Analyzing the economies of Ukraine’s regions that were most affected by the war but still maintain stability and investment potential.

Mykolaiv region is an example of radical transformation from a powerful export hub to a frontline region, which must solve issues of security and future economic prospects at the same time. The team of the KSE Institute’s Centre for Development of Financing and Investment analysed the current situation, business supporting programmes, and opportunities that Mykolaiv region offers to investors today.

The purpose of the analysis is to provide practical guidance:

To the government and local authorities — on opportunities to improve business support programmes in frontline regions;

To potential investors and financial institutions — on promising areas and forms of investment;

To investment project initiators — on ways to promote initiatives and find capital and business partners.

The analytical review ‘Mykolaiv Region in frontline conditions: current status, business environment support and investment opportunities’ provides a detailed assessment of:

The impact of the war, social trends and the business context;

The business environment and economic structure of the region;

Investment potential;

An overview of strategic initiatives and priority areas for investment;

Examples of investment projects;

Relevant privatisation objects;

Business support programmes — present status and recommendations;

International practices of supporting frontline regions.

Key trends shaping the region’s investment landscape:

▪️ Large-scale destruction of infrastructure and logistics chains has affected but not stopped economic activity. Small and medium-sized businesses are currently driving economic recovery.

▪️ Entrepreneurs are determined to stay in the region and adapt in various ways — from reorienting production to investing in energy sustainability.

▪️ Existing business support programmes best meet the short-term needs of SMEs. Large businesses and recovery projects require new comprehensive solutions — with a focus on affordable financing and insurance against military risks.

▪️ Investment potential in the region is significantly higher than currently demonstrated by the projects that have been developed and made public.

In addition to analysis of the problems, the KSE Institute provides practical recommendations for the government, local authorities, and donors on how to improve support programmes and form a comprehensive policy for developing frontline regions. Economic stability in these areas is no less important than security for the future of the country. Systematic support for business and attracting investment will determine how it will be.

The review was developed as part of the Ukraine Economic Recovery Programme, implemented under the support of the UK Government. The full version of the study.