ukraine as a market
Since February 24, 2022, Ukraine has been battling Russia's full-scale invasion. During the initial months, Ukraine’s gross domestic product (GDP) fell by nearly 30%. However, in 2023, economic growth exceeded expectations, with the National Bank of Ukraine (NBU) estimating annual real GDP growth at 5.7% (compared to an initial forecast of 0.3% at the beginning of 2023).
Despite this progress, key economic sectors remain severely impacted by the war. More than 420 enterprises have been damaged or destroyed by Russian shelling since the conflict began. The important industrial base in eastern Ukraine remains occupied by Russian forces.
Unable to achieve victory on the battlefield, the Russian military has targeted Ukrainian energy infrastructure, aiming to cripple the economy and intimidate the population. A significant portion of Ukraine's electricity generation assets has been destroyed, leading to frequent power outages in major cities. In 2024, the International Monetary Fund estimated that Ukraine's energy sector had suffered losses totaling $56.5 billion due to Russian attacks.
In response, Ukraine is actively restoring damaged and liberated areas, rebuilding roads and bridges, repairing energy infrastructure, and restoring damaged private and public buildings, including houses, schools, and hospitals. The massive influx of international aid and Ukraine's EU candidacy offer hope and direction, with the Ukrainian government working closely with EU institutions to further integrate Ukraine into the EU.
Historically, key sectors attracting Danish investment in Ukraine include energy, agriculture, and IT—substantial components of the Ukrainian economy. Contrary to expectations, many Danish companies have managed to maintain or even expand their operations in Ukraine. It’s important to note that Ukraine is a vast country, and much of central and western Ukraine has continued agricultural and industrial production despite the war.
The defence sector, driven by the demands of war, has become a pivotal player in ensuring national safety and security. The increase in global defence budgets and production is directly or indirectly linked to the war in Ukraine. While Ukraine's state budget and capabilities are still limited due to the ongoing conflict, and much military support comes from international donations, there remain significant opportunities for commercial cooperation and partnerships with volunteer funds. For instance, the rapidly growing defence tech sector has immense potential and will likely remain a key industry for years to come. Hundreds of businesses within Ukraine's tech sector are involved in the design and production of drones.
Being based in Kyiv enables the Trade Council staff to maintain direct communication with Ukrainian government representatives, allowing for efficient coordination with companies, international organizations, and system users. This includes navigating legal terms for entering special tenders, exploring opportunities for joint ventures with the state, and more—ultimately benefiting both Ukraine and its partners. Our strong partnership with Mykolaiv region and city offers a lot of opportunities for Danish companies. Colleagues from the Embassy office in Mykolaiv city will be pleased to help Danish companies with their activities there.
The Trade Council of Denmark in Ukraine stands ready to assist Danish companies with business development, export and investment financing advice, contact facilitation, and more.