Ukraine’s Energy and Infrastructure: Unlocking Strategic Investment Opportunities in the Post-War Era

Over the last two years we are witnessing how Ukraine’s energy and infrastructure sectors have transformed. The war has brought unprecedented challenges — but it has also created an historic opportunity to rethink, rebuild, and realign Ukraine’s economy in ways that were unimaginable even five years ago. Today, Ukraine is not simply rebuilding; it is positioning itself as a strategic gateway to the European Union and a laboratory for innovative investment models.

The scale of reconstruction ahead of us is immense. Yet it is precisely this scale that makes Ukraine one of the most compelling investment destinations in Central and Eastern Europe. Energy and infrastructure are at the heart of this transformation. They are not merely sectors for capital deployment — they are levers of resilience, integration, and growth.

Beyond reconstruction, Ukraine offers first-mover advantages in several emerging areas:

• Hydrogen and green exports: Ukraine is explicitly identified in the EU’s REPowerEU strategy as a future hydrogen hub.
• Localization of industrial capacity: From turbine towers to batteries, Ukraine’s industrial base offers fertile ground for joint ventures with European OEMs.
• Dual-use infrastructure: Many projects — in logistics, energy, and digital — carry both civilian and defense applications, aligning with donor priorities.
• EU accession trajectory: Integration into the EU’s single market and TEN-T corridors will unlock structural funds and preferential regulatory regimes.

Energy: Reshaping Ukraine’s Power System for the Future

Ukraine has some of the best renewable energy conditions in Europe. Wind resources alone exceed 70 GW, with 15–20 GW considered commercially viable in the short to medium term. Solar, wind, biomass, and emerging hydrogen opportunities further diversify the mix. In the aftermath of the war, renewable energy is not only a climate agenda — it is a national security imperative.

Equally important is the modernization of Ukraine’s grid and storage capacity. Ukrenergo’s roadmap for deeper integration with ENTSO-E envisions billions of euros in investment for new interconnectors, smart grids, and BESS solutions. These projects are highly relevant to international sponsors, particularly those aligning with EU decarbonization and energy security strategies.

Over the last year, the Government made important steps to streamline development of the energy projects such as extension of the grid connection agreements up to 6 years, introduction of capacity booking and cable pooling opportunities.

I addition to that, the President recently signed the law unlocking procedures for land allocation for energy projects which will allow the speed up the developments adding new gigawatts to the national portfolio.

At the same time hydrogen projects will require careful development as the legal scope for hydrogen projects in Ukraine emerges slowly. First draft law aimed to create legal framework for given projects is being developed by the expert community and is expected to be presented in the Parliament in Fall.

Infrastructure: Building the Foundations of Connectivity and Growth

Ukraine’s infrastructure needs are no less urgent. Rail, roads, and ports must be rebuilt and upgraded, not only to restore trade routes but also to accelerate EU integration. Ukrzaliznytsia’s plans to expand “Euro-gauge” corridors open opportunities for concessions and PPPs with European operators. Similarly, new logistics hubs, dry ports, and intermodal terminals are critical for ensuring uninterrupted supply chains to and from the EU.

At this point, our Clients already work for development of industrial parks and prepare for announced concessions of port infrastructure which are expect to be concluded by the end of the Year.

Ukraine’s updated PPP legislation, together with the evolution of Production Sharing Agreements in the energy sector, demonstrates a clear move toward internationally recognized models. For investors, this provides predictability, allocation of risks, and arbitration-friendly mechanisms.

As legal advisors, we place particular emphasis on treaty protections, compliance with ESG standards, and investor-state arbitration frameworks. LCF has represented both investors and public entities in structuring deals that not only comply with Ukrainian law but also align with EU directives and bilateral investment treaty protections.

Challenges and Risks: Managing the Realities

Of course, no discussion of Ukraine would be complete without acknowledging the risks. War-related disruptions, capital controls, and logistical hurdles remain part of the equation. But these risks are not insurmountable. With proper structuring — phased investments, risk insurance, and strategic partnerships — investors can mitigate exposure while positioning themselves for long-term returns.

Vast majority of strategic investors are reluctant to invest into CAPEX and construct the projects without solid back-up from politically-driven institutions and IFIs. Vast majority of investments are made by local stakeholders which are limited to withdraw cashflow from Ukraine due to the restrictions imposed by the National Bank.

At the same time, many foreign companies are moving quickly to position themselves for when the war ends, as they want to be first in line for opportunities.

The latter creates unique situation where the lawyers shall respond creating bankable transaction structures involving joint ventures, joint development and option agreements allowing international partners to secure the project rights without significant investments in the beginning of the transaction.

Ivan Bondarchuk, Partner, Head of Energy & Projects, exclusively for CEE Legal Matters.