Business news from Ukraine

Business news from Ukraine

Metal pre-detonation screens can protect bridges from drones and small missiles – UCSB

It is extremely difficult to protect a bridge from significant damage in the event of a direct hit by powerful ballistic or cruise missiles, however, properly designed pre-detonation screens are an effective means of protecting such structures from drones and small missiles such as the “Banderole,” noted Andriy Ozeychuk, director of the construction company Rauta and chairman of the board of directors of the Ukrainian Center for Steel Construction (UCSB), in comments to the “Interfax-Ukraine” news agency.

“The most effective structure for protecting the roadbed consists of metal cables with a mesh stretched between them,” he remarked, assessing the effectiveness of a number of engineering solutions to protect bridges across the Dnipro River from Russian strikes.

According to him, to protect the piers and the sides of the spans, spacers made of lattice steel structures must be used. This engineering solution can be quickly implemented using available materials. Metal pre-detonation screens provide high strength without placing a heavy load on existing structures, are easily adaptable to the individual geometry of bridges, can be quickly repaired in the event of localized damage, and can be reinforced if necessary.

The expert emphasized that it is important to make effective use of existing bridge structures as a substructure for attaching steel cables and mesh. For example, for the Northern Bridge, this could be the central cable support to protect the roadway, and for the Darnytsia Bridge, the sides of the roadway can be used as a base for the upper attachment of pre-detonation protection for the supports.

The Ukrainian Steel Construction Association (USCA)—a nonprofit organization registered in July 2013—brings together participants in the steel structure supply chain in the form of an association. USCA members include leading manufacturers and distributors of rolled steel, plants producing metal structures, roofing and facade systems, and light-gauge steel structures; industry-specific design, architectural, and scientific organizations; installation and construction companies; and providers of fire protection and anti-corrosion materials for steel structures, as well as software, equipment, and tools.

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Ukraine Needs to Develop Comprehensive Program for Protection and Resilience of Bridge Infrastructure – UCSB

Ukraine needs to develop a comprehensive program for the protection and resilience of bridge infrastructure; the foundation for this approach was laid as early as 2022, according to the website of the Ukrainian Center for Steel Construction (UCSB).

As explained by the UCSB, Ukraine developed the “Fortress Country” concept for the comprehensive protection of critical infrastructure facilities at that time, which was subsequently approved at the national level. It provides, in particular, for standard solutions for the protection of road and rail bridges.

“Today, it is important to implement these solutions as part of a systematic program for the protection of bridge infrastructure. Critical bridges must be assessed, priorities identified, appropriate design solutions developed, reserves of materials and structural components for repairs established, and the responsible organizations and procedures for responding to damage defined. Otherwise, we will always be reacting: first, damage occurs, then an inspection, a search for design solutions, materials, and contractors—and only then does restoration begin,” notes military officer Artem Bilyk, a member of the Coordination Headquarters for the Engineering Protection of Critical Infrastructure and a leading co-author of the “Fortress Country” concept.

According to him, this model is far too slow for critical infrastructure. We must act proactively, anticipate what the enemy might target, and protect the infrastructure’s vulnerabilities.

A comprehensive program should include at least five areas, such as: surveying and ranking bridges by criticality and the potential consequences of their damage; engineering protection of the most critical structural elements and facilities; organizational and technical measures, including surveillance, security, and countermeasures against drone and missile threats; preparation of reserves for rapid restoration: design solutions, materials, steel structures, and equipment; and the creation of a network of Ukrainian manufacturers capable of producing the necessary structures as quickly as possible and ensuring their installation.

A large-scale program for the engineering protection of bridges could have the added benefit of supporting the Ukrainian steel industry and manufacturers of steel construction products,” notes Andriy Ozeychuk, director of the construction company Rauta.

According to Bilyk, the top priority for bridges should be to identify the most critical elements of a specific structure and reinforce them, taking into account possible damage scenarios.

Depending on the structural design and operating conditions, various solutions may be applied: protective structures, gabion structures, concrete and other barrier elements, steel protective structures, and so on.

Another approach involves creating pre-detonation screens, which increase the distance between the explosion source and the main structural elements. Such solutions must be designed individually for each structure and should not pose additional risks to the bridge’s operation, the expert notes.

Metal-based solutions are best suited for protecting bridges. These can include lattice steel structures, metal mesh, and cables, or a combination thereof, depending on the bridge’s design and the required distance to the pre-detonation screen,” Ozeychuk clarified. He noted that high strength combined with low weight, along with the modular approach to creating protection from various elements, makes it possible to adapt existing metal products to the specific geometry of bridges, as well as to easily replace or reinforce structures locally.

Equally important is protection against secondary damage factors: fires, fragment damage, and damage to auxiliary systems. It is advisable to protect vulnerable elements of the bridge infrastructure with appropriate non-combustible structures.

As for alternative crossings, according to the expert’s assessment, it is extremely difficult to fully replace the existing city bridges across the Dnipro River with temporary structures. A temporary crossing must be integrated with road and rail infrastructure, have the necessary capacity, and meet safety requirements, explains Bilyk.

In addition, it is noted that a modern bridge is far more than just a means of road traffic. Bridge crossings can accommodate railroad tracks, subway lines, utility lines, pipelines, cables, and other systems. Therefore, a pontoon bridge or other temporary crossing can serve as a backup solution but is not a full-fledged replacement for the developed bridge infrastructure of large cities, according to the website.

As noted in the press release, the strategy should not involve choosing between a bridge and a pontoon, but rather creating a multi-tiered resilience system where a protected main bridge is complemented by rapid restoration capabilities and backup transportation solutions.

Source: https://uscc.ua/news/mosti-pid-udarom-comu-ukraini-potribna-sistemna-programa-ih-zahistu-ta-vidnovlenna

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Civil engineering has become segment with fastest-rising prices in Ukraine

The cost of construction and installation work on civil engineering projects in Ukraine in June 2026 rose by 24.3% compared to June of last year—the highest rate among the major construction segments. According to data from the State Statistics Service, nonresidential construction rose in price by 23.8% over the same period, while residential construction rose by 19.2%. On average across the construction industry, the increase was 23.1%.

Civil engineering also led the way in terms of monthly trends. In June, compared to May, prices in this sector rose by another 1.8%, compared to 1.3% in non-residential construction and 0.8% in residential construction.

In the second quarter of 2026, civil engineering and installation work cost 22.4% more than in April–June of the previous year. A similar increase—22.4%—was recorded in non-residential construction, while residential construction prices rose by 18.2%.

The quarterly trends are particularly telling. Compared to the first quarter, prices for engineering work rose by 12.4% in the second quarter, and for non-residential construction by 12%, while the residential sector saw an increase of only 0.4%.

According to Andriy Ozeychuk, owner and director of the engineering and construction company Rauta, the shortage of skilled workers remains one of the key factors driving up construction costs.

“The market is currently short about 30% of construction specialists,” Ozeychuk noted, commenting on the situation in the industry in February 2026.

According to his data, the labor shortage has already led to a noticeable acceleration in wage growth. While wages in the construction sector grew by an average of approximately 15–20% annually between 2022 and 2024, the growth rate reached 25–30% in 2025. Wages rose particularly sharply for concrete workers—by 50%, surveyors—by 44%, and concrete pourers—by 38%.

Thus, the current rise in the cost of construction work is not driven solely by prices for building materials and equipment. The cost of construction work itself and labor is playing an increasingly important role.

Ozeychuk also drew attention to the long-term nature of the labor shortage. According to him, vocational schools are facing both a shortage of students enrolling in construction programs and a high dropout rate as early as the first years of study.

“In the long run, this could lead to an even greater labor shortage and slow down Ukraine’s recovery,” says the owner of Rauta.

According to the company’s estimates, the labor shortage is already forcing the construction industry to seek workers outside Ukraine, particularly in India, Nepal, Bangladesh, and Pakistan.

The rising cost of civil engineering is of particular importance to Ukraine due to the massive need to rebuild energy, transportation, utilities, and other critical infrastructure. According to Rauta’s estimates for 2025, the segment of critical infrastructure restoration and protection already accounted for about 20% of the Ukrainian construction market.

Therefore, further increases in the cost of civil engineering work could directly impact the cost estimates for restoration projects. If the cost of construction and installation work rises by 20–25%, projects whose budgets were established much earlier may require additional funding or a revision of technical solutions and implementation timelines.

At the same time, non-residential and infrastructure construction remain among the most active segments of the market. In 2025, the main targets for investment in commercial real estate were warehouse, industrial, and retail buildings, while the most attractive regions for new construction were the Kyiv, Lviv, and Ivano-Frankivsk regions, Ozeychuk noted.

In the first half of 2026, civil engineering construction costs rose by 16.1% year-over-year, non-residential construction by 16.5%, and residential construction by 13.7%.

“Rauta” operates in the fields of design, construction, and installation of buildings and is a member of the European Construction Industry Association. According to data from the Unified State Register, Andriy Ozeychuk owns 100% of the company’s authorized capital.

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Ukraine’s Postwar Reconstruction Will Create Market Worth Over EUR500 Bln — Expert

Ukraine’s post-war reconstruction will create a massive market for the construction sector, industry, and related sectors; however, Ukrainian companies need to start preparing now to compete with international contractors, according to Andriy Ozeychuk, director of Rauta and chairman of the board of directors of the Ukrainian Steel Construction Center Association.

In his column for The Page, he noted that once the war ends, demand for construction will be significant from the general public, the government, and the business sector alike. According to estimates by the Ministry of Foreign Affairs, there are about 8 million Ukrainians abroad who fled during the full-scale invasion, and the UN forecasts the return of 3–3.5 million people once lasting peace and security guarantees are in place.

According to the expert, a significant portion of those who return, as well as internally displaced persons, will need new housing or the restoration of damaged homes. At the same time, reconstruction will not be limited to the housing stock. According to estimates by the Kyiv School of Economics, residential buildings account for only about one-third of the direct losses from the war, while significant losses were also sustained by transportation and energy infrastructure, corporate assets, industry, and the agri-industrial complex.

Ozeychuk notes that, according to World Bank estimates, Ukraine’s reconstruction will require more than EUR500 billion over the next decade. This is nearly three times Ukraine’s GDP in 2025 and creates significant opportunities not only for the construction sector but also for the entire economy.

In his estimation, every hryvnia invested in construction has a multiplier effect and stimulates 1.5 to 3 times greater growth in related sectors. Examples include the postwar reconstruction of Germany and South Korea, where the construction sector became one of the catalysts for economic growth.

The expert identifies the main sources of funding for large-scale projects as direct financial assistance from international partners—including the G7, the EU, and the U.S.—the attraction of large private investments backed by state guarantees, as well as reparations and confiscated frozen assets of the Russian Federation. Ukraine’s European integration should serve as an additional incentive, as it will eventually open access to specialized EU development funds.

At the same time, Ukrainian construction companies may already face stiff competition from European players. According to Ozeychuk, the most realistic scenario would be a consortium model in which a European general contractor would work alongside Ukrainian subcontractors and use local materials certified to European EN standards.

Under this scenario, foreign companies could be involved in high-tech work, while Ukrainian businesses would handle local logistics, specialized work, and the construction of utility networks, roads, and capital construction projects.

The expert identifies financing conditions as the main barrier for Ukrainian companies. While in Ukraine construction is often carried out using substantial advance payments, the EU commonly uses a post-audit payment model—based on the completion of specific project phases. This requires significant working capital, whereas Ukrainian companies have limited access to low-cost long-term loans.

To level the playing field, Ozeychuk believes the government should launch programs for affordable long-term loans backed by state guarantees, provide preferential financing for the modernization of Ukrainian building materials plants, simplify the adoption of EN standards, and advocate for Ukrainian businesses’ participation in international grant programs.

A separate challenge will be the construction industry’s transition to European design standards. By 2028, the Ukrainian system is expected to fully integrate into the European space and adopt Eurocodes. This will remove some barriers for foreign engineers but will also require Ukrainian specialists to rapidly upgrade their qualifications.

Among the technological trends in reconstruction, the expert cites BIM modeling, digital twins of buildings, energy-efficient solutions, and the concept of net-zero energy buildings. In his assessment, the market will shift toward rapid modular construction, eco-friendly materials, and innovative solutions.

Another key constraint will be a labor shortage. According to Ozeychuk, demobilized military personnel and men returning from abroad will only partially offset the labor shortage. High demand could lead to rising wages in construction, particularly for blue-collar jobs, and could also encourage the retraining of specialists from other sectors, as well as the more active involvement of women, veterans, and older workers.

In addition, Ukrainian companies are already beginning to collaborate with agencies that specialize in the official recruitment of construction workers from South Asian countries, including India, Nepal, Bangladesh, and Pakistan.

Ozeychuk believes that the two main principles of the future reconstruction are speed of implementation and the “Build Back Better” approach—that is, rebuilding to a higher standard than before the destruction. It is precisely these criteria that will determine the demand for modern materials, technologies, and production capacity in Ukraine.

Rauta is a Ukrainian company operating in the field of prefabricated buildings, facade and roofing systems, sandwich panels, and steel construction. The “Ukrainian Center for Steel Construction” Association brings together companies working in the segments of metal structures, building materials, design, and industrial construction.

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In 2025, consumption of steel structures in Ukraine increased by 19%

According to estimates by experts at the Ukrainian Center for Steel Construction, the market for steel structures in 2025 reached 108,000 tons.

Imports of steel structures increased 2.4-fold, while the domestic market showed a 3% increase.

Steel structures were actively used in projects to restore and protect critical infrastructure facilities, as well as in the construction of industrial and logistics buildings.

According to industry experts’ forecasts, the steel structure market could grow by approximately 9% in 2026 and reach about 117,000 tons by year-end.

“Following a sharp drop in demand for steel structures in 2022, we are seeing steady annual growth in consumption of 15–20%. However, we are still far from the 2021 figures, when the steel structures market reached 154,000 tons,” said Andriy Ozeychuk, director of the construction company Rauta and chairman of the board of directors of the Ukrainian Steel Construction Association (UCSA).

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Ukrainian Kovlar Group enters Moldovan market, plans to increase exports to this country

Ukrainian manufacturer of passive fire protection systems Kovlar Group is expanding its presence in the Moldovan market and expects to make this direction one of the first stable export channels for its products.

According to the company, it has been supplying fire protection products for engineering communications to Moldova for the past two years. Kovlar Group notes that there is virtually no domestic production of passive fire protection materials on the Moldovan market, so local partners are showing interest in Ukrainian systems.

The company specifies that regular technical meetings are held with Moldovan specialists to introduce the products, during which issues of fire protection system design, national regulatory requirements, and features of material application are discussed. According to preliminary agreements, the Moldovan side plans to purchase a significant part of Ammokote products.

The presence of Ammokote products on the Moldovan market is also confirmed by open specialized resources: in particular, the specialized platform Antikor.md features Ammokote products for fire protection of engineering communications with technical documentation and certificates.

Kovlar Group LLC was founded in 2015 in Kyiv and is the largest manufacturer of passive fire protection products in Ukraine. According to OpenDataBot, the company’s authorized capital is UAH 1.2 million, and its ultimate beneficiaries are Kostyantyn Kalafat (40%), Andrii Ozeychuk (35%), and Liubov Vakhitova (25%). The company’s revenue for 2024 amounted to UAH 91.37 million, which is twice as much as a year earlier, and its net profit was UAH 13.4 million, which is 1.7 times higher than in 2023. In the first quarter of 2025, the company’s revenue amounted to UAH 13.5 million, with a net profit of UAH 1.983 million.

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