Ukraine can already start rebuilding

Joint ventures, consortia, contracting

The topic of rebuilding Ukraine after the devastation is probably the second most pressing after the immediate end of the war. A number of countries have already presented their strategies for restoring critical infrastructure and entire settlements affected by the fighting. Plans and discussions in this vein continue to be developed and publicized in forums. This trend is positive, as it is a clear proof that Ukraine has the support of the international community in difficult times.

Our firm considers it necessary to regularly monitor all important topics and trends in the post-war reconstruction of Ukraine. Continuing to gather new opinions on the subject, we participated in the seminar “European Construction Sector: Poland and Ukraine between Cooperation and Competition”, which took place online on Thursday, October 10, 2024. The event was organized by the Warsaw Institute of Entrepreneurship and the Institute for Economic Research and Policy Consulting (IER). The Ukrainian and Polish speakers were representatives of the construction industry of both countries.

We believe it is important to share the fresh thoughts and visions we heard at the seminar.

Reconstruction of Ukraine

The main unknown in this “equation” is the end of the war. That is why there can be no specifics on the topic of reconstruction.

The need for building materials

However, we do know that the volume of construction and use of construction materials will be enormous. These volumes will only grow, as the war, unfortunately, is still ongoing.

The latest technologies

Special attention was paid to the construction of new housing in Ukraine. We were not talking about Soviet-style construction technologies, of which we still have many examples, but rather about the use of the latest technologies with the use of systems with zero toxic emissions into the atmosphere. This is a realistic model, but it is currently difficult to implement in Ukraine due to the budget deficit and difficult times for the domestic economy.

What to build and how to build

It is important for Ukrainian companies to decide what to build and how to build it. The emphasis is on climate and environmental factors that should be taken into account in the implementation of joint projects. Attention should also be paid to the technical and legal aspects of the construction industry. Economic standards should be brought as close as possible to the European ones. This will allow us to carry out joint activities with international partners over the next decades, which will help rebuild our country.

This is one of the main challenges that Ukrainian companies may face

In this context, it is important to maximize the participation of Ukrainian companies in tenders on the basis of transparency and accountability. This process will help Ukrainian companies adapt to the conditions in which the European Union operates. It is very important to develop forms of identical economic activity on the territory of Ukraine: joint ventures, consortia, contractual activities, etc. According to the lecturers, the movement in this direction and preparatory work should be carried out now, without waiting for the end of the war.

As a reminder, Ukraine applied for EU membership in February 2022 and was granted EU candidate status in June 2022. In December 2023, EU leaders began negotiations on accession and on the ability of Ukrainian companies to adapt to the requirements of the EU construction sector. According to the results of the discussions, domestic companies have every chance to achieve the same success as Polish companies and close cooperation between the two countries in this area is possible.

Сonclusion

The construction sector is a key element in the restoration and development of Ukraine’s infrastructure, and the production of construction materials is an important component of economic integration with the EU. Harmonization of standards and cooperation with European partners open up new opportunities for the industry. Cooperation between Polish and Ukrainian entrepreneurs could be the key to success in the European market.