Four Years of War: Blended Finance Supports Ukraine’s Economy and Energy Supply

Frankfurt, 20 February 2026 – Four years after the outbreak of the war, Ukraine continues to face enormous pressure: energy infrastructure, agricultural land and production facilities are severely damaged, and many businesses lack liquidity and planning security. With no end to the conflict in sight, international partners are playing a key role in stabilising the economy and securing the country’s energy supply. Central to this effort are blended finance solutions, which strategically combine public and private capital.

Finance in Motion GmbH invests in Ukraine through two investment funds, the Green for Growth Fund (GGF) and the European Fund for Southeast Europe (EFSE), both supported with risk capital from the German Federal Ministry for Economic Cooperation and Development (BMZ). As a specialised impact asset manager focused on emerging and developing markets—regions where many investors hesitate—Finance in Motion aims to “strengthen economic resilience, promote energy independence and stabilise European supply chains,” says Sylvia Wisniwski, Co Founder and CEO of Finance in Motion.

Ukraine has lost more than 50% of its power generation capacity. Ongoing attacks on electricity grids and power plants lead to frequent outages, making decentralised renewable energy projects increasingly critical. Through the GGF, Finance in Motion is investing in two such initiatives: a wind farm in the Odesa region expected to generate around 384,000 MWh of clean electricity annually, and a solar plant in eastern Ukraine, projected to produce approximately 28,000 MWh per year. Both projects are being developed in close cooperation with international partners such as Goldbeck Solar and others well as local banks. The BMZ is providing the risk sharing capital needed to enable these investments.

“These projects secure electricity for households and businesses in Ukraine and create demand along European value chains,” says Wisniwski. “They demonstrate that responsible investment is possible—even under wartime conditions.”

Alongside energy supply, stabilising the real economy remains a priority. Destroyed fields, damaged machinery and ruined production halls have placed many businesses in existential crisis. “Small and micro enterprises in particular urgently need capital to continue operating,” Wisniwski explains.
Through the European Fund for Southeast Europe (EFSE) and its dedicated Ukraine Sub Fund, Finance in Motion is providing targeted financing to Ukrainian companies. In 2025 alone, approximately EUR 80 million was channelled to small and medium sized enterprises. The funds support the replacement of agricultural equipment, the reconstruction of production facilities, and the maintenance of supply chains. EFSE works closely with local banks that issue loans directly to Ukrainian businesses.
“Blended Finance has proven to be an effective tool for mobilising private investment and helping smaller enterprises navigate extremely challenging times,” says Wisniwski. “At the same time, these investments stabilise Europe’s supply of key agricultural commodities such as wheat, corn and sunflower oil—benefitting companies and consumers alike.”

Finance in Motion’s blended finance approach combines public, development oriented funding with private institutional capital. Public investors such as the BMZ assume specific credit risks, providing assurance to private investors. In Ukraine’s case, additional investment guarantees from the German government further strengthen the funds. This structure creates a leverage effect, enabling investments in markets that are currently deemed too risky for traditional financing.

For more than 20 years, Finance in Motion has been investing in emerging markets globally. The company structures and manages over EUR 4 billion in assets under management across several Article 9 impact funds. Through long term partnerships, on the ground expertise and innovative financing structures, the Ukraine portfolio once again illustrates how blended finance can generate positive impact—even under extreme circumstances.