Three years after Russia’s full-scale invasion of Ukraine, there is still a critical need for funding to strengthen Ukraine’s business sector and infrastructure. Since 2022, IFU has contributed nearly DKK 550 million in financing, providing risk capital to private companies and supporting the rebuilding and modernisation of public infrastructure. The funding has primarily been provided via the Danish Ukraine Fund.
For more than two decades, IFU has actively invested in Ukraine, supporting over 60 companies throughout the country. This substantial commitment has remained strong and even grown, despite the greatly increased risks and extremely challenging conditions.
“Investments in Ukraine do not happen by themselves. The investment risk is high, and the willingness to invest in the private sector among other actors is limited. However, our extensive experience in the country and funds from the Danish Ukraine Fund have enabled us to continue and expand our efforts to benefit the country’s population and its resilience.”
Lars Bo Bertram, CEO of IFU.
Support for Danish companies in Ukraine
IFU’s general focus includes investments in renewable energy, food, healthcare and financing, including banks. In the past three years, DKK 180 million has been invested in Ukraine.
Among these investments are support for Danish-owned companies to maintain and develop their production. Additionally, IFU has provided financing to local small and medium-sized enterprises, which are crucial for securing jobs, export revenues, and tax revenues for Ukraine’s strained economy.
“The Danish companies in Ukraine have been persistent despite the invasion, and several have even managed to expand their production. We are pleased to help them and also satisfied that we can contribute financing to small and medium-sized local businesses,” says Lisbeth Erlands, Senior Vice President and Co-Head of Healthcare and Ukraine at IFU.
CEO Viktor Ivanitskyi of the Danish-owned company Danico Ukraine elaborates:
“Danico has been active in Ukraine for the past 25 years and has had a long-standing collaboration with IFU, which has allowed us to gradually expand our activities. After Russia’s full-scale invasion in February 2022, we experienced significant support from IFU. Among other things, we have received a new loan commitment from IFU’s Ukraine facility, which has enabled us to retain our customers and continue expanding our production.”
Support for district heating and water supply
Ukraine’s infrastructure is worn out and severely affected by the Russian invasion. Through Danida Sustainable Infrastructure Finance (DSIF), IFU has supported several projects across the country. These include, for example, the delivery and installation of a new container-based district heating system that produces heat for 180,000 residents. Additionally, DKK 52 million has been granted for two projects to restore and make the water supply in Mykolaiv more reliable and sustainable, benefiting around 70,000 consumers. In total, DSIF has allocated DKK 366 million to various projects across Ukraine.
“There is a very high demand and need to repair and modernise the infrastructure in Ukraine. DSIF has been able to support several projects that are beneficial both now and in the future, contributing to a more sustainable and future-proof infrastructure, which will be advantageous for Ukraine when the war is eventually over.”
Annemette Ditlevsen, Investment Director at DSIF.
Continued investments in 2025
In 2025, IFU will continue its high level of commitment to Ukraine, as the Danish Parliament has already allocated an additional DKK 100 million for the purpose. IFU has an office in Kyiv with two local employees who work closely with Ukrainian partners and Danish businesses.