Ukraine's Wartime Boom

Ukraine plans its reconstruction as a transformation of its economy and society, as to be seen in the green showcase municipality of Borodianka. In the energy sector, the formula is resilience and decentralization. The old power plants, often targeted by Russian air attacks, are being replaced by renewables such as wind turbines and battery storage systems. A corruption scandal touching the nuclear energy company “Energoatom” reveals the dark side of reconstruction-related crime. With the Danube boomtown of Izmail, a new export corridor for the agricultural industry is emerging. It is symptomatic of the economy’s shift westward. The most important pillar of reconstruction is the defense industry, with a startup drone industry turning Ukrainian resilience into an export story.

During the ongoing war, investing in Ukraine is a deterrent for foreign companies. They fear security risks, but also corruption cases like the investor scandal in Hostomel. Yet despite support from the international community, reconstruction needs private investors. Companies such as Fluence Energy develop remote solutions to mitigate war risks. How reconstruction is becoming part of geopolitical strategies is illustrated by more than 1,000 Turkish companies operating in Ukraine. They underline Turkey’s power ambition in the Black Sea region. The European Union lack a comparable strategy. Only the Danes have their own reconstruction model in the Mykolaiv region: “Copenhagen on the Black Sea” — a model for the future.