Financial Planning in Ukraine: A Forward-Looking Guide for International Investors

This guide is necessarily different from others in this series. Ukraine has been subject to Russia's full-scale military invasion since February 2022, and significant parts of the country's east and south have been affected by active conflict. Any guide written in 2026 cannot pretend otherwise.

The purpose of this guide is threefold: to serve those who had existing Ukrainian financial interests before February 2022 and need to understand the current framework; to inform internationally mobile individuals with Ukrainian connections (diaspora, business partners, employees) who need to manage cross-border financial matters; and to prepare those with a long-term investment horizon for what may become one of the largest economic reconstruction opportunities in European history.

This guide does not offer predictions on the conflict's resolution, timeline, or outcome. It presents the financial planning landscape as it stands at June 2026 and the structural considerations relevant to those with Ukrainian interests.

Pre-War Investment Profile: What Ukraine Was

Before February 2022, Ukraine was a country of substantial economic potential with significant structural challenges.

The economic fundamentals: Ukraine is one of the world's largest agricultural producers — a major exporter of wheat, corn, barley, sunflower oil, and rapeseed. Its 'black earth' (chernozem) agricultural land is among the most fertile in the world. The 2021 liberalisation of the agricultural land market (allowing private ownership and sale of farmland, reversing a Soviet-era restriction) had opened a significant new investment category.

The technology sector: Ukraine had built a substantial IT services and software development industry. Kyiv Tech Hub — encompassing companies like GitLab, Grammarly, Preply, and Ajax Systems — was one of Eastern Europe's most productive technology ecosystems. The sector is characterised by highly educated, internationally competitive engineers at cost structures significantly below Western Europe.

The property market: Kyiv, Lviv, Odesa, and Kharkiv had developing urban property markets, with Kyiv in particular seeing significant investment from domestic and international buyers in the years before 2022.

The structural challenges: Corruption, rule of law weaknesses, governance issues, and geopolitical exposure to Russia had historically been the major deterrents to international investment. The Euromaidan Revolution of 2013–2014 and subsequent conflict with Russia in eastern Ukraine (Donbas) had already tested investor confidence before the full-scale invasion.

Tax Framework

Ukraine's tax framework, as it stands in 2026, is broadly as follows (subject to wartime modifications — always verify current rules with qualified Ukrainian counsel):

Personal income tax: 18% flat rate on employment and most investment income.

Military levy: Originally 1.5%, this was raised to 5% for individuals with effect from 1 December 2024 (the 1.5% rate was retained for active military personnel). The rate may change again as fiscal needs evolve, so verify the current position. The levy is applied on top of the PIT.

Capital gains: 18% (plus military levy) on gains from asset disposals. Included in general taxable income.

Corporate income tax: 18% flat rate.

VAT: 20% standard rate.

Simplified tax system: Ukraine has a system of simplified taxation for small businesses and sole traders (the "single tax" system), with rates of 3% or 5% of turnover depending on registration. This has been important for the IT sector, where freelancers and contractors commonly operate through individual entrepreneur (FOP) status with simplified taxation.

Ukraine has an extensive DTA network (a legacy of its Soviet-era and post-independence treaty-signing activity), including with the UK. The UK-Ukraine DTA provides treaty relief on most income types.

The Wartime Financial Landscape

The financial environment in Ukraine since February 2022 has been significantly constrained by necessary wartime measures.

Capital controls: The National Bank of Ukraine (NBU) imposed capital controls following the invasion. These include restrictions on foreign currency purchases, limitations on transfers abroad, and requirements for currency conversion for certain export earnings. The controls have been progressively adjusted but remain in place as of 2026. Individuals with Ukrainian bank accounts or assets should seek current advice from Ukrainian financial institutions or counsel before attempting significant international transfers.

The Hryvnia (UAH): Ukraine's currency was significantly devalued at the start of the conflict. The NBU has managed the exchange rate during the conflict period, moving from a fixed rate to a more managed float arrangement. The hryvnia's trajectory will depend substantially on the conflict's evolution and international support.

International financial support: Ukraine has received substantial financial support from the IMF, EU, US, UK, and other international partners. This support has been crucial to maintaining state functioning, paying public sector wages and pensions, and stabilising the financial system. The scale of international support — and its continuation — is a material variable for the economic outlook.

Banking system: Ukraine's banking system has remained operational throughout the conflict, with significant restrictions. The major banks (Privatbank — state-owned, the largest; Oschadbank — state savings bank; Raiffeisen Bank Ukraine; OTP Bank Ukraine) have continued to serve clients. The NBU has imposed enhanced oversight and restrictions on activities that could threaten stability.

Frozen assets: Russia's central bank foreign exchange reserves held in Western institutions have been largely frozen under sanctions. The question of using these frozen assets to fund Ukraine's reconstruction is a live legal and political question in 2026.

The Reconstruction Opportunity

The World Bank estimated reconstruction costs for Ukraine at over $500 billion as of 2024 — a figure that will grow as damage accumulates and assessment methodology evolves. This represents one of the largest economic reconstruction tasks in European history since the Marshall Plan.

For internationally mobile HNW investors, this creates a prospective opportunity in several categories:

Infrastructure: Roads, bridges, railways, energy infrastructure (power generation and distribution), water systems. International development finance institutions (EBRD, EIB, World Bank) will be major orchestrators. Private investment will play a role, potentially through public-private partnerships.

Housing and construction: Millions of housing units have been destroyed or damaged. The reconstruction of Mariupol, Kherson, Bakhmut, and dozens of smaller cities and towns will require massive construction activity.

Agriculture: Farmland in liberated areas will need investment in equipment, storage, logistics, and processing.

Technology: The Ukrainian IT sector has shown remarkable resilience — many technology companies relocated staff to western Ukraine or abroad but continued operating. Post-war, the sector is expected to accelerate.

Energy transition: Ukraine has significant renewable energy potential (solar in the south, wind in the steppe). Pre-war renewable investment had been growing; reconstruction provides an opportunity to rebuild the energy system on a modern low-carbon basis.

Practical consideration for investors: The timing and accessibility of these opportunities depends entirely on the conflict's resolution. Infrastructure and property investment in conflict-affected areas carry obvious physical and legal risks. Investors should not consider committing capital to conflict-affected territories without specialist political risk insurance, legal advice from firms with Ukraine practice, and appropriate portfolio sizing. Reconstruction investments in western Ukraine (Lviv, Uzhhorod, Ivano-Frankivsk — areas not directly affected by the conflict) carry a different risk profile than those in the east or south.

The UK-Ukraine Relationship

The United Kingdom has been one of Ukraine's most active supporters since February 2022 and has a long-standing bilateral relationship that predates the conflict.

Key elements of the bilateral relationship relevant to financial planning:

• The UK-Ukraine Association Agreement (UKAA, modelled on the EU-Ukraine Association Agreement) provides a framework for bilateral trade and economic cooperation.
• UK financial support has been among the largest bilateral contributions to Ukraine, including both grants and loan guarantees.
• UK reconstruction commitment: The UK government has signalled active interest in participating in Ukraine's reconstruction — creating an environment in which UK-originating investment into Ukraine may benefit from political support and potentially de-risking mechanisms.
• The Ukraine diaspora in the UK: The UK has received hundreds of thousands of Ukrainians under the Homes for Ukraine and Ukraine Family Scheme programmes. This diaspora has economic, cultural, and political ties to Ukraine.
• Legal firms: A number of UK-based international law firms (Herbert Smith Freehills, Dentons, CMS) have maintained Ukraine practices throughout the conflict, serving clients with existing Ukrainian interests.

Practical Financial Planning Considerations

For UK-originating HNW individuals with Ukrainian interests or those considering future positioning:

• Existing Ukrainian assets: If you have property, company interests, or bank accounts in Ukraine, engage a Ukrainian lawyer to assess current status, legal ownership documentation, and practical access. Some assets in conflict-affected areas may require formal damage or destruction documentation for insurance and legal purposes.
• Tax residency: Ukrainian tax residency is currently not a realistic proposition for most international investors. Those who were Ukrainian tax residents before 2022 should take advice on their ongoing obligations.
• Reconstruction positioning: Consider building relationships now with Ukrainian legal, accountancy, and banking professionals based in western Ukraine or in London-based Ukrainian diaspora networks. Early relationship-building positions you for when investment becomes practicable.
• Political risk insurance: Specialist insurers (Lloyd's market, MIGA, OPIC successor) offer political risk products for Ukrainian assets. This should be considered essential for any significant Ukrainian investment.
• DTA: The UK-Ukraine DTA remains in force and provides treaty protection on most income types.

Investment values can fall as well as rise. Ukraine presents the full spectrum of investment risk, from normal commercial risk to active geopolitical risk. This guide reflects publicly available information as at June 2026; the situation is dynamic and professional advice is essential.

How Global Investments Can Help

Global Investments has over 32 years of experience advising internationally mobile clients on wealth structuring across complex and emerging market jurisdictions. For Ukraine, we can assist with:

• Existing Ukrainian asset review — helping clients with pre-war Ukrainian holdings understand current legal and tax status.
• Reconstruction opportunity assessment — strategic advice on sectors and instruments most likely to be accessible to international private investors in a post-conflict environment.
• UK-Ukraine cross-border planning — DTA analysis, domicile and IHT considerations for UK-based individuals with Ukrainian connections.
• Network introductions to London-based Ukrainian legal, accountancy, and banking professionals with active Ukraine practices.
• Portfolio structuring for clients wishing to maintain appropriate exposure to Ukrainian reconstruction alongside a diversified international portfolio.

Contact the Global Investments team for a confidential consultation on your Ukraine-related financial planning.

This guide is for information purposes only and does not constitute financial, tax, or legal advice. The situation in Ukraine is dynamic and guidance in this guide may become outdated. Always seek current professional advice tailored to your individual circumstances before making financial decisions.