Infrastructure and Logistics
Ukraine’s geographic location, supported by 19 free trade agreements with 47 countries, establishes it as a key transit corridor between Europe, Asia, and the Middle East. The transportation, warehousing, postal, and courier services sector represents a significant share of the country’s economy, contributing 4.5% to GDP and 5.6% to tax revenues. In 2023, transport services ranked as the 4th largest export category, generating USD 3.79 bln in revenue. The total turnover of logistics services (exports and imports) amounted to USD 6.73 bln.
The warehouse real estate market is also recovering and developing after the devastating impact of russian aggression. By 2025, the projected area to be commissioned is 205 thousand m² of warehouse space, representing a record level of new offer over the past 10 years.
Despite significant challenges, foreign direct investment in the transport sector accounted for approximately 4% of total FDI in 2023. At the same time, direct damage to transport infrastructure reached USD 36.8 bln as of winter 2024, while the reconstruction needs are estimated at USD 73.3 bln, representing around 15% of total recovery needs.
Significant investments are required to modernize and align Ukraine’s transport infrastructure with European standards. This presents vast opportunities for private capital and public-private partnership (PPP) projects, aimed at improving the quality of services and enhancing the country’s competitiveness on the international stage.
