A little can go a long way: Why support for business in Ukraine has a leveraged impact

In addition to humanitarian aid and security assistance, there is another line of effort necessary for Ukraine’s success today and into the future. It may not often make headlines, but support for the country’s private sector is critical for Ukrainians holding the line against Russia’s aggression. A vibrant private sector in Ukraine will be just as vital to the country’s eventual recovery.

Access to private capital is the key to economic growth; it is the lifeblood of business. What is true in more peaceful times is especially true for a nation defending itself against a brutal invasion. These beliefs have guided the work of the organization I lead, the United States International Development Finance Corporation (DFC), and our enduring commitment to Ukraine. 

We were in Ukraine well before the war, with more than $800 million in investments across a range of sectors. Since the full-scale invasion in 2022, DFC has surged its efforts to mobilize private capital and support Ukrainian businesses in agriculture, small business, energy, and health. DFC will be in Ukraine in the future, for as long as it takes.

DFC could not and did not wait for this conflict to end and for Ukraine’s reconstruction to begin. To ensure Ukrainians remain employed, and to keep the private sector paying taxes and producing essential goods and services, DFC has leveraged its full suite of tools, including lending, political risk insurance, technical assistance grants, and equity investments, to help keep economic…