Top industries in Ukraine

The World Bank’s Fifth Rapid Damage and Needs Assessment (RDNA5) estimates total reconstruction and recovery needs of USD 587.7 billion (approximately CAD 803.0 billion) over the next decade (assessment as of December 31, 2025). 

About 14% of the housing stock has been damaged or destroyed, affecting more than 3 million households. The energy and extractives sector’s recovery needs increased by 33.7% since RDNA4.

High-level reconstruction needs are significant, but they do not always translate into immediate, commercially viable projects. Many near-term opportunities are more likely to be in central and western regions, where projects can be delivered with relatively lower operational disruption. Funding is often directed toward shorter-horizon activities such as critical repairs, distributed resilience upgrades, and municipal modernization rather than very long-term, large-scale infrastructure builds.

Ukraine’s GDP composition has shifted, with the Government/Defence share increasing from 7% (2021) to 23% (2024), while there was a decline in shares of:

• trade
• agriculture
• manufacturing
• mining
• logistics 

For businesses, this can mean a larger role for public spending and procurement, alongside a logistics environment that is more constrained by security and infrastructure conditions.

Several Canadian capabilities align with areas of demand in Ukraine’s survival, recovery and modernization efforts, particularly where donors, international financial institutions and public procurement are active.

Energy resilience and rebuilding: Damage to centralized thermal and hydroelectric generation has increased interest in more distributed and resilient energy systems. RDNA5 cites recovery needs of about USD 24.5 billion (approximately CAD 33.5 billion) for bioenergy and USD 10.5 billion (approximately CAD 14.3 billion) for power grid modernization. Canadian companies may have relevant capabilities in areas such as distributed generation, grid modernization and smart‑grid technologies, industrial battery storage, small modular reactors (SMRs), and cybersecurity for critical utility infrastructure.

Infrastructure and logistics: Maintaining overland trade corridors and domestic supply chains involves repairs and upgrades to;

• bridges
• rail nodes
• warehousing
• border‑crossing infrastructure

Many projects in these areas are supported by donors and international financial institutions, and progress can be tracked through platforms such as DREAM.

Housing and municipal services: Municipal investment programs often include:

• water treatment
• wastewater management
• solid waste services
• modernization of district heating networks

Defence and dual‑use manufacturing: Ukraine’s defence technology sector, including unmanned aerial systems (UAS) and robotic ground vehicles, has grown quickly during the war. In February 2026, President Zelenskyy stated that Ukraine intended to open up to 10 weapons export centres across Europe by the end of 2026 to generate revenue from surplus production capacity. For Canadian firms, collaboration can take forms such as joint ventures, licensed production, or technology transfer, but activities in this area are highly regulated. 

Companies should treat defence and dual‑use engagements as requiring enhanced governance, including Canadian export controls, sanctions screening, and Ukraine’s sector‑specific authorizations. Where software, data, or digital components are involved, The Canada-Ukraine Free Trade Agreement (CUFTA’s) Digital Trade provisions may support cross‑border operations and intellectual property (IP) protection, but they do not replace export-control or sanctions requirements.

Digital and GovTech: Ukraine’s ongoing digitization of public services and procurement can create opportunities for Canadian IT firms, including in procurement analytics, transparency tools, and cyber defence. CUFTA’s Digital Trade commitments may strengthen the baseline for cross‑border delivery (for example, data transfers and IP protection in digital services), but companies should still confirm sector‑specific rules and tender requirements.

Ukraine has several incentives programs that may improve project economics, subject to eligibility and a formal application process. Investors should verify the current legal framework, application steps, and ongoing compliance obligations. Industrial parks are one such option and may offer incentives, including a corporate income tax exemption for up to 10 years (subject to reinvestment conditions), as well as value added tax (VAT) relief on certain imported equipment and municipal land‑tax benefits, depending on eligibility and local implementation.

In practice, these incentives are most effective when combined with solid project fundamentals, including:

• secure land or lease rights
• access to utilities
• permits
• financiig
• war‑risk coverage (where available)

“Investment Nannies” (state support for significant investments) can provide state support of up to 30% of eligible capital expenditure in the form of corporate income tax relief, VAT, and customs duty relief on importing new manufacturing equipment, and state‑funded supporting infrastructure such as roads and utility connections. 

After legislative changes, the thresholds were reduced; as of 2026, a project generally needs more than EUR 12 million (approximately CAD 19.1 million) in capital investment, an implementation period of up to five years, and a commitment to create between 10 and 50 jobs. The required average salary level depends on the number of jobs created (with higher salaries required for smaller teams).

Diia.City is a special legal regime designed to attract and retain technology companies. The number of residents changes over time; Opendatabot reported 3,707 residents as of mid‑February 2026. For Canadian companies, it can be considered as a structuring option for qualifying IT operations, alongside broader market‑entry planning. The regime offers a preferential tax framework, including a choice between the standard 18% corporate income tax and a 9% tax on withdrawn capital (dividends), and reduced payroll taxes (including a 5% personal income tax rate and capped social contributions), subject to eligibility and compliance requirements.

Defence City is a special legal regime designed to support defence‑industry manufacturers and developers. Participation typically requires obtaining Defence City resident status from the competent Ukrainian authorities and meeting eligibility criteria. Canadian firms should treat Defence City opportunities as a highly regulated area, including applying Canadian export-control rules and end‑use/end‑user controls, and carrying out enhanced sanctions and beneficial‑ownership screening of all counterparties.

PlayCity is the Ukrainian state agency responsible for regulation and oversight of the gambling and lottery sector (licensing, monitoring, and anti-illegal gambling tools). This agency is relevant primarily for firms active in iGaming, lotteries, payment tech, or compliance tooling for that sector.