Editor’s note: Welcome to the second issue of BuildBack Ukraine! We’ll be posting at a monthly cadence for the time being, but may publish more depending on the news cycle. Have some feedback? Hit reply to this email or send me a note at [email protected]!
SPOTTED:
At the URC 2026 in Gdansk on June 25-26, 2026… Jesper Karup Pedersen, PhD (Econ), Market Director of NIRAS… Zoriana Semenovych, Managing Editor of The Arsenal… Joshua K. H. Sung, Brand Manager of HYOSUNG… Alissa Bankovska, Head of Rebuild Green Committee… Mariana Lastovyria, Creative Editor of The Counteroffensive… Yana Horiunova, Chief Information Officer of BRDO.
BLUF:
The Ukrainian government has chosen modular construction as its primary rebuilding instrument since it is fast, factory-made, and scalable. But the material supplier market is split into three categories — European, Ukrainian, and low-cost imports — with no common criteria for comparing energy performance, service life, or warranty terms, or a public registry.
This creates certification uncertainty when Ukraine needs to scale modular housing fastest, and raises the risk that today's builds won't meet the EU standards Ukraine must adopt on its path to accession.
Metinvest presented the Mariupol Quarter at URC. The Mariupol Quarter is an investment model for 44 buildings in Bila Tserkva housing 10,500 displaced Mariupol residents, with a total funding requirement of €182 million.
In June, the Cabinet of Ministers formally made Ukraine's reconstruction data platform mandatory. This gives investors and donors a single, standardized source of project data.
Kyivstar and Ukraine's securities regulator signed a memorandum at URC to explore giving domestic investors access to the company's Nasdaq-listed shares through local brokers — a workaround for wartime currency controls.
THE BIG STORY: The modular construction market
The expected cost of Ukraine’s reconstruction exceeds $90 billion for housing over the next ten years. Modular housing can become a solution for many of those who lost their homes.
Modular home for a family in Makariv, Kyiv Region. Photo by Future Publishing from Getty Images.
The Ukrainian modular housing supplier market is divided into three categories.
European segment: Companies operating under EU regulatory frameworks. They come with defined quality controls, documented energy performance, and clear warranty structures, as well as higher price points and longer lead times.
Ukrainian manufacturers: Structural insulated panels and frame-panel systems without official European certification confirmation.
Low-cost suppliers from emerging markets: Lowest unit cost, fastest delivery in volume, minimal public documentation on long-term performance. They do not appear in International Financial Institution (IFI) procurement records.
There is no public registry of modular housing suppliers operating in Ukraine, nor are there any standards for similar construction projects. This means buyers have no common basis to compare suppliers on energy performance, service life, or warranty terms before committing public or donor funds.
Ukraine's building codes predate factory-made housing
All construction in Ukraine, whether modular or not, must adhere to Ukrainian building codes.
"Currently, there are no specific building codes for modular housing. It must meet the same requirements as any other type of housing. The only difference is that a significant portion of the building is assembled in a factory instead of on a construction site,” said Slava Balbek, founder of Balbek Bureau, an architecture studio working on reconstruction projects since 2022.
A modular housing building constructed in Sumy, Ukraine, for people displaced by the war in the region. Photo by Francisco Richart from Getty Images.
It remains unclear whether modules manufactured in Ukraine or China will meet the European standards that Ukraine will have to adopt upon joining the EU.
Dean Ross, CEO of Sunflower Network, the US nonprofit that built Ukraine's first modular hospital explained how the process of certification went for them:
"It started with the local knowledge of the team we put in place in Ukraine and Poland, was meticulously reviewed by our global experts to US and EU standards, and was ultimately subject to certification by Climatic to Polish standards, and by the local hospital, municipality, and our architect of record to Ukrainian standards," Ross said. "This also included site inspections by all of these parties."
Another modular building project took a different approach. Jørn Eirik Erlund, CCO of Moelven Byggmodul AS, clarified the specifics:
“As a pilot project, there was no requirement for CE marking. The primary focus was compliance with Ukrainian technical building regulations, with the design delivered in accordance with Norwegian building regulations (TEK17).”
TEK17 requirements typically surpass the minimum standards in both Ukraine and the EU, and Ukraine accepted it.
Major IFIs specify their own technical requirements for projects that they fund. Ukrainian public procurement operates without a common standard.
Workers install houses at the site of a modular town for internally displaced persons in Zaporizhzhia, Ukraine. Photo by Dmytro Smolienko from Getty Images.
What could cheaper solutions cost?
Standards can determine who will pay the price difference over the next 30+ years.
Heating
A poorly insulated home can cost residents 3-5 times more each month to heat. For a government supporting vulnerable populations, this could mean paying subsidies for years rather than investing that money in the next wave of construction.
Warranties and service life
European modular home manufacturers claim a service life of over 50 years. No comparable public documentation exists for lower-cost alternatives.
In Ukraine, contractors are required to guarantee the quality of construction for 10 years. In a modular supply chain, this responsibility is divided, so the community lacks the legal tools and administrative resources to enforce the warranty across borders.
European integration and modernization in line with new standards
For joining the EU, Ukraine must gradually implement construction standards and requirements for building materials.
When it happens, lower-class homes will have to undergo costly retrofitting or be deemed non-compliant, which previously happened with retrofitting Soviet-era buildings in countries that wanted to participate in the EU.
Project already completed
The Norwegian Moelven Byggmodul AS and Itera ASA consortium completed and delivered the building pro bono within three months of signing the contract for Housing for Ukraine project. The project is located in Borodianka in Kyiv region, where 80% of buildings were damaged or destroyed following the 2022 occupation.
“Key lessons are that grants of this kind (social infrastructure) require special permits that few have experience with,” Jon Erik Høgberg, Group COO of Itera ASA, told BuildBack. “Even if the grant from the Norwegian business partners was extensive — valued at more than €600,000 ($685,000) — the local works were expected to be financed by grants or funds from the village council.”
Wooden module by Moelven Byggmodul AS is going to Ukraine. Photo by Lars Christian Ulven from Moelven.
Why is scaling harder when building?
Modules can now be designed, manufactured, shipped and assembled within a few months.
The more difficult issue is financing — specifically, the lack of instruments that enable Ukrainian municipalities to become creditworthy borrowers on the scale required for reconstruction. Without this capacity, even a completed pilot project cannot be replicated, as the next community will be unable to structure a deal that any lender will accept.
"There is room to scale the construction method, but the financing must be there to match," Ross told BuildBack. "The financing environment in Ukraine is not sophisticated enough for the types of public-private partnerships that would allow this to scale."
International financial institutions have turned away communities that have approached them for relatively small reconstruction loans without providing a roadmap for future eligibility.
"Instead of refusing, institutions should use these opportunities to design a template on how to enable a village council to prepare such a project, attract financing — not grants — and execute with a long-term 40-50 year loan, 3 percent fixed interest, and guarantees covering war damage and non-payment," Høgberg told BuildBack. "Investment in housing yields 3.4 to 4 times in Social Impact Return on Investment. The €90 billion ($102.9 billion) required for Ukraine's housing sector over the next decade will yield returns equivalent to one year of Ukraine's GNP. Investing in housing is probably the best business case any municipality can make for its citizens."
BUSINESS LUNCH TOPICS
$200M housing plan for Mariupol's displaced seeks IFI backing
An investment model for six residential neighborhoods designed to house 10,500 internally displaced persons from Mariupol was presented at the URC in Gdańsk by Metinvest and Ukrainian authorities to international financial institutions.
The buildings will be constructed using Metinvest’s Steel Dream steel-frame technology.
Mariupol Quarter Project. Image from Metinvest.
Over 70% of the frame is manufactured in a factory, which speeds up construction. For instance, a single-story building can be erected in two months using this technology, and an eight-story building in nine months.
“They are based on modern steel structures, which enable construction to be carried out quickly, cost-effectively, and reliably. After all, the first thing Ukrainians need to return home and rebuild their lives is a home,” Yuriy Ryzhenkov, CEO of the Metinvest Group, said.
The total funding requirement is €182 million (approximately $207 million). Half is guaranteed by the state, using funds from the Mariupol community that are transferred to the state budget. In this model, the fiscal assets of the devastated city serve as collateral for rebuilding its residents’ lives. The remainder is open to grants and external investment, and Metinvest is promoting it to IFIs as a replicable model.
Ukraine's reconstruction data platform gets government mandate
In June 2026, the Cabinet of Ministers formally designated the DREAM ecosystem as the central element of the nationwide public investment management (PIM) infrastructure by approving the Concept for the Development of a Unified Digital Ecosystem for Public Investment Management.
In July, several core updates will be introduced. For example, the system is expected to include data on completed procurements, the scope of work performed, payments made, and photographs from construction sites. Also set to launch that same month is an AI chatbot.
"We are introducing an assistant that will clearly explain to the community what an investment area is, how to develop a medium-term plan, how to prioritize investments, and how to distinguish between public investments and capital expenditures,” said Volodymyr Nestulia, head of the DREAM Project Office.
The system currently includes over 14,000 projects, with a total value of approximately ₴1.26 trillion ($28 billion).
Ukrainians can now invest in Kyivstar
On June 26, Kyivstar Group, Ukraine's largest mobile operator, and the National Securities and Stock Market Commission signed a memorandum at the URC. The agreement aims to create a mechanism that would allow Ukrainian investors to purchase the company’s shares on Nasdaq through local brokers. This mechanism is a workaround for wartime currency restrictions that prevent the free purchase of foreign assets.
“Ukrainians are accustomed to being customers of leading companies, but they should also have more opportunities to invest in them. Our goal is to create clear, transparent, and secure mechanisms that enable citizens to allow for this,” Oleksii Semeniuk, Chairman of NSSMC said.
Since November 2024, Kyivstar has been trading on Nasdaq under the ticker symbol KYIV.
UKRAINIAN ORDERS/LEGISLATION WE'RE TRACKING
By: Oksana Zabolotna
Unified Rules for Applying the List of Combat-Affected and Occupied Territories
Resolution of the Cabinet of Ministers of Ukraine №635 dated May 20, 2026
Why it is important: The resolution may facilitate the implementation of recovery programmes by establishing a more consistent legal basis for determining which territories qualify for compensation, housing support, eVidnovlennia, reconstruction funding, and other recovery measures. By removing fragmented territorial categories and aligning eligibility criteria across multiple sectors, the changes may reduce administrative inconsistencies, simplify access to assistance, and support faster implementation of recovery and reconstruction efforts in war-affected areas.
Proposals:
In more than 70 government acts, references to the separate category of “territories of active hostilities where state electronic information resources are functioning” are replaced or removed, ensuring that programs rely on a single list of combat-affected and temporarily occupied territories approved by the Ministry for Development of Communities and Territories of Ukraine (including in state support for business, agriculture, grants, lending, and insurance).
For eVidnovlennia, compensation for damaged and destroyed housing, IDP support, and housing programmes, separate exemptions and references to subcategories of combat-affected territories are removed, thereby unifying eligibility criteria for compensation and assistance.
For state registries, notarial services, the land cadastre, and property rights, access restrictions and service availability are clarified to depend not on a specific territorial category but on the actual functioning of information, electronic communication, and information and communication systems.
The rules for applying territorial classifications are updated for evacuation, social assistance, healthcare services, housing subsidies, humanitarian demining, and damaged infrastructure recovery, reducing inconsistencies across regulations.
Approaches to determining eligibility for state support are revised: access to compensation, grants, loans, and benefits will depend more on the single official territorial status, rather than on different territorial categories across separate regulations.
Stage: Will enter into force on May 22.
Initiator: The Cabinet of Ministers of Ukraine
What’s next: Implementation of the resolution.
SECTOR SIGNALS
AGRICULTURE | Mergers and acquisitions (M&A) activity in the crop production sector has accelerated sharply. There were more than 10 deals totaling $525 million in the first four months of 2026, compared to 18 deals totaling $167 million in all of 2025.
INFRASTRUCTURE | Starting August 1, the government plans to implement a 30 percent increase in freight tariffs for Ukrzaliznytsia — Ukraine's state-owned national railway operator — despite the company's request for a 45 percent increase. This news comes as the railway operator reported a staggering UAH 9.3 billion ($207 million) loss in the initial four months of 2026.
INFRASTRUCTURE | A total of 15 public-private partnership (PPP) projects with a combined value of $5 billion were presented by Ukraine at the URC, including a concession for a Black Sea port and railway corridors.
FINANCE | At the URC, National Bank of Ukraine (NBU) Governor Pyshnyy stated that Sense Bank and Ukrgazbank — two state-owned lenders — have a “good chance” of being privatized by the end of 2026. The government hopes to attract strategic investors with €200-300 million ($228-342 million) in capital.
FINANCE | The EIB announced a €470 million ($536 million) support package for Ukraine, including €80 million ($91 million) for the European Flagship Fund, a €50 million ($57 milliom) loan for social housing, and €100 million ($114 million) for Ukreximbank, Ukraine's state export-import bank. The package also includes guarantees for PrivatBank and Ukrgazbank, which will support €500 million ($570 million) in SME lending.
HOUSING | Ukraine and the Council of Europe Development Bank have agreed to provide over €251 million ($286 million) for housing programs in Ukraine, including a new €60 million ($68 million) “Housing for Veterans” initiative. This initiative will offer more than 1,500 preferential mortgage loans to Ukrainian defenders.
MUST READS
The US Development Finance Corporation and the World Bank's MIGA signed a partnership agreement at URC in Gdańsk, Interfax Ukraine reported, providing political and war-risk coverage for projects backed by the US-Ukraine Reconstruction Investment Fund.
On June 26, NEFCO resumed lending to Ukrainian municipalities after a four-year hiatus, which included a €117 million green recovery program with the first projects launched in autumn 2026.
In response to the Hungarian government's recent statements opposing the acceleration of Ukraine’s accession to the EU, the EU is scaling back the process, Euronews reported.
FIELD NOTE
“Do you think that Zelenskyy should have really started this conflict with Poland?”
“What do you think about the conflict between Zelenskyy and Navrotsky?”
“Zelenskyy didn’t come because of the conflict!”
Discussions about recent news came up at every networking event at the URC in Gdańsk.
Should such news overshadow the reason 7,500 people gathered? Ukraine’s reconstruction ranked only second among the most discussed topics there.
