Current news on Rebuild Ukraine topic

First Auctions Announced for Agricultural Land Demining at Farmers' Requests

The Humanitarian Demining Center has announced tenders for the procurement of agricultural land demining services based on applications submitted this year. The first three auctions will take place on the Prozorro system in the first half of March 2025, according to the Ministry of Economy's press service.

Following the auctions, the final price proposals will be determined, and contracts will be signed with the winning bidders. The expected cost of clearing 472.4 hectares is 28.1 million UAH. The auctions will follow the classic English auction format, with three rounds to lower the starting price.

"The cost of demining per hectare depends on the level of land contamination. For example, on the largest declared area for demining in the Kharkiv region (392.1 ha), leftover munitions have been found. Clearing such areas is less expensive compared to locations with landmines or unexploded ordnance. Factors such as contamination levels, terrain type (including slope angle), vegetation presence, and its type influence the final cost of work," said Volodymyr Baida, Director of the Humanitarian Demining Center.

The compensation program for agricultural land demining has been operational since September last year. The state covers 100% of the demining costs for agricultural land that is yet to be cleared and 80% of the costs for demining conducted between February 24, 2022, and April 15, 2024. The budget for this year allocates 1 billion UAH for compensation under the program.

Since its launch, 47 contracts have been signed for demining over 9,000 hectares of farmland.

Online Auctions on Prozorro.Sale Have Generated Over UAH 45.6 Billion Since the Invasion

Since the start of the full-scale invasion, online auctions on the state electronic trading system Prozorro.Sale have generated over UAH 45.6 billion for organizers. This amount comes from more than 61,200 successful auctions conducted over three years. Prozorro.Sale plays a crucial role in enabling the state and local communities to attract funds transparently and openly. As a result of these auctions, the value of public assets has increased by more than 1.5 times.

Nearly UAH 18 billion of this sum was earned by communities and the state through privatization, with auction winners paying for assets that contributed to budgets at various levels. Other significant revenue sources during martial law include the sale of assets from liquidated banks, which raised over UAH 7.8 billion, and bankruptcy estate auctions, which helped organizers attract more than UAH 6.6 billion.

Key Auction Categories

• State and Municipal Property Lease: Nearly 20,600 signed agreements, representing almost a third of successful auctions since February 24, 2022.
• Land Auctions: Over 19,300 completed auctions.
• Railway Car Leasing: Since the full-scale invasion, Ukrzaliznytsia has leased out almost 6,500 railcars.

Auction Organizers and Regional Performance

Approximately 6,200 organizers have announced public asset auctions during martial law. Local governments were responsible for more than half of all successful trades, generating nearly UAH 5.7 billion from selling and leasing real estate, equipment, vehicles, and land. The most active municipal organizers were in:

• Kyiv region – over 3,200 successful auctions
• Lviv region – nearly 3,100 auctions
• Odesa region – more than 2,700 auctions

Competitive Bidding and Future Revenue

During the full-scale war, nearly 66,300 participants competed for public assets. The highest competition was observed in railcar leasing auctions, averaging four bids per auction. High demand was also noted for:

• Privatization assets
• Land auctions
• Special permits for subsoil use
• Assets of bankrupt banks

As of February 24, 2025, the system holds approximately 2,600 online auctions with identified winners. Once contracts are signed, these deals could bring organizers an additional UAH 1.6 billion.

Ukraine is preparing to launch the Finnish-Ukrainian Investment Fund for Reconstruction and Strengthening of the Economy.

On February 26, the Verkhovna Rada of Ukraine adopted the law "On the Ratification of the Framework Agreement between the Government of Ukraine and the Government of the Republic of Finland on Projects Funded by the Finnish-Ukrainian Investment Fund (FUIF)." The grant portion of the agreement, amounting to no less than 35%, will be covered by the Finnish side, as stated by the Ministry of Finance.

“Ratification of the agreement will allow for the attraction of funds from the Finnish side under the Finnish-Ukrainian Investment Fund program," explained the Ministry.

Thanks to this agreement, important projects that will help in the reconstruction and strengthening of Ukraine's economy will be funded. The FUIF program provides for the granting of concessional loans to finance projects aimed at the socio-economic development of Ukraine. Concessional loan terms will be ensured by the grant component of the fund. Grants will be used to service loans (full coverage of interest payments by the Finnish side) as well as to repay part of the principal loan amount (the amount will be determined individually for each project within the grant component). Meanwhile, Finland's export credit agency, Finnvera Plc, will provide 100% guarantees for the loans.

Canada will provide Ukraine with tens of millions of dollars for energy restoration and investment in the defense industry.

Canada is providing $50 million to Ukraine, which will be directed toward supporting "urgent efforts" to repair and replace damaged energy equipment and critical infrastructure. Last year, Canada already provided $20 million for these purposes. The Canadian government also announced new aid measures for Ukraine totaling $118.5 million, which will be allocated to restoration projects, humanitarian assistance, and more.

At the same time, Canada is allocating $40 million for the "Danish model" of financing Ukraine's defense industry. These funds come from the overall $3.02 billion outlined in a security agreement signed by the two countries last year. Additionally, Canada will provide $15 million to support Canadian companies seeking to work and invest in Ukraine’s defense sector.

Since the beginning of Russia's full-scale invasion in February 2022, Canada has allocated over $19.7 billion in multi-faceted assistance to Ukraine.

Meanwhile, Lithuanians have raised over €5.6 million for Ukraine. Sixty-six percent of the funds will be directed toward the purchase of drones and anti-drone systems made in Lithuania, with the remaining funds going toward systems made in Ukraine.

Gas Purchases, Renewable Energy, and Electricity Market Integration: The EU to Assist Ukraine in Rebuilding Its Energy System

The European Commission has proposed a new aid package aimed at accelerating Ukraine's energy market integration with the European Union (together with Moldova). This includes full integration of Ukraine's electricity market with the EU by spring 2027 and an acceleration of investments in renewable energy, increasing its capacity by 1.5 GW.

The EC will provide assistance in financing gas purchases, particularly through the Ukraine Facility mechanism, in cooperation with partners. This will help create sufficient gas reserves to ensure supply security. The new measures are based on the EU's support exceeding €2 billion provided over the past three years to enhance Ukraine's energy system resilience.

"For three years, Russia has tried to plunge Ukraine into darkness, relentlessly attacking its energy infrastructure. This must be put to an end. With the support package, Europe will ensure a resilient and competitive energy system for Ukraine. The increased share of renewable energy and full integration of energy markets will strengthen energy security for both Ukraine and the EU," the European Commission added.

The War Has Not Halted the Mergers and Acquisitions Market in Ukraine, But It Is Transforming Its Priorities.

The increase in overall activity among international investors last year in the mergers and acquisitions (M&A) market may provide an additional boost for incoming investments into Ukraine. Despite the war and the associated uncertainty, Ukrainian enterprises have demonstrated a drive for growth through diversification and international expansion, contributing to the maintenance of economic activity.

One of the key factors driving domestic deals is the accumulation of capital by Ukrainian enterprises, which requires investment opportunities. Along with the implementation of mechanisms for insuring war risks and government initiatives for infrastructure restoration, this creates favorable conditions for the development of the M&A market.

Against the backdrop of moderate economic recovery, with GDP growth reaching approximately 3.6%, there was a certain relative stability in the M&A market last year. The number of deals was the same as in 2023 (49 deals), and the disclosed total value was approximately $1.1 billion. Privatization efforts, which generated a record income of ₴12 billion ($300 million) in 2024, indicate that the Ukrainian government aims to attract strategic investments in the future.