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through 2033 is estimated at $12-15B. Ukraine has deposits of 22 out of the 34 minerals identified as critical by the EU. Ukraine is among the top ten producers of titanium, zirconium, graphite, and manganese. These factors create prerequisites for developing the production sector of processing critical materials in Ukraine and developing product production based on them.
Foreign investors return to Ukraine and plan to invest in the most attractive industries. In the second quarter of the year, economic activity in Ukraine increased for the first time after a catastrophic 29% reduction in 2022. One of the reasons for the turnaround is that Ukrainian enterprises have become accustomed to life in wartime conditions. Companies that are ready to take some risk are entering the market. The Chicago Atlantic company is preparing to invest up to $250M in the country. Investors are returning to Ukraine, attracted by the opportunity to help the country in its struggle with the Russian Federation and to buy assets cheaply. The company plans to partner with Ukrainian developers or provide them with loans to construct affordable housing and invest in long-term industrial projects. Also, German company Bayer has started expanding its seed plant near Kyiv with a project worth more than $60M, and Nestlé began building a factory in Volyn in May. Currently, investing in Ukraine is associated with some challenges. Bomb shelters are mandatory for new construction projects. And to make Ukraine more attractive to investors, effective war risk insurance is needed.
Ukraine anticipates a logistics investment project worth more than $500M. State agency UkraineInvest will support Terwin's new investment project to build logistics hubs with a total area of one million square meters. Construction is planned in four regions of Ukraine (Odesa, Lviv, Dnipropetrovsk, Kyiv). First phase of construction in the Odesa region has already begun. "This is an innovative project with renewable energy sources, full cycle waste processing and disposal, and complex infrastructure, with the possibility of further expansion to $1B," according to a statement. As stated by Terwin founder Ruslan Shostak, there is a shortage of 500,000 square meters of warehouse space just in the Kyiv region and the same amount of deficiency throughout Ukraine. UkraineInvest will provide information, consulting, and organizational support in preparing and implementing their projects. It will also promote effective interaction between investors and state authorities. The government’s investment law provides state support to Ukrainian and foreign investors with a total investment of €20M or more.
A French state-owned company will insure business investment in Ukraine, and enterprises seek to localize production. Ukraine's Economy Minister Yuliya Svyridenko said: "We are discussing potential tools for Ukraine's recovery, including war risk insurance, to enable French investors to enter Ukraine and join reconstruction projects." French state insurance company Bpifrance Assurance Export has already announced that it will insure French companies that are ready to invest in Ukraine before the war's end. The first such French enterprises will soon receive these guarantees, allowing them to expand their enterprises in Ukraine. "French companies are ready to localize their facilities in Ukraine and produce their equipment at our factories. I am convinced that this interest will only grow," said Svyridenko. French business is interested in investing in strategically important sectors of Ukraine, such as defense, production, and processing of agricultural products, renewable energy, gas production and storage, green metallurgy, ecological transport, health care, and pharmaceuticals.
62 UKRAINE Country Report December 2023 www.intellinews.com