Swedfund strengthens Ukraine’s resistance
Introduction
Ukraine has shown strong resilience since Russia’s full-scale invasion in 2022. Despite the serious consequences of the invasion for the population, society and economy, Ukraine has shown great endurance. However, the reality is that recovery and reconstruction must take place in parallel, and the need for long-term investment remains high.
Economic resilience during an ongoing war
Ensuring long-term economic resilience is crucial for Ukraine’s recovery and future development. In 2025, Ukraine’s GDP grew slightly, mainly driven by consumption and investment in critical infrastructure. Growth is constrained by weak agricultural exports, damaged energy infrastructure and labour shortages. Unemployment of 12 percent is the lowest since the start of the war, but recruitment remains difficult due to mobilisation into the Ukrainian armed forces and emigration as a result of the war. The private sector plays a key role in economic resilience through job creation, access to goods and services, export revenues and the government’s tax base. This requires a long-term perspective and access to capital.
As a development finance institution, Swedfund has a special role to play in this complex context. The ability to act long-term despite high levels of risk makes Swedfund’s efforts particularly important.
Capital for growth and job creation
In 2025, Swedfund invested in MHP SE (MHP), a key player in Ukraine’s food system and a leading producer of poultry and sunflower oil. MHP employs over 30,000 people, more than 40 percent of whom are women. This investment helped secure jobs and maintain tax and export revenues, which is key to Ukraine’s economic resilience.
During the year, Swedfund also invested in three additional investment platforms focused on strengthening Ukraine’s economic resilience. Swedfund invests in infrastructure, digitalisation, innovation and companies in essential sectors. Investing in companies that contribute to increased productivity and technological development in a market with limited access to labour creates conditions for a more inclusive labour market, including the reintegration of veterans into the workforce.
Support for skills and sustainability
Through the granted funds for technical assistance, we are working to strengthen sustainability efforts and impact in the portfolio company Scatec, which operates solar farms in central Ukraine. The Power Women programme addresses both the acute labour shortage and the need for greater gender equality in the energy sector. The programme offers women training in operating and developing renewable energy parks, a sector with a high demand for labour as a result of defence mobilisation. The programme includes technical training, paid internships, career development support and a professional network.
Infrastructure for long-term construction
Alongside investment in the private sector, we support the development of critical infrastructure in the public sector through the Project Accelerator. Ukraine’s reconstruction needs are vast, with investment requirements estimated to exceed EUR 500 billion over the next decade. Project Accelerator initiatives prepare the ground for future investment by offering technical advice, building a basis for decision-making and enhancing the capacity of public actors.
One example is an ongoing project in the Poltava region aimed at strengthening Ukraine’s energy security and reducing greenhouse gas emissions. Since the start of the war, Russia has repeatedly targeted heat and electricity generation facilities, significantly reducing the country’s installed electricity capacity. The project aims to provide the documentation required to procure and finance a combined heat and power plant with solar energy and a battery storage system.
Project Accelerator initiatives also support Ukraine’s digital infrastructure. The war has caused extensive damage to telecommunications infrastructure in large parts of the country, however, the need for stable connectivity is crucial for both public services and business. Ukraine is working to increase 4G coverage and the overall objective of the ongoing project is to optimise how mobile frequencies are allocated between operators. The initiative aims to maximise socio-economic benefits and promote inclusive digital connectivity throughout the country.
By combining investment in the private sector with project development that strengthens essential infrastructure, we are contributing to Ukraine’s recovery here and now, whilst laying the foundations for long-term economic development and resilience. In 2025, Swedfund set up a regional office in Kyiv. With a local presence and continued close cooperation with Ukrainian and international partners, we intend to remain an active and long-term actor in Ukraine's construction.