Business news from Ukraine

Business news from Ukraine

Income of Ukraine’s top construction companies grew by 41%

Nine companies from the top ten made a profit last year.

According to the OpenDataBot 2025 Index, the total income of the leading construction companies amounted to UAH 49.49 billion. This is 41% more than in 2023. The top three leaders have remained almost unchanged for three years in a row. Nine companies from the top ten managed to make a profit last year. Half of the top companies are engaged in the construction of roads and highways.

The top ten construction companies in the OpenDataBot Index 2025 earned over UAH 49 billion in revenue. This is 41% more than in 2023. The combined profit of the leaders grew 1.6 times to UAH 3.09 billion.

The lion’s share of the top companies’ revenue comes from five companies specializing in road construction: 75% or UAH 36.9 billion.

Four other companies are engaged in the construction of residential and non-residential buildings, with a more modest contribution of 20% of revenue. One company in the ranking operates in the narrow field of exploratory drilling.

For the third year in a row, the top three leaders in the Construction Industry Index have remained virtually unchanged. The absolute leader is Avtomagistral-Pivden from Odesa, owned by Oleksandr Boiko. In 2024, the company earned UAH 13.2 billion (27% of the total revenue of the top companies), which is 1.6 times higher than in 2023. Profit reached a record 1.36 billion UAH.

In second place is Vinnytsia-based Avtostrada, owned by Maksym Shkil. The company earned 10.8 billion UAH (+30%) and increased its profit 1.6 times to 74.6 million UAH.

The company notes that Avtostrada is one of the ten largest donors to the Ukrainian Armed Forces, having transferred more than UAH 2.1 billion since the start of the full-scale war. The company is actively involved in the reconstruction of critical infrastructure, including water pipelines and energy facilities. It is also one of the largest taxpayers in its industry.

Third place went to Rostdorstroy in Odesa (Yevgeny Konovalov and Yuri Schumacher). The company increased its revenue by 15% (to UAH 6.85 billion), while its profit fell by a quarter.

Onur Construction International from Lviv (owned by Turkish entrepreneurs Cetinjeviz Onur and Ihsan) climbed to fourth place. Its revenue grew by 30% to UAH 3.82 billion, and its profit almost tripled to UAH 418 million.

Fifth place went to a newcomer to the Index, Atelier de France Kyiv, a company engaged in the restoration of architectural monuments. Its revenue grew 6.4 times to UAH 2.9 billion, and its profit tripled (UAH 44 million). The owner is Frenchman Antoine Courtois, Philippe, Marie.

Ferrostroy from Poltava returned to the Index after a year’s hiatus, increasing its revenue 1.7 times to UAH 2.62 billion and its profit 2.6 times to UAH 298 million. The company is engaged in the construction of buildings.

Kosul (part of Rinat Akhmetov’s SCM Group) lost a quarter of its revenue and four places in the ranking, falling to seventh place with UAH 2.6 billion. At the same time, its profit grew by 8% to UAH 758.8 million. This company accounts for a quarter of the earnings of the top ten companies.

Vladimir Vypyrail’s Kyiv Energy Construction Company showed the largest profit growth — 8.8 times (to UAH 16.9 million), although its revenue fell by 6% to UAH 2.3 billion.

Techno-Bud-Center (Andriy Yarema and Yuriy Khanin) is another newcomer. Revenue grew 1.6 times to UAH 2.2 billion, and profit grew 1.5 times to UAH 26 million.

Vesta-I, which was headed by a new owner in March 2025, Tajik citizen Karimi Asolat Ismatzoda, showed a fourfold increase in revenue (UAH 2.2 billion), but instead of profit, it reported a loss of UAH 1.9 million.

Who dropped out of the Index?

So, in 2025, the following companies left the rating:

  • Solaagro, which changed its type of activity.
  • Natural Resources (the Pinchuk family) — revenue decreased by 15%, but profit increased to UAH 656 million;
  • Kyivmiskbud — revenue fell by half (904 million UAH), but the company finally moved into the black;
  • Monolit Budservice — figures remained almost unchanged over the year, but stability was not enough to make it into this year’s top ten;
  • Ukrhydroenergobud — despite an increase in revenue to UAH 2.03 billion, the company ended the year with a loss (UAH –61 million).

https://opendatabot.ua/analytics/index-construction-2025

Dry port built on Ukrainian-Romanian border

The multimodal terminal of the Fiska-Nov company will be launched in the territory of the Hlybotska community (Chernivtsi region), near the border with Romania, the community’s press service reported.

“The launch of this terminal will be an important step in the development of transport infrastructure, increase the transit potential of the region, and contribute to economic growth at both the local and national levels. In addition, its location near the border with Romania gives it strategic importance for transportation between Ukraine and the European Union,” the community said.

The facility’s infrastructure includes six railway tracks and special equipment that allows for transshipment between Ukrainian 1,520 mm gauge and European 1,435 mm gauge railcars. The terminal will also accept cargo by road. The purchased and installed load cells are designed to ensure accurate weight control of cargo during loading and unloading.

The Fiska-Nov company plans to create about 100 new jobs.

Oleg Nivievsky, Chairman of the Center for Food and Land Use Research at the Kyiv School of Economics, praised the community’s initiative on Telegram, which took advantage of the feasibility study developed by KSE in 2023 for the construction of a dry port on the border with Poland.

“The result was quite unexpected but pleasant — such projects are economically viable even without state support. Why is this important? Because improving and increasing the capacity of communications with the EU is a kind of insurance against a ‘crazy’ neighbor. In other words, it is something that can be supported with taxpayers’ money, but here the result is that everything looks good without support,” the scientist summed up.

https://interfax.com.ua/

 

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Construction costs have doubled since start of war – opinion

Since the start of the full-scale invasion, the cost of housing construction in Ukraine has increased by 90-115% depending on the class of housing, and the trend continues, Vladimir Zhigman, construction director of the DIM group of companies, told the Interfax-Ukraine news agency.

Since the beginning of the year, the cost in the “comfort+” segment has increased by 17% to $850-1000/sq. m. The reasons for such a significant increase are not only the rise in the cost of building materials, but also a systemic shortage of personnel and a crisis in the supply of key items.

“Today, only 40-50% of pre-war workers are employed in construction. Some have left, some are in the Armed Forces. There is a shortage of qualified welders, crane operators, high-altitude workers, special equipment operators, and even ordinary laborers,” Zhigman explained.

According to him, to overcome the labor shortage, companies are raising wages, attracting contractors from other regions, and in some cases from abroad.

As for building materials, the estimated average price increase from the start of the full-scale war (February 2022) to May 2025 is between 40% and 60%. For example, concrete has actually doubled in price due to higher fuel costs, logistical difficulties, and a 30-40% reduction in production capacity compared to pre-war levels. The cost of drywall has increased by 35-45%, influenced by higher raw material prices, particularly gypsum, and rising energy costs.

The cost of plaster has also increased by 30-40% in approximately the same range. This is due to higher prices for cement and fillers, as well as increased energy costs. Tiles have also jumped in price by 50-60%, mainly due to import dependence, higher logistics and energy costs. At the same time, according to DIM analytics, the share of imported building materials in an average project has actually doubled: from 12-14% in 2021 to 23% in 2023 and almost reached 25% in 2024.

“Most elevators on the market are imported, as are ventilation systems and electrical equipment. Add to this logistics, exchange rates, and risks, and we have the answer to the question of upward dynamics,” Zhigman noted.

In 2024-2025, developers will increasingly rely on optimizing technical solutions, smart design, and transparent communication with buyers. In an industry where production costs are already close to market prices, this is becoming a matter not only of profitability but also of survival, the expert explained.

“Rising costs have become the new norm. The question is no longer whether prices will rise, but how to remain competitive without compromising on quality and pace,” commented Arseniy Nasirovsky, junior partner at DIM Group, whose words are quoted in the report.

According to him, in 2025 and beyond, the key competitive advantages for developers will be flexibility in design, forecasting of logistical risks, and systematic work with contractors. “The market is entering a phase where it is not the biggest but the most efficient that will win,” Nasykovsky believes.

The portfolio of the development company DIM consists of real estate in Kyiv and the region with a total area of over 900,000 square meters. 3,670 apartments have been commissioned, and over 356,000 square meters of residential and commercial space has been built. Six projects with a total area of over 346,000 square meters are under construction.

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Construction of tunnels on China-Kyrgyzstan-Uzbekistan railway route has begun

In the Suzak district of the Jalal-Abad region of Kyrgyzstan, construction has officially begun on major railway facilities for the China-Kyrgyzstan-Uzbekistan railway.

As part of the construction of this railway, three tunnels with a total length of over 10 km are planned to be built, including: Tunnel No. 1 Naryn (Jaman-Dawan) – 12.5 km; Koshtoba (Kazarman) tunnel – 13.2 km; Fergana mountain tunnel – 12.2 km. The total length of this railway project is 532.53 km.

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Uzbekistan to begin construction of $10 bln gas chemical complex

Large-scale investment projects in the chemical industry are planned in the Khorezm region of Uzbekistan, which are expected to transform this industry into one of the key drivers of economic growth in the region. This was announced by the press secretary of the President of Uzbekistan during a meeting in the Urgench district.

This year, the first phase of the construction of a $10 billion gas chemical complex will begin in the Tuprakkalinsky district, which will use MTO (methanol-olefin) technology. Upon completion of the project, the complex will annually produce 14 types of basic polymer products with high added value and a total capacity of up to 2 million tons.

The project was first announced in March last year during the Head of State’s visit to the region. At that time, Shavkat Mirziyoyev held a working meeting with the leadership of the Ministry of Energy, Uzkimyosanoat, and a large foreign investment company, whose name was not disclosed.

It was expected that the future production facilities would be able to produce up to 2.5 million tons of products per year and create about 3,000 jobs. The project is scheduled for implementation in 2024–2028.

In addition, a 10-hectare chemical technology park will be created in the Khazarasp district, where projects worth $100 million will be implemented for the production of polymer products.

Special attention was paid to the region’s construction industry. Last year, 663 enterprises in Khorezm produced building materials worth about $86.6 million. To further develop this segment, 40 new projects with a total value of $100 million are planned for implementation in 2025, which will increase production to about $118.1 million.

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Ukrainian construction industry in early 2025: statistics, trends and forecasts

In 2025, Ukraine’s construction industry is showing signs of recovery and growth, despite the ongoing challenges posed by the aftermath of military operations and economic instability. Below are the key aspects of the current state of the industry and forecasts for the near future.

Statistics and current indicators

GDP from construction: According to Trading Economics, in the fourth quarter of 2023, the GDP from construction in Ukraine reached UAH 42,540 million, which is a historical high. The forecast for the end of the first quarter of 2025 is UAH 44,029 million, with further growth to UAH 46,899 million in 2026.

Residential construction: In 2024, 1.41 million square meters of housing was built in Kyiv, accounting for 14.5% of the total volume in the country. Kyiv region is the leader with 1.95 million square meters (19.9%). Lviv region is also active with 1.06 million sq m (10.9%).

Key trends

Restoration of infrastructure: Active restoration of damaged infrastructure continues, especially in the eastern and southern regions. In Zaporizhzhia region, more than 600 residential buildings will be restored in 2025, and another 200 are planned by the end of the year.

Rising prices for construction materials: In 2024, prices for basic construction materials increased significantly due to logistical difficulties, rising energy prices, and inflation. In 2025, prices are expected to rise further, although stabilization is possible if logistics improve and local production increases.

Demand for energy-efficient and modular buildings: Ukrainians are increasingly choosing energy-efficient homes that help reduce heating and electricity costs. In 2025, houses with solar panels, insulated facades and autonomous energy supply systems will remain popular. Demand is also expected to grow for modular houses, which can be built quickly and at a relatively low cost.

Government support: The eHouse program continues to stimulate demand for housing. In 2024, the program provided UAH 14.6 billion in mortgage loans, up 66% from 2023. In 2025, funding in the amount of UAH 18 billion is planned.

Digitalization of the industry: In 2025, construction companies will be more actively implementing BIM modeling, drones for facility monitoring, and digital project management platforms, which will help reduce costs and improve the quality of work.

Main challenges

Shortage of skilled workers: Mass migration has led to a shortage of skilled workers. Companies are looking for ways to attract workers, including raising salaries and training.

Bureaucratic difficulties: The process of obtaining construction permits continues to be time-consuming. Simplifying the regulatory framework could have a positive impact on the market.

Financial risks: High inflation and hryvnia volatility may slow down the pace of construction. Companies are looking for new financing mechanisms, including cooperation with international investors.

Forecasts for 2025

Rising housing prices: According to forecasts, in 2025 the cost of housing in new buildings may increase by 15-25%, especially in large cities. This is due to rising construction costs, inflation, and high demand for new buildings.

Regional development: Kyiv, Kyiv and Lviv regions are likely to remain the leaders, but Zakarpattia and Ivano-Frankivsk regions may increase their share due to tourism and demand from internally displaced persons.

Investment and competition: Attracting investment and increasing the competitiveness of construction companies will be key factors in the development of the industry. Companies able to quickly adapt to changes and optimize processes will gain an advantage in the market.