IFC has announced a series of new initiatives to support Ukraine’s private sector and accelerate reconstruction efforts. Unveiled at the Ukraine Recovery Conference, the initiatives aim to address critical financing needs, enhance energy security, and foster innovation in key sectors, including energy, and technology.
Ukraine’s private sector continues to demonstrate remarkable resilience despite the ongoing challenges of Russia’s invasion. As of May 2025, nearly two-thirds of firms were operating at full or near-full capacity. However, businesses continue to face security risks, labor shortages, and rising input costs. Achieving a full recovery will require a significant increase in private investment and productivity gains, alongside sound structural reforms and strong international support. As part of the World Bank Group, IFC is coordinating with the EBRD and other partners of Ukraine on reforms to support an economy that is ready for EU accession with the private sector at the center.
Today IFC announced an equity investment of up to €5 million in Flyer One Ventures Fund V, the first institutionally backed early-stage venture capital fund in Ukraine, alongside a €6.5 million equity investment from the EBRD. IFC’s commitment includes up to $3 million (or its euro equivalent) from Japan, through IFC’s Economic Resilience Action (ERA) Program. The fund will invest predominantly in early-stage Ukrainian startups across sectors such as enterprise software, EdTech, FinTech, and consumer technology. IFC’s anchor investment aims to accelerate the development of Ukraine’s venture capital ecosystem, help retain high-skilled talent, and attract additional private capital to the country’s technology sector.
IFC and the EBRD are also preparing to invest in private equity funds in the country. The two organizations are developing investable private equity initiatives with Ukrainian fund managers to mobilize capital, aiming to raise over €600 million across infrastructure, private equity, and venture capital sectors. These initiatives are expected to enable investments that modernize, expand, and improve products and services, sending a strong signal to global investors about Ukraine’s significant economic potential. The projects will help address a severe lack of equity capital, requiring financing beyond the scope of any single institution.
IFC and the European Commission (EC) announced their plans to sign a €105 million Better Futures Program (BFP): High Impact Equity Guarantee Program to support quasi-equity and equity investments in venture capital and private equity funds, as well as direct investments, along with technical assistance, to support critical sectors for Ukraine’s reconstruction and recovery. The equity guarantee is expected to enable more than €1 billion in total investment by the private sector and unlock much needed equity investments in Ukraine. IFC and the EC also plan to sign €17.5 million in Technical Assistance to support the €350 million BFP guarantee announced at the Ukraine Recovery Conference in 2024.
To help address Ukraine’s urgent energy needs, IFC is considering a new investment in OKKO Group’s second greenfield onshore wind power project in Ukraine. The project builds on the company’s first 147MW wind power plant, for which IFC committed a €60 million financing package. The project is currently undergoing due diligence and is pending IFC management and Board approval.
IFC, along with Scatec, FMO, Swedfund, and Ukraine’s Ministry of Economy, signed a Memorandum of Understanding to launch Power Women Ukraine, a hybrid training program aimed at addressing labor shortages in the country’s energy sector. The program will equip women with skills in green energy, leadership, and program management through online learning, field visits, and internships. The program is expected to start in Kyiv in August.
“Ukraine’s private sector has shown extraordinary resilience, and with the right reforms, its economic potential is immense,” said Alfonso Garcia Mora, IFC’s Regional Vice President for Europe, Latin America, and the Caribbean. “IFC remains firmly committed to supporting Ukraine’s recovery by mobilizing private capital, driving innovation, and advancing the country’s path toward EU accession.”
The World Bank Group has been at the forefront of Ukraine’s recovery efforts, providing over $78 billion in financing since the start of Russia’s invasion. This includes direct budget support, infrastructure rehabilitation, and targeted programs to strengthen social services and rebuild critical sectors.
Since February 2022, IFC has delivered $2.4 billion to support Ukraine’s private sector, including $908 million in mobilized financing. The Economic Resilience Action (ERA) Program for Ukraine is an operational framework for IFC’s near-term investments and advisory work to assist the Ukrainian private sector following Russia’s invasion. The response package includes financing at IFC’s own risk and blended finance support from multiple development partners to mitigate risk. For more on IFC’s ERA Program for Ukraine, see here.
MIGA, home of the World Bank Group Guarantee Platform, has played a key role by offering guarantees to mitigate risks for investors and lenders, helping unlock financing for critical projects. Since Russia’s invasion of Ukraine in 2022, MIGA has issued $448 million in new guarantees in the country. At the Ukraine Recovery Conference, MIGA announced €185 million in new guarantees for two projects aimed at strengthening Ukraine’s financial sector and improving access to finance for SMEs. Read more here.
These efforts are part of the World Bank Group’s response package, which has assisted more than 20 million Ukrainians by helping businesses stay afloat and enabling the government to provide essential services, pay wages, keep schools and hospitals open, and carry out critical repairs.
