Ukraine Invasion: An Opportunity for International Investors
- Quentin Bottéon
- Oct 13, 2025
- 4 min read
Introduction
February 22, 2022, Russia launches its invasion plan in Ukraine. Missiles hit the capital Kyiv, Kharkiv at the border separating both countries and other remote cities as Odessa. Dead people are counted in thousands and today, the war is still occurring, with different new actors participating in different ways. If the majority of the population think that Russia is more powerful and should emerge victorious, occidental hedge funds will also be able to benefit from the critical situation in Ukraine, with the condition that the war ceases.
European politicians and the United States looking for peace in the region
Ukraine asked NATO to participate in financial aid to Ukraine and negotiation with both fighting countries. France and other European countries met Zelenskyy several times, to discuss about Ukraine’s future after the war. The European Union invested several billion of euros in Ukraine to restore critical infrastructure hit during the war, maintain essential public services and ensure macroeconomic stability. Over time, we noticed that the President of the United States started to take the lead regarding the mission to cease the war, especially when Zelensky and Trump met at Pope Franci’s funeral and Emmanuel Macron, President of France, got rejected from the meeting. Later, Donald Trump multiplied calls with Putin to make pressure on him and try to find a way to halt the war.
Ukraine becoming a hot spot for investments…
If the region remains unstable, as Russian drones keep destroying Ukrainian cities, several groups shared their idea to invest in Ukraine. Larry Fink, CEO of BlackRock, met Volodimir Zelenskyy for the first time in September 2022, to discuss the transfer of public and private investments into the Kyiv, the capital of the country. Two months later, they signed a memorandum confirming BlackRock’s plan. The asset management firm is not the only corporation that is interested in investing in Ukraine. Nestlé announced a $43 million investment to open a production facility in the West region of the country. The private investment arm of the World Bank, the International Finance Corp., followed the trend, launching a $2 billion package to support the Ukrainian private sector, and Tattarang Group will partner with other private investors to rebuild Ukraine primary infrastructure. However, several risks remain important and deter investors to operate in the country.
… but with risks for investors
The most important risk that deter investors to operate in Ukraine is of course the current military threats that affect the country every day. These threats are posing significant pressure on businesses that are facing production’s interruptions and supply chain’s disruptions. This situation can generally affect the country’s economy.
Another risk seems to become increasingly important, that relates to insurance. The elevated risks due to the current situation make investments in the country unaffordable for some companies. Confirming insurance claims and collecting evidence became also difficult.
Indeed, property damage or business interruption caused by shelling or sabotage can be difficult to assess and settle with insurers. Also, access to damaged sites can be restricted for safety reasons, and insurers could impose stricter conditions or exclusions for war-related losses. These risks can really p ush investors to rethink their investment strategy.
Kingspan Group : A typical case
Kingspan Group is an Irish company, specialized in materials construction, for real assets projects. With more than 200 factories and 22 000 employees around the world, the company generates 1 billion of dollars of revenue per year. One year after Russia invading Ukraine, Kingspan Group decided to invest around 280 million of dollars to build a brand-new building technology manufacturing campus in Lviv, despite being attacked by Russia today. The factory building is expected to create 700 jobs and should be completed within 5 years.
It is interesting to mention that Ukraine helps companies to invest in the country. A new promotion investment agency, called Ukraine Invest, has been created and focuses on Ukraine long-term recovery. This company helps investors on the legal part, for instance, by creating or updating laws to provide more incentives, such as lower taxes, expanding the types of projects that can be eligible or simplifying issues regarding land rights. This opportunity for the Ukrainian company needed marketing campaign to get known and favour investments made in the country.
Conclusion
The war in Ukraine totally reshaped the region, still under Russian military threats and attacks. Many cities have been destroyed and this situation represents an opportunity for international investors to rebuild through fundings. Some companies are also interested in setting up a factory. If Ukraine seems to be a great opportunity financially, it is not without risks. The region is still under Russian pressure and this situation does affect businesses already implanted and creates an increase in insurance costs, making investments less profitable for several actors.
References:
Moran. (2022). The Epoch Times. Zelenskyy, BlackRock announce new investment initiative to rebuild Ukraine.
O. Savchuk. (2024). 20 Integrites. Securing Ukraine: how political risk insurance can help investors.
J. Geron. (2024). Al Jazeera. Zelenskyy says US, Europe must work together to secure Ukraine peace.
Center for Preventive Action. (2025). War in Ukraine.
L. Gozzi. (2025). BBC. Next time in Moscow? Five takeaways after Trump and Putin’s Alaska summit.
P. Lausberg. (2025). European Policy Centre. Beyond the Ukraine Facility: De-risking private investment to reconstruct Ukraine and strengthen Europe.
E. Perozo. (2025). Investment Monitor. The paradox of foreign investment in conflict zones.
Kingspan. (2025). Kingspan breaks ground on €280m building technology manufacturing campus in Ukraine.
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