Billions in support for business development and job creation in Ukraine

The funding will be channelled through the Ukraine Fund, which is managed by Norfund, the Norwegian Investment Fund for Developing Countries.

‘The Ukraine Fund is Norway’s most important civilian contribution to increasing economic activity and job creation in Ukraine. Ukraine needs investors who are willing to take a chance. There is a significant shortage of the type of risk capital that the Ukraine Fund can provide,’ said Minister of Foreign Affairs Espen Barth Eide.

The purpose of the Ukraine Fund is to channel capital to businesses and infrastructure projects that play a central role in the reconstruction and long-term development of the country. The ongoing war has severely constrained investment activity and the Ukrainian economy.

‘The Ukraine Fund is an important instrument because it contributes both to the development of sustainable business activity and to the realisation of investments that otherwise would not have been carried out due to the high level of risk,’ said the Minister of Foreign Affairs.

Since the Government decided in 2024 that Norfund would manage the Ukraine Fund, Norfund has been working to build a dedicated investment portfolio. The Ukraine Fund has already made four investments with a total value of more than EUR 46 million (NOK 500 million), and several additional investments are expected to be announced during the year.

To date, the Ukraine Fund has invested in:

• the expansion of the M10 industrial park in Lviv, which facilitates increased trade with the EU;
• the Rebuild Ukraine Fund (REBUF), which provides growth capital to Ukrainian SMEs;
• the Horizon Capital Catalyst Fund (HCCF), which among other things contributes to financing a 124 MW wind farm in the Odesa region;
• the modernisation of the Yarych biscuit factory in the Lviv region, helping to secure jobs and create a foundation for increased exports.

The scale-up plan for 2027 to 2030 provides for a transfer of NOK 750 million (EUR 70 million) in 2027 and NOK 1 billion (EUR 90 million) in 2028, 2029 and 2030.

‘We have made a strong start in investing in the development of Ukraine’s business sector, and we are experiencing strong demand for the capital we are able to offer. The scale-up plan provides the predictability that is essential for us to plan our future work in Ukraine together with existing and new partners,’ said Erik Sandersen, Chief Executive Officer of Norfund.