Russia’s full-scale invasion of Ukraine has led to immense destruction and loss, creating an urgent need for private investment to rebuild infrastructure and revive economic activity. In September 2024, the Norwegian government tasked Norfund with investing in Ukraine through the Nansen Support Programme, with the aim of contributing to the country’s long-term recovery and resilience.
About
The Ukraine Investment Fund was established in 2024 and received its first capital injection of NOK 250 million. Drawing on Norfund’s experience investing in high-risk and frontier markets, the Fund focuses on commercially viable projects that support job creation, promote economic stability, and rebuild critical infrastructure. By mobilizing private capital into sectors essential for recovery, the Fund addresses market gaps and helps lay the foundation for sustainable growth.
Strategy
The Fund deploys capital through debt, equity, and quasi-equity instruments, with investment sizes typically ranging from USD 5 to 30 million.
Its investments concentrate on four priority areas:
- Renewable Energy: Supporting the reconstruction and expansion of Ukraine’s energy sector through investments in renewable power generation and distributed energy solutions.
- Financial Inclusion: Strengthening financial institutions to improve access to affordable finance for SMEs, entrepreneurs, and underserved populations.
- Scalable Enterprises: Investing in private equity funds, agribusinesses and manufacturing to drive industrial development and employment.
- Green Infrastructure: Financing sustainable waste management, water supply, and wastewater treatment to rebuild essential public services.
All investments follow Norfund’s principles of commercial soundness, development impact, and responsible business practices, and are developed in collaboration with Norfund’s sector teams and local partners to enhance quality and manage risks.
Progress
Since launch, the Ukraine Investment Fund has progress:
- Presented three investment proposals to Norfund’s investment committee.
- Built a pipeline of potential investments far exceeding the fund´s available capital, across target sectors.
- Established a dedicated team with on-the-ground and sector expertise.
- Built networks with on-the-ground partners, international co-investors, and stakeholders.
- Formalized partnerships with local institutions to support deal sourcing, due diligence, and monitoring.