English Section

One in three Polish firms consider Ukraine investments in 2025 despite war: report

24.09.2024 16:30
Nearly a third of Polish companies are contemplating investments in Ukraine by 2025, even if the war with Russia continues, according to a study commissioned by Atlantic Contract and reported by the Polish Rzeczpospolita daily on Tuesday.
v.
Кіеv.Shutterstock.com/MaxxjaNe

The survey of 500 firms from the manufacturing, services, and trade sectors found that 29% are considering investing in Ukraine. While 21% firmly ruled out investments, nearly half expressed reservations due to concerns about the ongoing conflict possibly escalating.

Despite the war entering its third year, Polish businesses remain interested due to Ukraine's significant economic potential and the necessity of post-war reconstruction, according to the daily.

"It's not surprising that Polish entrepreneurs want to be present in a country with enormous economic potential. The post-war reconstruction offers a gigantic chance for business," said Łukasz Reszka, CEO of Atlantic Contract.

Polish firms believe they have advantages over Western competitors because of geographical proximity and established contracts over the past three years. However, recent political tensions and disputes, such as over grain exports, pose challenges, Rzeczpospolita reported.

Competitors from other European Union countries and the United States are already establishing a presence in Ukraine. "Those who are on the ground during tough times will have a much greater opportunity to sign contracts than newcomers who arrive when it's safe," Reszka said.

Investors are eyeing the European Union's Ukraine Facility fund for security. Poland aims to tap into EUR 7.8 billion (USD 8.3 billion) in credit guarantees but needs to complete formalities and mobilize national funds to fully benefit. Countries like Italy, Belgium, Denmark, Germany, and France have already allocated funds to support their firms, with some set to issue loans from October 1.

Paweł Kowal, chairman of the Council for Cooperation with Ukraine, encouraged businesses to propose investment ideas. He highlighted that the Export Credit Insurance Corporation (KUKE) already offers insurance, and companies will soon have access to guarantees provided by the European Commission.

Experts identify key opportunities for Polish companies in energy, transport infrastructure, city reconstruction, and municipal services. Currently, about 3,600 Polish firms operate in Ukraine, with 300 new Polish-capital companies established during the war.

"One-third of the EU's exports to Ukraine come from Poland. Poland will be an active organizational and training hub," Kowal said. "You can't deliver goods from Europe to Ukraine without Poland."

(USD 1 = EUR 0.9424)

(jh)

Source: Rzeczpospolita