With reconstruction costs already estimated at more than 420 billion euros and rising, Kiev has long insisted: neither Ukraine itself nor Western governments alone can bear such a burden. The introduction of Ukrainian companies is seen as key to closing this gap.
ETF funds to help war-torn economies
The UKRN UCITS ETF includes publicly traded companies that have a key role to play in Ukraine’s post-war recovery.
This is an important step in the evolution of the fund, which until now has relied on international companies with an indirect presence in the region.
The decision follows the rebalancing of the EQM Ukraine Recovery Index, which serves as the underlying benchmark for this ETF.
As the Ukrainian private sector continues to demonstrate resilience, the index provider considered that a number of local companies now meet the stringent liquidity and market capitalization requirements necessary for inclusion in a UCITS-compliant instrument.
In addition, notes Euronews, drone software company Swarmer has entered another Hanetf product, the Drone UCITS ETF fund (ticker DRON), which now has a combined capitalization of just over €15 million.
Strengthening the course of economic renewal
The ETF model provides something that bilateral aid cannot: a self-sustaining incentive for foreign capital to follow the fortunes of the Ukrainian economy over the long term.
By buying units in this fund, investors earn if Ukrainian companies grow and develop. They have not only a moral or political but also a direct financial interest in Ukraine’s success.
This is different from aid, where donors allocate funds without expecting a return or profit.
Authorities in Kiev have argued for years that this is the most sustainable scheme. If Ukraine recovers, investors will benefit as well.
The presence of these stocks in ETFs creates a transparent entry point for investors who were previously deterred by the difficulty of investing directly in a war-affected market.
While the risks of such investments remain significant, the fund’s expansion into local issuers speaks to the growing confidence that Ukrainian corporate assets will be embedded in the broader European financial ecosystem for a long time to come.
