Ukraine requires more than EUR 5 billion annually in war risk insurance to unlock private investment and support the country’s reconstruction efforts, according to Economy Minister Oleksiy Sobolev.

As reported by Ukraine Business News, Sobolev stressed that state resources and donor support alone are insufficient to finance Ukraine’s transformation, with the government relying heavily on private capital to bridge the gap. However, war-related risks continue to represent the main obstacle to investment flows.

“Without enhanced risk insurance, reliable guarantees, and practical risk-sharing tools for private investors, there will be no large-scale recovery. We estimate the demand for risk insurance at over EUR 5 billion annually, and we need tools that can be deployed quickly and on a large scale,” Sobolev said, quoted by the source.

According to the minister, the priority sectors requiring de-risking mechanisms are energy infrastructure and fuel logistics. Ukraine is calling on European institutions and international financial organizations to expand insurance capacity through solutions similar to the European Bank for Reconstruction and Development’s URGF fund.

Following a difficult winter and continued attacks on its energy infrastructure, Ukraine is seeking financing not only for repairs but also for the modernization of its industrial base. Germany was the first country to respond, allocating EUR 263 million through KfW and Federal Ministry for Economic Cooperation and Development to support business and energy sector modernization.

According to Ukraine Business News, the effectiveness of these initiatives will largely depend on the willingness of the EU and international partners to share military-related risks with private investors.