Business in the Storm: New Opportunities. Notes from Ukrainian Action Forum — 2025
The speakers paid special attention to the development of the defence sector and the role of private actors in this process.
The second Ukrainian Action Forum was held in Ivano-Frankivsk. It was organized by the Aspen Institute Kyiv and Promprylad. Co-organizers included Blago and Yehor Grebennikov. One of the panel discussions focused on the current state of Ukrainian business and its future. Special attention was paid to the development of the defence sector and the role of private actors in this process. Yuriy Filyuk, founder and CEO of the Promprylad platform for innovation development, moderated the discussion.
Risk insurance tools as a prerequisite for foreign investment
Oleksandr Pochkun, co-founder and managing partner at Baker Tilly, outlined the key trends relevant for Ukrainian businesses. He noted that domestic companies have significantly adapted to the realities of war—they have become more mobile in decision-making and more frugal in spending. One example of such adaptability is the private sector’s initiatives in defence.
However, Oleksandr emphasized: Ukrainian business currently relies mostly on internal resources. There is money in the market due to investment restrictions abroad and the state’s affordable credit program, 5-7-9%. But internal resources are not enough. For sustainable growth, external investment is essential.
“The first thing to do is to implement risk insurance instruments that would allow foreign investors to engage in projects. Business needs these investments now.”
Adaptability and educating young entrepreneurs to European standards
Mykola Kmit, Chairman of the Board of the agroholding MUKKO, believes adaptability is one of the advantages of Ukrainian business and a key to its resilience.
“The strategy should certainly be long-term. But times change rapidly, and so the strategy often shifts to tactics. Small family companies fare best because they can quickly respond to everything happening around them. Large foreign corporations take longer to analyze the situation. For example, we’re seeing a certain retreat of foreign banks because they don’t know how to make decisions quickly. This is our competitive advantage — we can adapt quickly and move forward.”
Mykola talked about the role of business in post-war recovery. In his opinion, it’s crucial to begin educating young entrepreneurs now since working with large foreign capital requires compliance with certain rules and understanding the principles of working with it.
“According to Dragon Capital estimates, there will be significantly more money after the war ends than we can absorb. To absorb it — in terms of understanding Western capital — we’ll need a sufficient number of trained managers, companies, and groups that understand international accounting, auditing, and other standards. Every country in Eastern and Western Europe that engaged with major capital has encountered this.”
The defence industry as a driver of Ukraine’s economic growth
Halyna Yanchenko, Member of Parliament of Ukraine and Chair of the Parliamentary Special Commission for Investor Protection, continued the conversation on the defence industry. In her view, this sector is one of the key growth points for Ukraine’s economy.
Since the beginning of the war, the defence industry’s capacity has grown 35-fold. No other economic sector has shown such growth in all the years of independence.”
Halyna added that around 1,500 companies are currently working in the defence sector.
“One Ukrainian enterprise alone produces more artillery than all of Europe combined. And that’s considering the comfortable conditions under which foreign companies operate. The same goes for many other areas.”
She believes entrepreneurs interested in entering the defence technology market need to assess the amount of investment they can provide and the complexity of production.
Regarding basic FPV drones, which are relatively easy to produce, we expect around 4 million to be made in Ukraine. But on the Western market, they’re not in such demand. So, it makes sense either to move into more complex technologies or to seek co-investment and grow existing teams.”
Change is possible where business, civil society, and international partners align
Yulia Marushevska, Head of the Change Support Office at the Ministry of Defence of Ukraine, believes that meaningful transformation in the state requires joint efforts from business, civil society, and international partners. One example is the development of a non-lethal procurement agency — the State Logistics Operator.
Yulia emphasises that in the defence sector, support, interest, and engagement from the business community are especially important at the level of institutional change, as this is not a priority area for international partners.
“In 2022–2023, businesses stepped in when the Armed Forces needed a helping hand — purchasing everything from bulletproof vests to mortars. But it’s equally important to ask: ‘Could the state start doing its job better? What process needs to be built? What’s going on with our explosive production?’ Business pressure, interest, and attention to the defence sector carry great weight. These are the levers moving us forward.”
