Foreign investment and financial support to Ukraine by EU countries under martial law
Abstract
Before the full-scale russian invasion in 2022, Ukraine was actively working to improve the investment climate and integrate into European economic structures. However, the war significantly changed the situation, posing new challenges for foreign investors. The purpose of the study is to analyze foreign investment and financial assistance to Ukraine by European Union (EU) countries under martial law, identify the main trends and challenges, and explore opportunities for attracting investment in strategic sectors of the Ukrainian economy.
The study analyzed the dynamics of foreign direct investment (FDI) into Ukraine by countries around the world and the EU in 2015–2024. It was determined that the peaks of investment fell on 2019 and 2021, the outflow of capital investments – on 2015, 2020 (in general and from the EU) and 2022 (from the EU). In 2023–2024 there was a gradual recovery of foreign investment. The dynamics of FDI from EU countries had almost identical dynamics to their total volume, except for 2017. The share of FDI from EU countries in the total amount of FDI is extremely large – 76.91% in 2024.
The largest total volume of FDI for 2022–2024 to Ukraine was observed from eight EU countries: Cyprus, the Netherlands, Luxembourg, France, Austria, Poland, Hungary, Denmark. At the same time, the total volume of FDI from four EU countries for the same period was negative: Finland, Portugal, Slovakia, Germany.
Taking into account the financial assistance to Ukraine in war conditions, the program of financial support to Ukraine from the EU for 2024–2027 in the amount of 50 billion euros – Ukraine Facility, which is aimed at supporting macro-financial stability, economic recovery, and reforming key sectors, was noted. Significant military assistance to Ukraine was provided by Germany, Poland, France, the Netherlands, Sweden, Italy, Denmark, Spain, and Finland.
Downloads
References
Ukrinform. (2025). The EU became the largest financial donor to Ukraine in 2024. Retrieved from https://www.ukrinform.ua/rubric-economy/3944339-es-stav-najbilsim-finansovim-donorom-ukraini-u-2024-roci.html#amp_tf=%D0%94%D0%B6%D0%B5%D1%80%D0%B5%D0%BB%D0%BE%3A%20%251%24s&aoh=17383884643659&csi=1&referrer=https%3A%2F%2Fwww.google.com&share=https%3A%2F%2Fwww.ukrinform.ua%2Frubric-economy%2F3944339-es-stav-najbilsim-finansovim-donorom-ukraini-u-2024-roci.html [In Ukrainian]
Ukrinform. (2025). The EU allocates 1 billion euros for defense research, taking into account the experience of the war in Ukraine. Retrieved from https://search.app/9jE4uMhJutHSUcVZ9 [In Ukrainian]
Matsuka, V. M. (2024). Mechanism of attracting foreign investments in the economy of Ukraine. Effective Economy. 1. http://doi.org/10.32702/2307-2105.2024.1.38 [In Ukrainian]
Nechyporuk, O. V. (2023). The problem of attracting foreign investment in Ukraine during the war. Economy and Society. 54. https://doi.org/10.32782/2524-0072/2023-54-6 [In Ukrainian]
Savchenko, M. V., & Piziuk, O. O. (2023). Foreign direct investments from the European Union in the economy of Ukraine: current state and trends of involvement. Economic Bulletin of Dnipro University of Technology. 2. 59–68. https://doi.org/10.33271/ebdut/82.059 [In Ukrainian]
Fraiier, E., Lishchynskyi, I., & Lyzun, M. (2024). The impact of international aid and direct foreign investment on economic growth in Ukraine. Journal of European Economy. 23(3). 397–412. Retrieved from http://nbuv.gov.ua/UJRN/jee_2024_23_3_4 [In Ukrainian]
Khoma, I., & Vorobiy, Kh. (2024). Investing in Ukraine during the war and prospects for investment processes in the postwar period. Galician Economic Journal. 86(1). 84–89. https://doi.org/10.33108/galicianvisnyk_tntu2024.01.084 [In Ukrainian]
Shatska, Z. Ya., & Kozlovets, M. M. (2024). Current state and development prospects of foreign investments in Ukraine during the war. Market Relations Development in Ukraine. 7–8. 24–29. https://doi.org/10.5281/zenodo.13952987 [In Ukrainian]
National Bank of Ukraine. (2025). External sector statistics. Retrieved from https://bank.gov.ua/ua/statistic/sector-external [In Ukrainian]
Härtel, A. (2023). EU Actorness in the conflict in Ukraine: between 'comprehensive' ambitions and the contradictory realities of an enlarged 'technical' role. Ethnopolitics. 22(3). 271–289. https://doi.org/10.1080/17449057.2022.2028421
Horska, E., Moroz, S., & Palkovic, J. (2023). Determinants of export activities in Ukrainian regions in the pre-conflict and the first-stage conflict periods. Entrepreneurial Business and Economics Review. 11(1). 181–198. https://doi.org/10.15678/EBER.2023.110110
Copyright (c) 2025 FINANCIAL AND CREDIT SYSTEMS: PROSPECTS FOR DEVELOPMENT
This work is licensed under a Creative Commons Attribution 4.0 International License.
