Financial Support for the Development of Ukraine’s Construction Industry: Sources, Barriers, and Instruments for Post-War Recovery

Abstract

The article is devoted to the study of financial support mechanisms for the construction industry of Ukraine under conditions of prolonged military aggression and the planning of post-war recovery strategies. The relevance of the topic is determined by the unprecedented scale of destruction of civilian and industrial infrastructure, which requires capital mobilisation exceeding the country’s annual GDP. The purpose of the study is to identify key sources of financing, determine the barriers to investment activity, and assess the effectiveness of modern financial instruments for reconstruction. The methodology is based on a systematic analysis of the World Bank reports (RDNA4), statistical data from the State Statistics Service of Ukraine, and expert assessments of international financial institutions. The study finds that, as of the end of 2024, the total recovery needs increased to USD 524 billion, with the housing sector remaining the most affected. The main channels of financial inflows are characterised, including the EU Ukraine Facility program amounting to EUR 50 billion and the state mortgage lending program «eOselya». It is identified that the main barriers to the development of the sector include a shortage of qualified personnel, an annual increase in the cost of construction materials by 25–30%, and high security risks. The results of the study have practical significance for public authorities in developing investment policies and for construction companies in planning their activities strategically. The findings confirm the need to transition to «Build Back Better» models and to implement green construction principles in accordance with the EU taxonomy. Based on an analysis of international experience, approaches to optimising public-private partnerships to attract private capital are proposed.