From war to reconstruction: How Swedish-British business collaboration can transform Ukraine

21 November 2024

Not many people can say they have first-hand experience from setting up business in an active war zone - but Andreas Giallourakis can. As Business Sweden’s Trade Commissioner in Ukraine, Andreas has been at the forefront promoting trade and investment that will play a crucial role in Ukraine’s resilience and reconstruction. In June this year, Business Sweden opened its trade office in Kyiv, signalling a Swedish commitment to support Ukraine’s rebuilding efforts. We had the opportunity to speak with Andreas about the potential for Swedish-British businesses in this context, and how they can contribute to rebuilding one of Europe’s largest emerging economies.

The 24th of February 2022 marked a tragic turning point in modern European history, as Russia launched its full-scale invasion of Ukraine. Since then, the world has watched as the brave people of Ukraine have not only defended their own freedom and rights, but also those of Europe. 

With substantial support from the international community and a strong willingness to cooperate, support for Ukraine’s resilience and reconstruction efforts presents unique opportunities for Swedish solutions.

In June, Business Sweden expanded its presence by opening an office in Kyiv. Andreas Giallourakis, who now navigates the complex realities of conducting business in a war zone, shares an experience he witnessed from his apartment window, a sight that could only be described as a scene straight out of a movie:

“Deafening air raid sirens, headlights brightening the night sky, and defence missiles shooting down Russian drones are a natural part of life in Ukraine,” he recalls telling us about numerous nights spent in bunkers. 

Despite these, Andreas notes that life continues with surprising normalcy. “Yes, the everyday life gets interrupted by regular attacks, but life goes on. Restaurants are open, cafes are open, and businesses keep running as usual. Production is active. Factories are operating. Construction is ongoing.”

Opportunities for Swedish-British collaboration
Business Sweden in the UK, together with Andreas’ team in Ukraine, have explored how Swedish-British businesses can contribute to Ukraine’s future. Their findings, detailed in their recently published guide Ukraine Resilience and Reconstruction: Bilateral Support and Finance Opportunity Identification Guide,  highlight three key sectors where Swedish expertise and innovation can make a particular impact in Ukraine: infrastructure, energy, and healthcare. 

“Similarly to the Swedish system, there are a lot of targeted support options and tools for these sectors here in the UK, and Sweden has companies and subsidiaries with great knowledge, products, and services within these areas,” says Andreas.

He also points to possibilities for Swedish and non-UK companies to contribute to delivering UK aid to Ukraine via tenders announced online by the UK government. “There are tenders regularly coming out that target needs in Ukraine, and this could serve as a key entry point for Swedish businesses operating in the UK or Sweden to contribute to Ukraine’s reconstruction efforts.”

The guide also explains that Swedish companies can benefit from other support options, such as export financing. UK Export Finance (equivalent to Swedish Exportkreditnämnden - EKN) has a flexible foreign content requirement in place of at least 20 per cent procurement from the UK, meaning that Swedish companies could benefit from UKEF’s so-called Buyer Credit Facility. 

While in Ukraine such support is currently restricted to the defence sector, this may be reviewed in the future to once again include sectors such as energy and reconstruction of infrastructure. 

Ukraine’s vision of becoming a modern, high-tech, and sustainable nation faces immediate challenges, particularly in energy consumption during the coming winter. Russian attacks have eliminated nearly half of its pre-war electricity production, making the reduction of energy use a pressing priority. Efforts are underway to modernise utilities and cut energy consumption in public buildings, a field where Swedish companies excel. 

“There is a lot to do in the very practical, hands-on deliveries currently ongoing,” Andreas notes, emphasising the importance of companies partnering with leading Swedish engineering firms and leveraging tools and products that can help reduce energy needs in Ukraine.

Engaging with local partners and government support
Andreas encourages Swedish companies and subsidiaries to explore opportunities for collaboration, even if they do not currently have a significant presence in Ukraine. He urges businesses to “take the discussion with the Chamber, with Business Sweden, or with me and my team on the ground in Ukraine” to explore how they can contribute most effectively.

For Swedish businesses seeking to gain the British government’s attention and support, Andreas recommends engaging in dialogue with the British Department for Business and Trade (DBT) to access available tools and resources, including the DBT Ukraine Business Guide and upcoming trade missions.

Additionally, he offers his own expertise, now that he spends a considerable amount of time in London. “Ukraine is not a family mission yet. My wife is British, so we decided to have the family living in London for the time being, until it’s possible to move to Ukraine as a family. This makes it perfect for Swedish businesses to contact me, but also my colleagues here in the UK, for guidance on the Ukrainian market and the different support options that the British government offers.”

No one knows when the war will end. But what we do know is that the courage and resilience of the Ukrainian people, coupled with strong international support, have laid the groundwork for a brighter future once peace comes. Bringing innovative and sustainable solutions to critical sectors, Swedish-British businesses could stand at the forefront of this transformation.

About the guide
Business Sweden’s new guide “Ukraine Resilience & Reconstruction - Bilateral Support and Finance Opportunity Identification Guide: Germany, Poland, the United Kingdom and Ukraine” has been developed as part of Business Sweden’s Trade-to-Aid assignment by the Swedish Government. 

Following a launch webinar on 10 September 2024, the guide is published on                      ukraine.swedenalliances.com. Business Sweden is also planning local company engagement activities and welcome interested company representatives to get in touch.