Exploring financing mechanisms for Ukraine’s infrastructure reconstruction

Russia's full-scale invasion of Ukraine and its widening fiscal constraints limit the state’s capacity to fund large-scale projects, underscoring the need to mobilise private capital as part of a broader financing strategy. This policy brief highlights the pivotal role of war risk insurance to restore investor confidence and improve the bankability of long‑lived infrastructure assets, yet underscores that coverage remains limited and fragmented without a clearer regulatory framework and credible compensation arrangements. Furthermore, medium-term financing can benefit from securitisation of revenue‑generating “brownfield” assets through enabling legislation and credible operation and ownership arrangements. Finally, in the long term, a targeted, operationally independent national development bank can play a catalytic role by filling market gaps in long-term finance, de-risking infrastructure projects, and crowding in private investment through guarantees, co-lending and blended structures. Leveraging these instruments can balance risk mitigation with institutional development to unlock private finance at scale and support resilient reconstruction aligned with Ukraine’s long-term growth and EU integration objectives.