Russia’s full-scale invasion of Ukraine in February 2022 has generated the largest armed conflict in Europe since World War II and inflicted severe economic damage—direct losses to physical assets are now estimated at USD 176 billion, while total recovery needs exceed USD 500 billion. A successful Ukraine’s reconstruction will therefore rely heavily on private capital. Yet political-risk perceptions remain acute because of continuing hostilities, historically weak rule-of-law indicators and entrenched corruption. This article evaluates the multilayered system through which foreign investors can mitigate those risks. First, it reviews domestic Ukrainian initiatives. Second, it analyses international risk-mitigation instruments, focusing on Multilateral Investment Guarantee Agency (MIGA) war-risk cover and the rapidly expanding role of export-credit agencies. Third, the article considers the substantive and procedural protections available under Ukraine’s network of 65 bilateral investment treaties, the Energy Charter Treaty and the ICSID Convention.
Keywords: Ukraine; foreign direct investment; political-risk insurance; MIGA; export-credit agency; bilateral investment treaty; full protection and security; war-loss clause; reconstruction.
The original research paper is available in the Czech language under this link.
The research paper was supported by Charles University Research Centre program No. UNCE24/SSH/039.