Business news from Ukraine

Business news from Ukraine

Volume of construction work completed in Ukraine over 8 months fell by 10%

The volume of construction work completed in Ukraine from January through August 2026 decreased by 9.9% compared to January through August 2025, according to data from the State Statistics Service (Derzhstat).

According to the statistical agency, the volume of construction output in January–August totaled 156.5 billion hryvnias.

According to the State Statistics Service, over the eight-month period, the volume of residential construction decreased by 3.8% compared to January–August of last year, nonresidential construction by 6.3%, and civil engineering structures by 13.7%.

In August 2026, compared to August 2025, construction volumes decreased by 3.7%, including residential construction by 2.3% and civil engineering structures by 12.2%. At the same time, construction volumes for non-residential buildings increased by 9.8%.

In August 2026, compared with the previous month, construction volumes increased by 12.9%; specifically, in the residential category by 0.2%, in nonresidential buildings by 25.3%, and in civil engineering structures by 8.8%.

According to the agency’s seasonally adjusted data, construction output indices in August 2026 stood at 62% for residential construction, 155% for nonresidential construction, and in civil engineering at 112%; taking into account the calendar-day effect, the figures were 63.1%, 156.5%, and 115.4%, respectively.

The share of new construction in the total volume of construction work completed in July was 44.6%, repairs—30.3%, and reconstruction and other work—25.1%.

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“Ukrzaliznytsia” will be able to allocate EUR 130 mln from EBRD loan toward infrastructure repairs and restoration

JSC “Ukrzaliznytsia,” in collaboration with the European Bank for Reconstruction and Development (EBRD), has approved amendments to the loan agreement for the “UZ Energy” project, which will allow EUR130 million from the previously approved EUR180 million loan to be allocated to support the company’s liquidity, specifically for infrastructure restoration and ensuring the transportation of passengers and cargo.

“Funds previously earmarked for the distributed generation project can now also be used for critical repairs, infrastructure restoration, and ensuring the transportation of people and cargo,” wrote Mykola Kalashnyk, Ukraine’s Minister of Recovery, Infrastructure, and Transport, on his Telegram channel on Wednesday following a meeting with EBRD President Odile Renaud-Basso.

According to him, the ministry is working to ensure that “Ukrzaliznytsia” gains access to the relevant funds as early as the first weeks of October.
Among other things, the project to build a 200-MW gas-fired power plant is continuing thanks to grant support from the EU and the United Kingdom, while “Ukrzaliznytsia” is carrying out the construction work on its own.

The minister also noted that the meeting included discussions on additional funding for the modernization of the locomotive fleet.
According to the ministry, since the start of Russia’s full-scale invasion, 550 locomotives have been damaged, with more than 335 of them damaged this year.

“Securing resources to replace and restore them is one of our top priorities,” Kalashnik emphasized.
Separately, the Ministry of Infrastructure discussed the development of international highway corridors and investments in roads—specifically, projects the ministry is implementing jointly with the Recovery Agency.

Other topics for discussion included the development of distributed thermal power generation, backup power supplies, and the protection of critical infrastructure.
Issues related to port concessions were also addressed, particularly the preparation of relevant projects; in this context, the ministry is counting on the EBRD’s expertise in drafting these projects and attracting international operators and investors.

“I would like to thank Odile Renaud-Basso and the EBRD team for their support of Ukraine and their willingness to tailor financing to our urgent needs,” added Ukraine’s Minister of Recovery, Infrastructure, and Transport.

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Autostrada founder Maksym Shkil reported that company continues to carry out all work at its sites

Autostrada founder Maksym Shkil reported that the company continues to carry out all work at its sites in accordance with the approved schedules, he wrote on Facebook.

“… Autostrada is helping to restore damaged infrastructure and protect facilities amid intensifying Russian attacks. We are doing everything in our power to protect people and critical infrastructure. We understand the difficult situation with public finances. Autostrada continues to carry out work at all sites in accordance with the approved schedules. We assume that the government will fulfill its obligations to the industry for work already completed once international financial aid is received,” reads the post by the company’s founder on Facebook.

Earlier, the Autostrada Group of Companies announced that it was suspending work at all sites in Ukraine due to the government’s suspension of capital expenditures.

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Ukraine and Romania Plan to Develop Border Infrastructure

Ukraine and Romania, within the framework of the Carpathian Economic Forum (C8 Summit), signed a memorandum of understanding based on an updated Strategy for the Development of Border Infrastructure between the two countries, which takes into account the needs related to the transportation of cargo and passengers.

According to a statement from Ukraine’s Ministry of Recovery, Infrastructure, and Transport, the document was signed by Minister Mykola Kalashnyk and Ionel Scriostanu, State Secretary of Romania’s Ministry of Transport and Infrastructure.
Under the memorandum, the countries are expected to work on modernizing and developing road border crossing points (BCPs) and access roads, strengthening rail connections, as well as simplifying border control procedures and expanding opportunities for transshipment of Ukrainian cargo in Romanian ports.

Among other things, there are plans to increase the throughput capacity of existing border crossing points and develop new routes; specifically, the updated Strategy identifies 17 border crossing points, 10 of which are new proposals.

“The signed memorandum outlines specific directions for this work. It is important for us to increase the border’s throughput capacity and create stable and predictable routes for Ukrainian businesses to the European Union and Romanian ports,” the press release quotes Ukraine’s Minister of Recovery, Infrastructure, and Transport as saying.

The ministry emphasized that the next step will be to move toward implementing the relevant projects and securing funding for their execution.

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Ukraine may transition to network of small warehouses instead of large logistics centers

According to Interfax-Ukraine, Valery Kirilko, CEO of the “Industrial Parks of Ukraine” group of companies, believes that one solution for changing Ukraine’s warehouse logistics model—given the enemy’s destruction of warehouse and logistics infrastructure—is to create a decentralized network of small warehouses, particularly within industrial parks.

“The war has shown just how vulnerable large distribution centers are. Therefore, we may need to partially move away from concentrating large volumes of goods in a single location and transition to a decentralized network of small warehouses,” –he wrote on Facebook.

According to his proposal, this could mean replacing a single large warehouse spanning tens of thousands of square meters with many smaller ones—ranging from 1,000 to 5,000 square meters—located in different regions and logistically convenient locations.

“That is precisely why we are currently developing the ‘HELP.Warehouse’ program. We are creating several standard designs for small warehouse complexes that can be quickly adapted to a specific plot of land and implemented simultaneously in different regions of Ukraine,” Kirilko noted.

He emphasized that the company is ready to take on the design of standard warehouse facilities, the search for and acquisition of land plots, matters related to utilities and infrastructure, the selection of construction contractors, the organization of construction, and the coordination of project implementation.

“With proper organization, such facilities can be built in approximately 3–5 months. And today, there is another important factor at play—the Ukrainian construction market is going through a challenging period. But that is precisely why many construction companies are willing to work with minimal profit margins, quickly assemble teams, and carry out projects at competitive costs,” he believes.

Kyrylko added that industrial park sites across Ukraine are being considered separately.

“Some of them are already prepared to provide land plots for such projects on preferential or even free terms during the initial period. We can begin restoring warehouse and logistics infrastructure right now,” he notes.

Kirilko invited those who are able to finance such projects—including those who own a land plot that can be leased free of charge for a year, industrial parks that can provide a small plot free of charge for a year, and construction companies acting as investors—to join the initiative.

The company “Industrial Parks of Ukraine” has been active in the development of industrial parks since 2019. According to its data, nearly one in three industrial parks established or registered in Ukraine is or has been supported by the company’s specialists.

According to information on its website, the company manages seven industrial parks, has developed 56 industrial park concepts, and has facilitated the registration of 37 industrial parks.

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Oschadbank Provided Lviv with 582.6 Mln UAH to Modernize Critical Infrastructure

Oschadbank and the Lviv City Council signed a five-year loan agreement for 582.6 million UAH to finance projects aimed at modernizing the city’s critical infrastructure, the financial institution announced on Friday.

“The new 582.6 million hryvnia loan will enable Lviv to continue upgrading its housing, utilities, and road infrastructure, modernizing its heat supply system, and strengthening energy security,” said Serhiy Chernikov, deputy chairman of Oschadbank’s board of directors responsible for corporate business.

It is noted that the funds will be directed toward nine critical infrastructure projects in the city.

Taking this new agreement into account, the total amount of loans provided to Lviv by Oschadbank over the past three years has reached 2.09 billion UAH: in 2024, the bank provided the city with 840.0 million UAH, and in 2025—668.0 million UAH.

Since the start of the full-scale invasion, Oschadbank has entered into loan agreements with Ukrainian municipalities totaling 7.8 billion UAH. As of August 1, 2026, the bank accounted for over 64% of municipal lending.

According to the National Bank, as of July 1, 2026, Oschadbank, with total assets of 518.87 billion UAH, ranked second among Ukraine’s 59 banks. The bank’s total loan portfolio grew by 6.7% in the first half of the year, reaching 136.83 billion UAH.

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