National Development Institution

On 08 October 2025, the Verkhovna Rada of Ukraine adopted in the second reading Draft Law No. 11238 regarding the establishment of the National Development Institution — a specialized state institution for financing reconstruction projects in Ukraine.

The Draft Law provides for addressing financing gaps for relocated businesses, enterprises in frontline regions, businesses of internally displaced persons, as well as high-risk projects. The National Development Institution (NDI) will attract funds from private investors and channel them into economic recovery through various financial instruments.

Priority is given to support for small and medium-sized enterprises facing challenging conditions but possessing growth potential. The Draft Law also provides for the possibility of supporting other categories of entities, including individuals, who face limited access to financing due to crisis conditions or market imperfections.

The Draft Law establishes a military risk insurance system for entrepreneurs in frontline regions, reducing financial risks and encouraging business development under martial law conditions. NDI enhances the instruments of the Export-Credit Agency, including insurance and reinsurance against war and political risks for loans to Ukrainian enterprises.

This applies to investments in the creation of facilities and infrastructure necessary for the development of processing industries and the export of goods, works, and services of Ukrainian origin.

The National Development Institution is defined as a state specialized institution with the status of a “bank of banks,” with a clear mandate for reconstruction and structural transformation of the economy. The main mission of the NDI is to implement lending programs for the country’s reconstruction.

The Draft Law establishes a centralized mechanism of state support for the recovery, modernization, and sustainable economic growth of Ukraine. It provides a financial intermediation tool between businesses and banks to deliver loans, grants, and compensation for interest, leasing, and insurance premiums

We will closely monitor further developments in this area and will report on them in future Legal News.