Central European companies are looking to the future of Ukraine, with plans to invest hundreds of billions of dollars in reconstruction projects once the war ends. The Czech government has pledged to spend 500 million crowns ($23.5 million) each year through 2025 to support firms seeking to work in the country, while Poland is in discussions with representatives from countries including South Korea, Japan and Great Britain to partner with Polish companies more familiar with Ukraine.
The cost of recovery is likely to be $411 billion, or 2.6 times Ukraine’s estimated 2022 GDP, according to a joint assessment by Ukraine and the World Bank. Polish bank Pekao SA has estimated that reconstruction could boost neighbouring Poland’s economy by up to 189 billion zlotys ($45.6 billion).
However, progress will depend on the ability of Ukraine’s authorities to demonstrate transparency, as corruption remains a major concern. Transparency International’s Corruption Perceptions Index puts Ukraine in 116th place, far below its European Union neighbours.
Central European companies are taking the lead in the reconstruction of Ukraine, with strong military and political support from the Czech Republic and Poland, countries dominated by Moscow during four decades of Communist rule. With the stakes high, these companies are looking to the future of Ukraine and the potential for a lucrative market.