilot phase will test new educational models in selected schools. Psychosocial support will also be included to help students who have experienced stress caused by the war.

Souce: newsukraine.rbc.ua

ULIE’s Vice President at Finnbuild fair

Svetlana Kutseva, Vice President of the Ukrainian League of Industrialists and Entrepreneurs (ULIE), visited Helsinki in October. Finnpartnership invited Kutseva to meet Finnish companies and organizations involved in Ukraine's reconstruction. Kutseva met with construction companies at the Finnbuild fair and spoke about the peculiarities of tendering processes and legislation."We aim to be a one-stop-shop for business needs," she said. At the "Growth from Ukraine" event, she emphasized the importance of Finnish businesses engaging directly with Ukraine. "Ukraine needs hospitals, schools, and reliable energy," she reminded the audience. Kutseva also praised Finland’s expertise in corporate governance, which she believes will be crucial to Ukraine's future recovery. "Finland can help Ukraine become a global leader," she added.

Source: finnpartnership.fi

POLISH-UKRAINIAN NEWS

Electro Cable Group launches Polish plant

Electro Cable Group, one of Ukraine's largest non-ferrous metal producers, opened a cable production plant in Zabrze, Poland, in June, investing €19 million. The decision was driven by lower logistics costs to northern Europe, Poland's industry support, and assistance for Ukrainian refugees.?

The plant, which employs 55 people, has a production capacity of 1,200 tons annually. By July 2025, the company plans to increase output to 6,000 tons, aiming for €60 million in annual turnover. Electro Cable Group also operates factories in Zaporizhzhia and Ivano-Frankivsk in Ukraine.

Source: forbes.ua

Laude expands in Ukraine

Polish container rail transport operator Laude Smart Intermodal, which controls 33% of Ukraine’s container rail market, is expanding its presence despite ongoing risks from the war. Operating in Ukraine since 2013, with offices in Zaporizhzhia, Dnipro, and Vinnytsia, Laude plans to build a new terminal and introduce new services, including gas and fuel transport. The company’s Ukrainian operations generate 20-40% of its revenue. Despite losses in Mariupol in 2022, Laude now operates 1,500 platforms and 3,500 containers, some moved from the Russian Federation and rented from the Baltic states.

Source: pb.pl

Ukrainian startup Yard Delivery expands to Poland?

Yard Delivery, a Ukrainian startup, is transforming urban delivery by bypassing traditional sorting centers to speed up logistics and reduce costs. After launching in Latvia, the company plans to expand to Poland, Hungary, and Germany. Yard Delivery offers under-3-hour deliveries in urban areas by connecting businesses, customers, and couriers in a streamlined ecosystem. Couriers, working in a gig-economy model similar to Glovo and Wolt, pick up packages directly from stores or warehouses for faster service. Yard Delivery also integrates local parcel lockers, optimizing delivery routes and enhancing affordability.

Source: dlahandlu.pl

Ursus sold to Kyiv-based businessman for €17M

Ursus, Poland’s iconic tractor company, has a new owner after a third auction, sold for €17 million to MI Crow, linked to Ukrainian businessman Oleg Krot. Along with production facilities, the sale includes Ursus’s brand rights, machinery, and stock. Krot, known for his tech ventures, plans to preserve jobs, boost employment, and modernize operations. His vision for Ursus includes sustainable growth, corporate responsibility, and global expansion while honoring the brand's legacy and impact on local communities.

Source: businessinsider.com.pl

Polish companies cautious about starting up in Ukraine

While Ukraine’s reconstruction attracts Polish firms, only 10% have started operations there. With around 3,600 Polish companies now present, many remain hesitant until post-war. However, trade between Poland and Ukraine thrives. Over 30 thousand Ukrainian businesses opened in Poland in 2023, enhancing cross-border cooperation. Polish brands gain recognition, especially in consumer goods, as exports surge. PAIH, supporting Poland's business outreach, recently opened an office in Lviv to facilitate Ukrainian partnerships and help firms understand Ukraine's regulatory environment.

Source: pb.pl

Ukrainian Metinvest invests billions, raising concerns among Polish steelworkers

Metinvest, Ukraine's largest steel producer, invests approximately €270 million annually, with 2024 outlays expected to double. The company is modernizing its plants in Ukraine while constructing new green installations in the EU. These developments have raised concerns among Polish steelworkers, as Metinvest's growing presence could intensify competition. The first seven months of 2024 rose by 56% in steel imports from Ukraine to Poland, reaching 627,000 tons. Polish manufacturers are calling for protective measures to balance the impact of Ukrainian imports on the domestic market.

Source: pb.pl

Pracuj Group increases stake in Ukrainian websites

Pracuj Group has signed an agreement to raise its stake in Ukrainian companies operating Work.ua and Robota.ua. The total value of the transaction, which will not exceed EUR 7.14 million, involves acquiring 29.4% of shares in Gravitatciya-U TOV, which holds stakes in Robota International TOV (33%) and Work Ukraine TOV (67%). Following the deal, Pracuj’s share in Robota International TOV will grow to 76.7% (67% directly), and in Work Ukraine TOV to 52.7% (33% directly).

Source: bankier.pl

Polish ASEE Group acquires Ukrainian Askep.net

ASEE Group, part of the Asseco Group, has acquired Askep.net, a leading Ukrainian healthcare software provider. This marks the first M&A deal with a Ukrainian SaaS company since the full-scale invasion, signaling renewed investor interest in Ukraine. The acquisition allows ASEE to expand into medical technology, while Askep.net, serving over 4.7 million people in 500 medical institutions, gains access to international markets. The partnership aims to innovate medical technology, improve healthcare quality, and introduce global best practices in Ukraine and beyond.

Source: Aspe/LinkedIn

FOREIGN INVESTMENTS IN UKRAINE

Ukraine expands investment portal with 31 new projects worth €2.1 billion

On October 31, 2024, Ukraine’s Ministry of Economy, in collaboration with the Kyiv School of Economics and with support from the UK Government, expanded its digital investment portal by adding 31 new projects totaling €2.1 billion. These initiatives span various sectors, including energy, agriculture, machinery, transport, green metallurgy, and construction materials, across 13 Ukrainian regions. The portal now hosts 126 projects with a total value of €27.17 billion. The platform offers an interactive map, detailed project information, and funding support programs for investors and entrepreneurs.

Source: me.gov.ua

Green Flag Ventures will finance 6 Ukrainian startups in 2025

American fund Green Flag Ventures plans to finance up to six Ukrainian startups in the first half of 2025, focusing on defense and dual-use technologies. The fund, led by Justin Zeefe and Deborah Fairlamb, invests between €94,000 and €1.13 million per startup. By the end of 2024, they aim for 5-8 investments. So far, they’ve backed four startups: Himera (tactical communication), Kara Dag (UAV countermeasures), Swarmer (AI drone management), and Astra Nav (navigation). Additional investments are expected in battlefield management and anti-EW hardware. Green Flag plans to support 18-25 companies in total.

Source: ubn.news

Seeds of Bravery will fund 38 Ukrainian startups with €1.25M

The Seeds of Bravery consortium will award €1.25M to 38 Ukrainian startups across four key programs. Grants up to €50,000 will be given to startups in sectors like technology, healthcare, and agriculture. Notable recipients include AidSupply, Anima, and EDMAPS Ukraine under the Innovative Entrepreneurship and Deep Tech programs. This funding, part of the EU’s European Innovation Council, will help these companies scale, create jobs, and help Ukraine’s economic growth, particularly in the challenging post-war reconstruction period.

Source: Seeds of Bravery/LinkedIn

Saint-Gobain opens first gypsum mixes factory in Ukraine

International group Saint-Gobain inaugurated its first gypsum mix production plant in Ukraine. The company, previously an importer, is now a national manufacturer, handling the entire production cycle from raw material extraction to finished building materials. The €11 million investment in the plant, located in Ivano-Frankivsk region, will employ around 50 people and produce gypsum mixes under the Rigips brand. The plant's annual capacity is 60,000 tons. Local production will reduce transport costs, stabilize supply chains, and support Ukraine’s construction sector.

Source: Saint-Gobain Укра?на/LinkedIn

Ukraine's climate finance opportunities

Ukraine has significant opportunities to attract climate financing for its "green" recovery, according to the Minister of Environmental Protection and Natural Resources, Svitlana Hrynchuk. At this year’s COP-29 in Baku, Ukraine aims to strengthen its position in international climate discussions, focusing on securing climate finance for a low-carbon economy and ecological restoration. With a goal to achieve climate neutrality by 2050, Ukraine is engaging in partnerships and seeking access to international funds, including the Green Climate Fund. This is key to modernizing infrastructure and mitigating climate impacts exacerbated by the ongoing war.

Source: interfax.com

BUSINESS IN UKRAINE

Ukrainian businesses during the war

Despite the ongoing war, Ukrainian businesses are forging ahead with new openings. On November 2, retailer Varus launched its first supermarket in the Varus Home format in Bilogorodka, expanding its network in the Kyiv region. This marks the fourth store of this unique shopping concept, designed for everyday comfort. On October 31, Silpo opened a new supermarket in Kyiv, featuring a molecular cuisine concept with a science-themed design. Additionally, KFC debuted its first restaurant in Uzhhorod on November 1, marking the chain's 15th opening in Ukraine since the full-scale invasion began.

Source: ubn.news

Report: Ukrainian businesses invest in energy independence

Research by the EBA shows that 87% of Ukrainian businesses were affected by power outages this summer, with 67% suspending operations and 60% facing increased costs. As a result, 85% of companies have been investing in energy independence since 2022, with 30% spending over €182,000. Currently, 66% of companies have their own energy generation, including solar panels, energy storage, and alternative sources. Autonomous energy systems cover up to half of companies' needs, helping mitigate power shortages and reduce reliance on imported electricity.

Source: eba.com.ua (pdf)

OKKO Group launches large-scale recreation project in the Carpathians

OKKO Group has begun construction of the GORO Mountain Resort, a year-round resort located near the village of Volosyanka in the Lviv region. Taking nearly 1,200 hectares, the resort will feature 41 ski slopes, two gondola lifts, 25 hotels, and extensive recreational infrastructure. The first phase, spanning 127 hectares, is expected to be completed by 2028-2029, with investments totaling €1.38 billion.?

OKKO Group is funding €460 million of the project, with additional investments from other partners. The resort aims to attract both local and international tourists, positioning Ukraine as a European winter tourism destination.

Source: okko-group.com.ua

Nova Poshta sees strong institutional demand for bonds

Nova Poshta, a leading logistics operator in Ukraine, has reported significant interest in its bonds from institutional investors. The company is conducting a closed placement of bonds with a selected group of investors, though individuals can purchase them on the secondary market. According to Petro Fokov, the group’s financial director, pension funds alone have invested €13.8M.

Source: ubn.news

Ukraine's construction comeback

Ukraine’s construction sector grew by 37.1% from January to June compared to the previous year. Infrastructure projects led this growth, reaching 46.1%. These figures were reported by Ukraine’s Statistical Service. Residential construction also grew by 26.0%, while non-residential rose by 31.6%.

This recovery follows a difficult 2022, when construction fell by 64.8% due to the war. Infrastructure projects were hit the hardest. Although the residential building process has been slower to bounce back, repairs to damaged infrastructure are already underway. As Ukraine rebuilds, costs are expected to keep rising, with estimates already reaching €470 billion.

Source: eastcham.fi

Production is back on track, grew by 8.1%

Ukraine’s production industries are showing signs of recovery. In the first half of the year, industrial output grew by 8.1%, a hopeful sign for the country’s future. The manufacturing sector led the charge with an impressive 11% growth, while mining and electricity production also saw increases, though more modest. The production of building materials soared — bricks up nearly 50%, cement and concrete products by 25%. A report from the Kiev University of Economics in August revealed that Ukrainian production can't currently supply the construction sector with electrical switchboards, distribution cabinets, or glass. While some areas like wood and electrical equipment still struggle, the progress is being made each day.

Source: eastcham.fi

EVENTS & CONFERENCES

Spondeo's visit to the ReBuild Ukraine Construction & Energy 2024 Conference in Warsaw

Last week, we participated in the ReBuild Ukraine Expo in Warsaw. The conference focused on reconstruction efforts in Ukraine. Over 40 Finnish companies participated under the guidance of Business Finland, presenting solutions for infrastructure, energy efficiency, and sustainable development. An interesting highlight was the performance of a well-known Ukrainian rock band at the Finland Pavilion.

Several partnerships were formed during the event, although Finnish companies are still cautious about fully entering the Ukrainian market. Key challenges include operating in the public versus private sectors and deciding on entry points like Kyiv or Lviv. Interest is growing, however, as Finnish expertise aligns with Ukraine’s reconstruction needs, such as waste management and energy infrastructure.

Stay tuned, we will have interesting news for you regarding the market entry soon!

Still, the most important is peace.

Spondeo Team

Webinar on rebuilding Ukraine, hosted by Team Finland – ELY Satakunta and Robocoast EDIH Prizztech | 11 December, online

The webinar will take place online on December 11 at 14:00–15:30 (EET). It will cover Finnish-Ukrainian partnerships, EU funding opportunities, and strategies driving Ukraine’s rebuilding. Jyrki Rautam?ki of NEFCO, the Nordic Green Bank, will share how green funding supports sustainable growth in Ukraine, while Advicera's CEO, Yuri Kozik, will offer practical advice for business collaborations. Volodymyr Nochvai from NOSC-UA DIH will explore the role of European Digital Innovation Hubs in fostering impactful connections through technology.

The event is free and open to everyone.

More info and registration.

UN Global Compact Ukraine at COP29 | 14-16 November

During November 14–16, 2024, UN Global Compact Ukraine took part in COP29 in Baku. The main themes of discussion were sustainable development and energy reconstruction, practical ideas for rebuilding Ukraine. Besides, visitors touched topics of supply chain management, green energy, and how AI can play a role in climate action. Oksana Prosolenko from I.P.Cert, Maxim Timchenko of DTEK, and Viktoriia Savitska from Epicentr Group shared their stories and personal advice on international partnerships, how to find ways to fund clean energy projects. All panels were filled with ideas and real-life experiences aimed at creating a better future for Ukraine and the world.

More information here.

PROCUREMENT

Invitation for tender – Upgrade of district heating system in Vinnytsia

Opened: 08.10.2024

Closing: 21.11.2024

Link: NEFCO

Invitation for tender – Financial and environmental optimization of a part of the water supply system (Non-revenue water project for selected area of Mykolaiv city)

Opened: 15.10.2024

Closing: 25.11.2024

Link: NEFCO

Invitation for tender – Energy efficiency renovation of Oshora public school in Aspindza municipality and Uraveli school in Akhaltsikhe municipality

Opened: 01.10.2024

Closing: 20.11.2024

Link: NEFCO

Invitation for tender – Construction works on project “Capital repairs of individual heating substations and heating systems in public buildings of Kyiv”

Opened: 01.11.2024

Closing: 02.12.2024

Link: NEFCO

Solid fuel (hard coal)

Published: No info

Deadline: 19.11.2024

Link: Ukraine Tenders

Natural gas

Published: No info

Deadline: 19.11.2024

Link: Ukraine Tenders

Medical equipment and medical products

Published: No info

Deadline: 19.11.2024

Link: Ukraine Tenders

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