Investment Strategies for International Companies Entering the Ukrainian Market During the Wartime and Post-War Periods: Challenges and Prospects

Abstract

The purpose of the article is to analyze the investment strategies of international companies entering the Ukrainian market during the wartime and post-war periods, as well as to identify key factors influencing the choice between Greenfield investments and mergers and acquisitions (M&A). Additionally, the study examines the prospects for the development of Ukraine's investment environment in the context of global economic instability.

The research methodology combines a theoretical analysis of business internationalization concepts developed by leading global scholars with an empirical analysis of statistical data on foreign direct investment (FDI) flows into Ukraine. Specifically, reports from UNCTAD, the World Bank, and national analytical centers provided the basis for a comparative analysis of Greenfield and M&A investment trends in developed and developing countries, as well as a systematic analysis of the impact of global investment trends on the entry strategies of international companies into the Ukrainian market during and after the war. The findings are supported by the case study method, illustrating implemented investment strategies and projects of international companies in Ukraine.

The results of the analysis of the active war period in 2022–2023 demonstrate an overall increase in investment inflows into Ukraine, driven by the intensification of international financial assistance programs and expectations of future economic recovery. Greenfield investment volumes reached a record high of $5.676 billion, attributed to the implementation of large-scale projects in infrastructure reconstruction, energy, and industry. At the same time, the rise in the number of M&A deals was due to opportunistic acquisitions of undervalued assets and the exit of certain foreign companies from the Ukrainian market. The study reveals that M&A strategies often serve as an initial entry phase for international companies, after which they expand their presence through Greenfield and Brownfield investments.

Based on the conducted research, it is concluded that, in the long term, Ukraine has the potential to become an important region for international investments, particularly in the context of post-war recovery. The synergy between Greenfield investments and M&A represents a promising model for international companies seeking to establish a foothold in the Ukrainian market. The successful implementation of these strategies depends on the stabilization of the security situation, infrastructure development, improvements in the business climate, and the assurance of investor rights protection.

Further research is required to assess the effectiveness of government policies in stimulating foreign investments and their impact on Ukraine's macroeconomic stability.