INVESTMENT FUNDS IN FINANCING INFRASTRUCTURE RECONSTRUCTION: EU EXPERIENCE FOR UKRAINE
DOI:
https://doi.org/10.17721/1728-2667.2026/229-2/11Keywords:
Investment, infrastructure investment funds, institutional investors, project finance, European Union; reconstruction of UkraineAbstract
Background. In the context of intensifying geopolitical challenges, economic uncertainty, and large-scale destruction, the search for long-term financing sources for Ukraine's infrastructure recovery has become particularly relevant. The purpose of the article is to generalize the experience of European Union countries regarding the participation of investment funds in mobilizing private capital and directing it to infrastructure assets, to clarify the concept of an infrastructure investment fund in line with EU regulatory practice, and to substantiate recommendations for involving institutional investors in financing the reconstruction and modernization of infrastructure in Ukraine.
Methods. The study is based on the application of systemic and structural-functional approaches, institutional and content analysis of official documents issued by the European Commission, the World Bank, and the OECD. To develop a system of indicators for assessing the feasibility of attracting private capital, expanding the range of participants in infrastructure funds, and identifying instruments for investor protection, the research employs indicative, multicriteria, and economic-statistical analysis, as well as methods of generalization and typologization based on data from international financial institutions and industry consulting companies.
Results. The performance of investment funds in EU countries during 2020–2024 was analyzed. The economic essence of the concept of an infrastructure investment fund was clarified, taking into account the EU regulatory requirements for alternative investment funds. The specific features of investment funds' participation in the creation and operation of infrastructure assets were identified. Considering the distinctive risk–return profile of infrastructure as an asset class, a system of financial indicators was proposed to support asset management companies in developing balanced investment strategies. The generalization of EU experience enabled the formulation of recommendations for expanding the range of investors and applying instruments for investor protection in financing Ukraine's infrastructure recovery and modernization.
Conclusions. Investment funds represent an important instrument for mobilizing long-term private capital and establishing a sustainable mechanism for transforming savings into productive investments for Ukraine's economic recovery. Their effectiveness depends on the combination of best international practices, flexible investment policies of asset management companies, standardized regulatory requirements, and reliable investor protection mechanisms.
Downloads
References
De Aragão, J. J. G, Dourado, A., Yamashita, Y., de Andrade, M. & Soares, R. (2025). Concession of transport infrastructure: the Brazilian case. Transportation Research Procedia, 82, 377–389. https://doi.org/10.1016/j.trpro.2024.12.050
Bank for International Settlements. (2014). Understanding the challenges for infrastructure finance. https://www.bis.org/publ/work454.htm
Baranovskyi, O. (2024). Financial security of critical infrastructure. Finance of Ukraine, 12, 7–24 [in Ukrainian]. https://doi.org/10.33763/ finukr2024.12.007
Bigerna, S., D'Errico, M., & Polinori, P. (2025). The role of EU structural and investment funds in the green transition: a stochastic ray frontier analysis. Economic Analysis and Policy, 87, 689–709. https://doi.org/10.1016/j.eap.2025.06.011.
Bryson, J., Mulhall, R., Song, M., Loo, B., Dawson, R., & Rogers,C. (2018). Alternative-substitute business models and the provision of local infrastructure: Alterity as a solution to financialization and public-sector failure. Geoforum, 95. 25–34. https://doi.org/10.1016/j.geoforum.2018.06.022
Della Croce, R., & Yermo, J. (2013). Institutional Investors and Infrastructure Financing. OECD Working Papers on Finance, Insurance and Private Pensions, OECD Publishing. https://dx.doi.org/10.1787/5k3wh99xgc33-en
Demirel, H., Leendertse, W., & Volker, L. (2022). Mechanisms for protecting returns on private investments in public infrastructure projects. International Journal of Project Management, 40(3), 155–166. https://doi.org/ 10.1016/j.ijproman.2021.11.008.
European Investment Bank. (2025). Amber Dragon Ukraine Infrastructure Fund I. https://www.eib.org/en/projects/all/20250053
European Parliament & Council of the European Union. (2011). Directive 2011/61/EU of 8 June 2011 on alternative investment fund managers and amending Directives 2003/41/EC and 2009/65/EC and Regulations (EC) No 1060/2009 and (EU) No 1095/2010. Official Journal of the European Union, L 174, 1–73. https://eur-lex.europa.eu/eli/dir/2011/61/oj
European Parliament & Council of the European Union. (2024). Directive (EU) 2024/927 of 13 March 2024 amending Directives 2011/61/EU and 2009/65/EC as regards delegation arrangements, liquidity risk management, supervisory reporting, the provision of depositary and custody services and loan origination by alternative investment funds. Official Journal of the European Union, L 2024/927. https://eur-lex.europa.eu/eli/dir/2024/927/oj
Finnerty, J. D. (2013). Project Financing Asset-Based Financial Engineering (3rd ed.). Wiley.
Gaidai, Y. (2022). Financing instruments for economic reconstruction in Ukraine [in Ukrainian]. https://ces.org.ua/financing-the-reconstruction-of-ukraines-economy/]
Gatti, S. (2018). Project Finance in Theory and Practice. Designing, Structuring, and Financing Private and Public Projects. London: Elsevier Inc.
Inderst, G., & Stewart, F. (2014). Institutional Investment in Infrastructure in Developing Countries: Introduction to Potential Models. Policy Research Working Paper, 6780. https://doi.org/10.1596/1813-9450-6780
Ingo, W. (2016). The infrastructure finance challenge. Stern School of Business. https://doi.org/10.11647/OBP.0106.07
Іnvest Europe. (2025). Building Europe's foundations: the role of private capital ininfrastructure. https://www.investeurope.eu/research
Kaminskyi, A., Nehrey, M., & Fedchun, A. (2022). ESG-score effect in risk assessment of direct and portfolio investment: evidence from CEE markets. The Journal of V. N. Karazin Kharkiv National University. Series: International Relations. Economics. Country Studies. Tourism, 15, 38–44. https://doi.org/10.26565/2310-9513-2022-15-04
Kovalenko, V., & Sheludko, S. (2019). Project financing in conditions of uncertainty and risk. Market Infrastructure, 36, 415–424 [in Ukrainian]. https://doi.org/10.32843/infrastruct36-64
Kudrjashov, V. (2022). Formation of critical infrastructure in Ukraine. Finance of Ukraine, 2, 7–25 [in Ukrainian]. https://doi.org/10.33763/finukr2022.02.007
Macquarie. (2024). Macquarie Asset Management to divest stake in Hydro Dolomiti Energia. https://www.macquarie.com/ae/en/about/news/ 2024/macquarie-asset-management-to-divest-stake-in-hydro-dolomiti-energia.html
Mathur, S., Nixon, H., & Chokshi, S. (2024).Predevelopment revolving loan funds to develop affordable housing: Program features and how they can be strengthened. Cities,155. https://doi.org/10.1016/j.cities.2024.105494.
McKinsey, & Company (2025). Global Private Markets Report 2025: Braced for shifting weather. https://www.mckinsey.com/industries/private-capital/our-insights/global-private-markets-report
MEU. (2024). Ukraine Facility Plan [in Ukrainian]. https://www.ukrainefacility.me.gov.ua/wp-content/uploads/2024/03/plan-ukraine-facility.pdf
Mishchenko, V., Tishchenko, I., Naumenkova, S., & Mishchenko, S. (2025). Basic Pillars of the Industrial-Digital Technological Order. Financial and credit activities: problems of theory and practice, 5(64), 353–365. https://doi.org/10.55643/fcaptp.5.64.2025.4953
Mishchenko, S., Naumenkova, S., & Tishchenko І. (2025). The synergy of artificial intelligence and blockchain technologies in the financial sector. Bulletin of Taras Shevchenko National University of Kyiv. Economics, 2(227), 54–64 [in Ukrainian]. https://doi.org/10.17721/1728-2667.2025/227-2/7
Nabok, V. (2023). EU Funds: Opportunities for Ukraine [in Ukrainian]. https://iaa.org.ua/portfolio/founds-of-eu]
Naumenkova, S., Mishchenko, S., Mishchenko, V., & Tishchenko, I. (2026). Real estate investment trusts: investment approaches and application prospects in the Ukrainian real estate market. Investment Management and Financial Innovations, 23(1), 374–394. http://dx.doi.org/10.21511/imfi.23(1).2026.28
Naumenkova S., Mishchenko S., & Tishchenko I. (2016). Financial instruments to protect against political risks in project finance. Bulletin of Taras Shevchenko National University of Kyiv. Economics, 187, 6–17 [in Ukrainian]. http://nbuv.gov.ua/UJRN/VKNU_Ekon_2016_10_3.
Naumenkova S., Mishchenko, S., & Tishchenko I. (2024). Project Financing in the Context of the Implementation of the "Ukraine Facility Plan". Economic scope, 191, 142–153 [in Ukrainian]. https://doi.org/10.32782/2224-6282/191-24]
OECD. (2020). Report on the Collaboration with Institutional Investors and asset managers on infrastructure: investor proposals and the way forward. https://www.gihub.org/resources/publications/g20oecd-report-on-the-collaboration-with-institutional-investors-and-asset-managers-on-infrastructure-july-2020/
Panayiotou, A., & Medda, F. (2026). Portfolio of infrastructure investments: Analysis of European infrastructure. Journal of Infrastructure Systems. 22(3). https://doi.org/10.1061/(ASCE)IS.1943-555X.0000300
Shmorhun, I., & Kanishchenko, O. (2024). The development of sustainable international portfolio investing processes. Zeszyty Naukowe Wyższej Szkoły Bankowej w Poznaniu, 2(101). https://doi.org/10.58683/dnswsb.626
Studart, R., & Gallagher, K. (2018). Guaranteeing sustainable infrastructure. International Economics, 155. 84–91. https://doi.org/10.1016/j.inteco.2018.03.003
Thierie, W., & De Moor, L. (2016). The characteristics of infrastructure as an investment class. Financial Markets and Portfolio Management, 30, 277–297. https://doi.org/10.1007/s11408-016-0273-9
Tishchenko, Е. (2019). Activation of investment activities in Ukraine based on the use of project financing. Business Navigator, 2 (51), 144–149 [In Ukrainian]. http://nbuv.gov.ua/UJRN/bnav_2019_2_30]
WEF (2016). Risk Mitigation Instruments in Infrastructure Gap Assessment http://www3.weforum.org/docs/WEF_Risk_Mitigation_ Instruments_in_Infrastructure.pdf
Wehrle, R., Wiens, M., & Schultmann, F. (2014). Evaluation of the potential of infrastructure funds: The case of inland waterways in Germany. Technological Forecasting and Social Change. Vol. 208. 123711. https://doi.org/10.1016/j.techfore.2024.123711.
WBG. (2025). Ukraine Fourth Rapid Damage And Needs Assessment (RDNA4): February 2022 – December 2024. https://openknowledge.worldbank.org/ server/api/core/bitstreams/96bd9c94-c327-49b4-8aff-fe125686f04e/content
WBG. (2013). World Investment and Political Risk. MIGA. https://openknowledge.worldbank.org/entities/publication/c2ea3851-7823-5dd4-8774-a3bbc5ed077d
Yescombe, E. R. (2014). Principles of Project Finance (2nd ed.). YCL Consulting Ltd.
Zatonatska, T., & Osypenko, S. (2025). Determinants of mezzanine financing for critical infrastructure during post-war recovery. Finance of Ukraine, 5, 43–70 [in Ukrainian]. https://doi.org/10.33763/finukr2025.05.043
Downloads
Published
Issue
Section
License
Copyright (c) 2026 Світлана НАУМЕНКОВА, д-р екон. наук, проф., Cвітлана МІЩЕНКО, д-р екон. наук, проф., Ярослав ГОНЧАРЕНКО, асп.
This work is licensed under a Creative Commons Attribution 4.0 International License.
Please read more here: https://econom.bulletin.knu.ua/copyright
