We are investing USD 10 million in the Ukrainian biscuit manufacturer Yarych to support the company’s continued growth. 

The company employs around 500 people at its production facility in the Lviv region in western Ukraine, close to the EU border – an important advantage for maintaining exports.

“Yarych’s impressive development in recent years, despite the war, reflects the strength and commitment of its management, entrepreneur and owners. Supporting strong teams and helping solid companies grow further is a key part of Norfund’s investment approach,”

Anastasiia Andriievska

Project Manager at Norfund

Yarych produces biscuits and crackers for both domestic and European retailers. Like the Marie and Petit Beurre biscuit, long-established global classics that are now produced in a large number of countries across the world. The company has increased its exports in recent years, mainly to Poland, which have become an important source of stability for the business. 

“We are pleased to welcome Norfund as a partner at this important stage of Yarych’s development. This investment is a strong signal of confidence in Ukrainian business and in the resilience of our team. It will support further expansion into new product categories and continued growth in both Ukrainian and export markets,”

Tetyana Shermolovych

CEO of Yarych

The investment will support modernisation and upgrades at the factory, including the introduction of a new pretzel production line, enabling the company to expand into new product segments. 

“With this investment, we are not just supporting growth. We are supporting people whose livelihoods depend on this factory continuing to run, even amidst a full-scale war,” says Andriievska. 

With more than 40 years of operations, the company has built a solid position in the Ukrainian market and as an exporter, where exports have been key to sustaining operations, supporting jobs and enabling continued growth. 

The Ukraine Fund, managed by Norfund, is investing NOK 174 million (EUR 15 million) in a fund aimed at supporting investments in sectors that are critical for Ukraine’s reconstruction. The first project is a wind farm in the Odesa region. It will help strengthen energy security in a country where large parts of electricity generation have been destroyed by Russian attacks. 

At the same time as major parts of Ukraine’s power supply have been knocked out by Russian strikes, the country is facing severe cold with temperatures below minus 20 degrees Celsius. On 14 January, President Zelensky declared a state of emergency in the energy sector. 

Norfund has managed a dedicated Ukraine Investment Fund since December 2024. The fund is now investing in the Horizon Capital Catalyst Fund (HCCF), which simultaneously announces its first investment—a wind power plant being developed by Notus Energy. 

Both agreements were signed today/20 January at Ukraine House in Davos, where Foreign Minister Espen Barth Eide participated. Energy was one of the key topics on the agenda when the Foreign Minister met President Zelensky earlier this month. 

“These are funds Ukraine desperately needs — and needs now. Ukraine has enormous needs for investments in new energy production. Energy for heating, food, and everyday life is crucial for Ukrainians to endure this war. I am pleased that we can now also contribute to this through investments via the Ukraine Fund,”

Espen Barth Eide

Foreign Minister

The equity investment from HCCF enables Notus Energy to secure a package of loan financing that allows the company to begin construction of a 124 MW wind park in the Odesa region. 

“We are pleased to have made solid progress in investing in Ukraine, and that we can now make our first investment in the energy sector through HCCF, which we hope will also attract more international investors to the country,”

Tellef Thorleifsson

CEO of Norfund

This is the third investment under the Ukraine Fund. With this investment, Norfund has deployed NOK 430 million of the NOK 500 million allocated to the fund for 2024 and 2025. The 2026 state budget sets aside an additional NOK 500 million for the fund. 

HCCF aims to raise EUR 300 million and mobilize EUR 3 billion in investments in energy, digital infrastructure and building materials—sectors that are crucial for restoring the economy and securing basic services. HCCF is established by Horizon Capital, one of Ukraine’s leading private equity firms, with over 30 years of experience and USD 1.6 billion under management. In addition to Norfund, the fund has already secured commitments from EBRD, IFC, Swedfund, Proparco and FMO. 

Facts about the Ukraine Fund

• Established on 19 December 2024, managed by Norfund, the Norwegian investment fund for developing countries 
• Part of the Nansen Programme 
• Aims to contribute to sustainable business development and job creation in Ukraine 
• So far, Norfund has made investments totalling NOK 430 million through the fund 

Norfund is investing USD 15 million in the Rebuild Ukraine Fund (REBUF), managed by Dragon Capital, to help address the shortage of equity capital for Ukrainian businesses. 

The ongoing war has severely constrained investment activity, leaving small and medium-sized enterprises (SMEs) without the resources needed to grow, create jobs, and contribute to Ukraine’s economy. SMEs are employing over 60% of the workforce in Ukraine.

The Rebuild Ukraine Fund targets a total size of USD 250 million and will focus on majority investments in resilient businesses across sectors such as consumer goods, healthcare, manufacturing, and technology. 

“As in Norway, small and medium-sized enterprises form the foundation of Ukraine’s economy. This investment strengthens these businesses, enabling job creation, resilience, and reconstruction during wartime,”

Åsmund Aukrust

Minister of International Development

Norfund’s investment will be part of the fund’s first close, alongside commitments from other European development finance institutions including IFC and EBRD. Together, these contributions will help mobilize additional international capital and strengthen Ukraine’s private sector.

“By providing growth capital to these businesses, we are supporting job creation, innovation, and the rebuilding of critical supply chains. With a dedicated team on the ground and a strategy built for wartime conditions, REBUF will support companies with strong local roots and growth potential,”

Tellef Thorleifsson

CEO at Norfund

Dragon Capital’s track record and deep local presence make it a great choice for a trusted partner for Norfund in Ukraine.

“The reconstruction of Ukraine depends on companies that continue to operate and invest despite the war. Partnership with Norfund allows Dragon Capital to direct more capital to businesses that are developing new products, expanding capacity, and strengthening local industries. We appreciate the trust of international partners and remain focused on turning it into long-term, practical results for the Ukrainian economy”, says Tomáš Fiala, Founder of Dragon Capital.

This is the second investment made under Norfund’s Ukraine Investment Mandate, which aims to support high-risk, high-impact investments that contribute to the country’s resilience, reconstruction, and long-term integration with European markets.

“Norway’s support for Ukrainian businesses is also an investment in freedom, democracy and economic resilience. By helping sustain economic activity, we strengthen Ukraine’s ability to withstand the aggression and to shape its own future,” says Minister Aukrust. 

Norway is investing around NOK 100 million through its Ukraine Investment Fund to strengthen the flow of goods in and out of Ukraine. This marks the fund’s first investment in Ukraine.

The support will go toward increasing warehouse capacity in the M10 Industrial Park in Lviv, western Ukraine. 

Since the war began, much of Ukraine’s trade has shifted from east to west. At the same time, the country’s logistics capacity has been severely reduced – not least because ports on the Black Sea are under constant attack. The lack of storage and logistics facilities in western Ukraine is particularly hindering trade and economic growth. Expanding the M10 Industrial Park will make it possible to establish an important transit hub toward Europe for importing goods to the Ukrainian population and exporting goods that generate income for the country. 

“An important part of Ukraine’s resistance is keeping the economic wheels turning. The Ukraine Investment Fund’s first investment is a good example of how the fund will contribute to this by investing in sustainable businesses and infrastructure projects,”

Åsmund Aukrust

Minister of International Development

M10 Industrial Park is already operational. The first construction phase is fully leased, and the park enjoys strong international support. The Ukraine Investment Fund’s investment will help triple warehouse capacity. When fully developed, the park will offer up to 150,000 square meters of logistics space and serve as a central hub for goods entering and leaving Ukraine. The project is expected to support the creation of up to 3,000 jobs. 

Since the government decided last year that Norfund would manage the Ukraine Investment Fund, Norfund has established a dedicated Ukraine team that has worked to build an investment portfolio. The investment in the industrial park is the fund’s first investment and is being made together with a leading Ukrainian investment company, Dragon Capital. 

“By investing in the M10 Industrial Park, we help create several thousand jobs, in line with our mandate to promote sustainable business and job creation in Ukraine,” said Norfund CEO Tellef Thorleifsson. 

Facts

• The Ukraine Investment Fund was established on December 19, 2024, and is managed by Norfund, the Norwegian Investment Fund for Developing Countries. 

• Part of the Nansen Program, it received NOK 250 million in 2024 and NOK 250 million in 2025. 

• Purpose: Contribute to the development of sustainable businesses and job creation in Ukraine. 

• Support investments that would not otherwise be made due to high risk. 

• Help mobilize private capital by encouraging private investors to invest alongside the fund or be inspired by it.

More about the Ukraine Investment Fund